Name: CARREON, MAUI JOY C.

Rating: ________________
Year and Section: BSTM 3B Professor / Instructor: MR. NOEL MUNSAYAC
Due of Submission: December 13, 2023
<< SEMI- FINAL>>
<< Operations and Management in Tourism and Hospitality>>

A Descriptive Research
of Differencing the
Supply Chain
Management (SCM) and
Operations Management
(OM)
A Research Paper Presented to the Faculty Member, Mr. Noel Munsayac of
College of Hospitality Management and Tourism

A Partial Fulfillment for the Subject Requirement in Business, Operations

Management in Tourism Hospitality Industry with the Subject Code
DYCHBOM313

Submitted by: Maui Joy C. Carreon

December 2023
 INTRODUCTION

An organization's ability to successfully manage its resources and procedures is crucial in

the complex network of modern business. The success of businesses is determined by two crucial

areas that are frequently combined in discussions: supply chain management (SCM) and operations

management (OM). The topic of this paper is aimed to highlight the differences between SCM and

OM, emphasizing their different areas and emphasizing the importance of their mutually beneficial

cooperation.

Supply Chain Management is a strategic front-runner that covers a good or service's whole

lifetime. SCM is a comprehensive method that incorporates a range of processes, such as

manufacturing, distribution, transportation, and customer support, from the point of conception to the

final delivery into the hands of the end user. SCM's main objective is to guarantee the smooth

movement of items, data, and funds across the supply chain network, which will eventually increase

customer satisfaction by delivering things on time and at a reasonable price. Operations Management,

on the other hand, focuses on an organization's internal workings to effectively create goods and

services, casting a wider net. Internal activities like production scheduling, inventory control, quality

assurance, and process optimization are managed by operations management (OM). Its main

responsibility is to make sure that the organization runs smoothly daily, with an emphasis on

increasing productivity, cutting expenses, and improving the general effectiveness of production

processes.

It is important to understand that SCM encompasses more than just organizational

boundaries to fully understand the complexities of these two domains. It requires careful cooperation

with other parties, such as distributors, manufacturers, suppliers, and retailers. On the other hand,
operations management (OM) focuses on the internal coordination of activities inside the boundaries

of the company and is more introspective. In the scholarly site, Chopra and Meindl (2007) elaborate

on supply chain management (SCM) as "the integration of key business processes from end-users

through original suppliers that provide products, services, and information that add value for

customers and other stakeholders." Stevenson (2018) puts it another way: Operations Management is

"the set of activities that creates value in the form of goods and services by transforming inputs into

outputs."

Even if conventional sources like books add a great deal to our knowledge, the digital world

has a lot of recent data as well. A thorough digital resource that dives into the specifics of supply

chain dynamics is Christopher's (2016) Logistics & Supply Chain Management. Mentzer et al.'s

(2001) revolutionary description of supply chain management, which was published in the Journal of

Business Logistics, may be accessed online for a deeper look at the scholarly conversation. There is

no doubt the connection between SCM and OM, as their combined efforts influence an organization's

efficacy and efficiency. The convergence global markets and technological advancements makes the

interdependence of these fields even more crucial for long-term corporate success.

The Supply Chain Management

Chopra and Meindl stated in their book "Supply Chain Management: Strategy, Planning,

and Operation" (2007) "the integration of key business processes from end-users through original

suppliers that provides products, services, and information that add value for customers and other

stakeholders." Essentially highlights how strategic and comprehensive supply chain management is.
SCM entails coordinating and integrating several processes, beginning with the end users, and

continuing through all manufacturing phases and original suppliers. The ultimate objective is to offer

value for consumers and other stakeholders by establishing a smooth flow of goods, services, and

information throughout the whole supply chain. This concept emphasizes how crucial coordination

and cooperation between various supply chain participants are to achieving effectiveness and client

satisfaction.

"Logistics & Supply Chain Management," authored by Christopher (2005), probably offers

a thorough examination of these ideas, revealing tactics, ideal procedures, and the changing dynamics

of supply chain management in modern corporate settings. Perhaps his essential supply chain

management components are:

• Purchasing: the components or raw materials required for production is known as

procurement.

• Production: consists of the process of creating or assembling goods in accordance with market

demands and quality requirements.

• Distribution: focuses on the effective transfer of completed commodities from the point of

production to the final customer or merchant.

• Logistics: Contains inventory management, storage, and transportation along the whole

supply chain.

• Information flow: is the process by which supply chain participants exchange accurate and

timely information to support coordination and decision-making.

• Risk management: identifies possible supply chain interruptions and uncertainties and creates

plans to reduce them.

 Supply chain management, as defined by Mentzer et al. (2001) highlights the coordination

and integration of multiple processes from end-users to original suppliers across the supply chain

network, emphasizing the holistic nature of SCM. Adding value to consumers and other stakeholders

through smooth information, service, and product flow is the aim. SCM is essentially the strategic

management of a product or service's whole lifetime, from the time it is created to the time it is

delivered to the final customer.

The Operations Management

According to the field's acknowledged definition, operations management (OM) is the

management of business procedures to maximize efficiency within an organization. To optimize an

organization's profit, labor and materials must be converted as effectively as possible into goods and

services.

Stevenson (2018) states that the actions involved in converting inputs (such labor, raw

materials, and energy) into outputs (goods and services) as effectively and efficiently as possible are

probably included in operations management. It frequently consists of components including process

optimization, inventory control, quality assurance, and production planning. The main objective is to

provide value to the company by satisfying client wants and efficiently allocating resources while

providing goods and services. Perhaps his key elements of operations management are:

• Production planning: is the process of figuring out the best ways to manufacture

products or provide services. It involves choices on capacity planning, scheduling, and

resource allocation.
• Inventory management: A common area of focus for operations managers is

maximizing inventory levels to make sure that there are enough goods to satisfy

consumer demand without needlessly overstocking, which requires financial

resources.

• Quality Control: A crucial component of operations management is guaranteeing the

caliber of goods or services. This entails procedures for keeping an eye on and

managing the caliber of the products made or services provided.

• Process optimization: is the study and enhancement of procedures for efficacy and

efficiency. Process reengineering may be necessary to cut down on waste, boost

output, or improve overall performance.

• Supply chain management: Organizing the movement of products and services,

encompassing the acquisition, manufacturing, shipping, and delivery processes.

Timely delivery and cost control are dependent on efficient supply chain management.

• Facility Design and Layout: Establishing the best possible configuration for

machinery, staff, and other elements of a physical area in order to maximize

operational effectiveness is known as facility design and layout.

• Project management: is the process of overseeing individual projects within an

organization and making sure they are finished on schedule, within budget, and in

compliance with requirements.

 Conclusion

In conclusion up, the comparison between Supply Chain Management and Operations

Management can be likened to the balancing of different instruments in an orchestra. Even though

each has a distinct melody, their combined symphony is much more powerful. Understanding,

valuing, and taking advantage of the subtle differences between supply chain management and

operations management will be essential for businesses to integrate harmoniously and effectively into

their global company plans as they continue to build their strategies in the business world's crescendo.

The differences between SCM and Operations Management OM become crucial landmarks

for navigating the maze of contemporary corporate complexities. Even though these terms are

frequently used synonymously, a closer look exposes the distinct spaces they occupy in the larger

context of organizational efficiency. As we come to the end of our investigation, companies looking

to prosper in the intricate and linked global marketplaces of today must comprehend and balance the

interaction between SCM and OM.

The need for companies to grasp the synergy between SCM and OM is growing as they face

more and more challenges from globalization, technical breakthroughs, and constantly changing

consumer expectations. It is not only a strategic decision to integrate these domains seamlessly; it is

an organizational requirement. They share a symbiotic relationship within the broader spectrum of

business management. SCM focuses on the end-to-end coordination of processes across the supply

chain network, while OM concentrates on internal operations to enhance efficiency and productivity.

Recognizing and leveraging the synergies between these two domains are imperative for

organizations striving to navigate the complexities of the contemporary business landscape.

 REFERENCE

Chopra, S., & Meindl, P. (2007). Supply chain management. Strategy, planning & operation

(pp. 265-275). Gabler. Retrieved from https://www.researchgate.net/profile/Abdelkader-

Bouaziz/post/Can_I_request_if_someone_can_help_me_with_pearson_instructor_manual_for_Suppl

y_chain_management_strategy_planning_and_operation_2016/attachment/5f09e009ceab7c00013665

46/AS%3A912140693143553%401594482696611/download/Supply+Chain+Management+Strategy

%2C+Planning%2C+and+Operation.pdf

Stevenson, W. J., Hojati, M., & Cao, J. (2018). COMM 225: Production & Operations

Management: Custom Publication for Concordia University. McGraw-Hill Education Custom

Publishing. Retrieved from:

https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=Stevenson%2C+W.+J.+%282018%29.

+Operations+Management.&btnG=

Christopher, M. (2016). Logistics and Supply Chain Management: Logistics & Supply Chain

Management. Pearson UK. Retrieved from:

https://books.google.com.ph/books?hl=en&lr=&id=IRXQEAAAQBAJ&oi=fnd&pg=PP1&dq=Christ

opher,+M.+(2016).+Logistics+%26+Supply+Chain+Management.+Pearson+UK.&ots=V24oHdyXE

O&sig=9j3MqxBcARXbu1Y2x0kq3SGrHD8&redir_esc=y#v=onepage&q=Christopher%2C%20M.

%20(2016).%20Logistics%20%26%20Supply%20Chain%20Management.%20Pearson%20UK.&f=f

alse

Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z.

G. (2001). Defining supply chain management. Journal of Business logistics, 22(2), 1-25.

https://onlinelibrary.wiley.com/doi/abs/10.1002/j.2158-1592.2001.tb00001.x