What are the key operations of supply chain management?

Supply chain management has five key elements: planning, sourcing raw materials, manufacturing, delivery and returns. The three main aspects of operations and supply chain management are purchasing, planning and logistics. Purchases refer to obtaining raw materials for the manufacture of goods. Planning involves estimating the manufacturing quantities needed after forecasting demand.

Finally, logistics will be responsible for the delivery of the goods from the warehouse to their destinations. Supply chain operations include the systems, structures, and processes for planning and executing the flow of goods and services from supplier to customer. To maximize efficiency, it is essential to evaluate both internal operations and the expanded supply chain that includes suppliers and customers. Simply put, operations and supply chain management, also known as logistics, are the flow of goods and services.

It consists of each of the processes involved in the transformation of raw materials into final products and their distribution to consumers. Supply chain functions are critical business operations and have a significant impact on company costs and benefits. The field of operations and supply chain management is based on computers, tablets, wireless networks and data analysis to ensure optimized logistics. Continue reading about the careers and salary details of available positions in operations and supply chain management.

The two areas related to supply chain management and operations management must work together in close collaboration. Those working in operations and supply chain management must have strong planning skills and the ability to maximize efficiency and minimize costs. Both supply chain management and operations management are important to the company and have the same objective. Strategic supply chain operations lead companies towards sustained improvement, which is fundamental to business operations, including company costs and profits.

When the supply chain meets or exceeds customer expectations, it's due to efficiency. Both operations management and supply chain management are necessary to improve business operations, enable more productive workflows and, ultimately, increase the organization's profits. Warehouse managers and inventory managers perform administrative and physical tasks to facilitate the safe storage of goods and materials in the supply chain. The effective supply chain leader of tomorrow is a technology expert and is comfortable working alongside the world of “machines”.

The term “Operations and Supply Chain Management” (OSCM) refers to the management of 26% of an organization's supply chain operations. The economic downturn, increasing price pressures from customers, and challenges related to operational and financial performance are placing significant pressure on corporate supply chain operations.