Professional Documents
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R.A.G.D.K.Jayawickrama
S15809
• Transporting
• Storing
3 What is Management?
The planning, organizing,leading and controlling of human and other resources to achieve organizational
goals effectively and efficiently.
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4 What is operations management?
• Operations Management is the activity of managing the resources which produce and deliver goods
and services.
• Operations can be seen as one of many functions (e.g.marketing,finance,personnel) within the organi-
zation.
• The operations function can be described as that part of the organization devoted to the production
or delivery of goods and services.
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5 What is the difference between Production, Operations and Lo-
According to the Council of Supply Chain Management Professionals (CSCMP) the definition of supply
chain management (SCM) is as follows:
Supply chain management encompasses the planning and management of all activities involved in sourcing
and procurement, conversion, and all logistics management activities. Importantly, it also includes coordi-
nation and collaboration with channel partners, which can be suppliers, intermediaries, third-party service
providers, and customers. In essence, supply chain management integrates supply and demand management
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within and across companies.
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5.3 What are the Differences (and Similarities)?
• Operations management tends to be associated more with the production of goods as opposed to
the movement of goods. However, some would say that operations management is the basis of both
supply chain management (SCM) and logistics. As operations management is about turning inputs
into outputs we can also include services in this and not confine ourselves purely to production. The
inputs themselves can include anything from materials, equipment and technology to human resources
including drivers and warehouse operatives.
• There have been occasions where the terms logistics and SCM have been interchangeable. However,
in my view, SCM is all-encompassing whereas logistics, as defined by The Business Directory, is more
about the storage and movement of goods.
• There are strong parallels between the skills required for effective operations management and those
needed in both logistics and supply chain management. Excellent organizational skills are crucial in
improving efficiency and driving productivity as an operations manager.
• Improved productivity is required in freight vehicle operations and warehouse processes and all along
the supply chain in order to ensure the profitability of a company.
• Although there are differences, these terms and roles are very much inter-related and in order to be
profitable in this competitive age, companies must have an experienced and effective team of supply
chain, logistics and operations managers.
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