Operations Management vs Logistics Management: What's the Difference?

Operations management is often associated with the production of goods, while logistics management is associated with the movement of goods. However, some would say that operations management is the foundation of both supply chain management (SCM) and logistics. Logistics or logistics management is part of SCM and is mainly concerned with planning and transporting goods from one place (exporter) to another (importer), as needed. It also deals with the storage and security of operations management. Logistics is the efficient flow and storage of products from their point of origin to the point of consumption.

Operations planning, on the other hand, is the strategy employed by an organization that affects all aspects of production. These strategies range from workforce activities to product delivery. A small business requires effective logistical and operational planning to produce products and deliver them to the end user. In addition, operations planning seeks to maximize capacity, monitor interactions within the system, and maintain strong relationships with suppliers. Usually, a logistics team works to ensure that the company obtains the raw materials needed to produce goods at a reasonable price, organizes the storage of products before sale, and ensures that finished products are shipped as contracted.

In addition to manufacturing operations, supply chain management coordinates business processes and activities in marketing, sales, product design, finance, and information technology. However, production planning only focuses on actual production, while operation planning considers the operation as a whole. The job involves production and service operations, and operations and logistics workers are responsible for managing the supply chain, from the purchase of raw materials to the production cycle and final delivery. The Council of Supply Chain Management Professionals defines supply chain management as the planning and management of all supply and procurement, conversion and logistics management activities. Companies may refer to operations planning as production planning, which employs many of the same techniques. For example, procurement logistics encompasses everything that involves the acquisition of the necessary logistical support equipment.

According to the book Contemporary Logistics, the military first used the term logistics to describe the process of supplying troops and equipment to a war zone. It deals with the design and control of the production process and commercial operations related to goods or services. The field of operations and logistics focuses on ensuring that the right quantity and quality of materials and goods are produced and delivered to the right recipients in accordance with the schedule. In addition, some companies that deal with the supply of goods have a dedicated logistics department. In business operations, operations and logistics managers implement and manage systems for “the efficient deployment of personnel, physical facilities, in-process inventories, finished products, and related information or services” as defined by the Business Department of University of Missouri in Saint Louis.

The Egyptians devised plans for organization and management of large projects that involved complex logistics such as constructionof pyramids.

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