6.4 Similarities and Dissimilarities between SCM, VC and OM
Supply chain management and Operations management are two terms which are
closely related to each other. In organizations, these are often confused by managers.
Both the concepts have several similarities and overlapping of concept, but there are
differences that separate two of them.
Broadly, we can say that Supply Chain management is the management of things
outside the company whereas Operations management deals within the company.
However, both the terms are really close and dependent. Generally SCM is seen as a
subset of OM. SCM deals with controlling and monitoring of purchasing of raw
material equipments that are required for manufacturing of products. OM deals with
the bigger set of activities including SCM.
Similar relationship is shared between logistics and supply chain management.
Supply chain management is an overall management of material which includes
procurement of raw material to delivery of end product to the end user. Supply chain
management can be defined as design, planning execution, control and monitoring of
supply chain activities. On the contrary, logistics deal mainly with the flow of goods
from point of production to point of consumption.
If we compare supply chain management with the total quality management, we
can say that ultimate goal of both of them is to achieve customer satisfaction.
Though origin point of both of them is different but they are evolving along similar
paths. Both of them come into the picture to fulfil the need of tactical strategies for
operations. TQM is the management philosophy, “that encourages cost reduction, the
creation of high quality goods and services, customer satisfaction, employee
empowerment, and the measurement of results” (Gunasekaran and McGaughey,
2003, p. 361). Whereas, SCM is the management philosophy which manages total
flow of material through various channels from producer to the ultimate customer.