What is the difference between supply chain management and demand management

Many industries require both supply chain management and operations management, whether the business is moving services, products, raw materials, data or money into the hands of its customers. The major difference between supply chain management and operations management is that supply chain is mainly concerned with what happens outside the company — obtaining materials and delivering products — while operations management is concerned with what happens inside the company.

This means the supply chain manager spends time negotiating contracts and evaluating suppliers, whereas the operations manager is often planning and overseeing the daily operations and processes.

Supply chain management activities are generally the same across industries; however, operations management roles and responsibilities can vary widely depending on the product or service the business produces.

Although these roles share many overlapping skills and even intersect, aspiring professionals should consider whether they would prefer the external focus supply chain managers adopt or the internal lens of an operations manager. If global markets, quality control, transportation and logistics and designing value in the supply chain are of greater interest, you may wish to pursue supply chain management.

Alternatively, if you would prefer to spearhead production, planning, workflow and staffing, you may thrive as an operations manager. Often, professionals look for a competitive edge with additional degrees or certifications that can equip you with in-depth knowledge of fundamentals for these roles.

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Complete the form below to get started today and take the next step in your educational journey. This major difference means that the supply chain management professionals spend time evaluating suppliers, negotiating contracts, while the operations management professionals are often involved in planning and managing the day-to-day operations and processes. The activities are typically the same in supply chain management.

However, the responsibilities and roles may vary in operations management depending on the products or services the organization produces. Supply Chain Management vs. Even though these profiles share some overlapping as well as intersecting skills, aspiring professionals must consider their area of interest. For instance, if you have an interest in the quality control, global markets, transportation and logistics, and designing value, you can pursue supply chain management.

On the other hand, if you like planning, spearhead productions, staffing, and workflow, you would go to operations management.

To put it simply, no one can tell you better about which field you should choose. It is purely your decision to decide on the field by keeping your previous education, interest, skills, and career objectives in mind.

To kick-start either in supply chain management or operations management, you need to get a degree in the related field first. Here, our dedicated team of professionals will help you filter out the best-fit options so that you can have a better tomorrow. Operations Management April 4, Blog. Contact Us Do you need help? Learn more in our introductory logistics guide. Supply chain management refers to the activities that create finished goods from raw materials and deliver them to the customer.

SCM also focuses on improving supply chain processes, which can benefit both customers and business partners. A company can only optimize and continuously refine SCM when it has visibility across its supply chain. This visibility enables companies to track goods and services as they move through each stage of the supply chain, which makes it much easier to see if everything is running as planned.

It also gives decision-makers more time to respond to disruptions or other roadblocks. SCM involves overseeing an often-vast network of sub-suppliers like raw materials providers , suppliers, manufacturers, logistics partners, wholesale distributors, retailers and end users. The relationships between these various stakeholders in the supply chain vary. They can be vertical, such as between parts and materials suppliers, manufacturers and retailers, or horizontal, where a company merges with or acquires a similar business that operates at the same stage of the supply chain.

As part of the SCM function, the company sources the chemicals and containers it needs from suppliers, makes the end product and then distributes the finished goods to convenience stores, drug stores and supermarkets. Supply chain management touches on every process involved in the movement of those products.

Logistics includes planning and executing the storage and movement of goods between different points in the supply chain. Demand planning, transportation including fleet management , inventory management, material handling and order fulfillment are all processes that fall under logistics.

To learn more, read our article on logistics management. Both supply chain management and logistics focus on the flow of goods from the point of origin to the endpoint. Both disciplines require careful coordination of supplies, labor and facilities to make sure items can move through the supply chain as required.

Logistics is a key component of supply chain management, but just one piece of the equation. Supply chain management and logistics both work to move, store and deliver goods as efficiently as possible. Supply chain management provides the strategic direction that guides inbound and outbound logistics. Supply chain management outlines the strategy and activities that go into planning , sourcing, producing and delivering goods, as well as handling returns.

Logistics focuses on the right products being in the right place at the right time, and how to get them there. As should be clear at this point, supply chain management and logistics definitely intersect, but they differ when it comes to their scope and focus.

Logistics include the numerous transportation methods that get inventory from one location to another. Logistics are a critical piece of supply chains because it manages and tracks the people and resources needed to store and transfer goods and services. Logistics ensure that materials and products reliably move at the right time and on budget.

The field of logistics is constantly evolving as customer trends change. Logistics training helps employees and their companies stay current with best practices. Training gives a company the tools it needs to analyze and improve customer demand, product design and distribution strategies. Logistics and supply chain management help businesses stay competitive. Supply chain logistical components help to manage goods or services. Each element helps move materials, finished goods and services through the many steps in the supply chain.

Supply chain management and logistics both support customer needs and improve the buying experience. Logistics provides direct feedback on customer demand. SCM uses this data to understand what consumers want and plan production and inventory levels.