Operations and supply chain management (OSCM) is a wide-ranging field that encompasses both manufacturing and service industries, and includes functions such as sourcing, materials management, operations planning, distribution, logistics, retail, demand forecasting, order fulfillment and more.
Operations management
is usually associated with the production of goods rather than the movement of goods. However, some would argue that operations management is the foundation of both supply chain management (SCM) and logistics. Since operations management involves transforming inputs into outputs, it can also include services and not just production. The inputs can include anything from materials, equipment and technology to human resources, including drivers and warehouse operators.The most important distinction is that logistics is a distinct part of the supply chain and is essential for good supply chain performance. A supply chain can have many different types of logistics and logistics companies, all dedicated to helping the supply chain run smoothly. However, each logistics operation is only responsible for a single, independent part of the supply chain. Getting a product to the consumer is a complex process that involves multiple internal and external processes and companies throughout the process. Each actor involved oversees their part in the process through various types of oversight, including supply chain management and operations management.
SCM uses logistics to deliver goods to the consumer, but ultimately strives to improve results and increase the company's competitive advantage. Both disciplines require careful coordination of supplies, labor and facilities to ensure that items can move through the supply chain as needed. The information helps to track the status of items and all processes in the supply chain, which serves as the basis for business decisions at every step. While there are differences between them, these terms and functions are closely related to each other and companies must have an experienced and effective team of supply chain, logistics and operations managers in order to be profitable in this competitive era. SCM involves overseeing an often extensive network of sub-suppliers (such as raw material suppliers), suppliers, manufacturers, logistics partners, wholesale distributors, retailers and end users. The main difference between supply chain management and operations management is that the supply chain is mainly concerned with what happens outside the company (obtaining materials and delivering products), while operations management deals with what happens inside the company. Higher productivity is required in freight vehicle operations and warehouse processes throughout the supply chain to ensure profitability.
Ultimately, a strong supply chain provides a competitive advantage to all organizations involved. The Council of Supply Chain Management Professionals states that logistics is “part of the supply chain process that plans, implements and controls the efficient and effective flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer requirements”. Both supply chain management and logistics focus on the flow of goods from the point of origin to the end point. Supply chain management encompasses planning and managing all activities related to procurement, conversion and all logistics management activities. Supply chain managers must regularly evaluate suppliers and their strategies and protocols, forecast demand to avoid oversupply, improve customer service, coordinate with other company departments such as marketing, finance, sales and quality control. In other words, SCM sets the strategy and directs daily logistics activities that take place in factories, warehouses, local shipping centers or other facilities.
The objective of logistics is to get goods or services to customers on time at a competitive price. By connecting a global ecosystem of multimodal carriers to manage every movement, Blume Logistics unites maritime and rail transport companies with first-mile transport to track events and costs in real time. In conclusion, it can be said that operations management forms an integral part of both SCM (Supply Chain Management) as well as Logistics. Operations management involves converting inputs into outputs while SCM uses logistics to deliver goods to customers while striving for improved results. Logistics focuses on getting goods or services from one point to another while SCM oversees an extensive network of sub-suppliers. All these activities are essential for businesses to remain competitive in today's market.
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