How does proper control of Supply Chain & Operations Management add to company profitability? What is Supply Chain and Operations Management? Supply Chain Management is the governing of supply chain movement to maximize the consumers profit and obtain a sustainable competitive advantage. Supply Chain serves as a mindful effort by the supply chain firms to create and manage the supply chains in the most effective and efficient ways. Supply Chain enterprise covers an array of areas from product creation, production, and sourcing. Operations Management deals with tuning materials and labor into goods and services as effectively as possible to maximize the profit of a company. Operations Management ensures that business operations are efficient,
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Firms depend on supply chains because they help manage and cut down supply chain costs, thus leading to an increase in profits. For instance, consumers devour 2.7 billion packages of cereal yearly, cutting down the supply chain cost by 1% would conclude in $13 million dollars saved. Firms rely on supply chains because they reduce the use of big assets such as plants, warehouses and vehicles. If supply chain managers can reconstruct the system to serve the consumers from four facilities rather than seven. Supply chain managers help speed up products to the consumers. If a company can deliver a good to a consumer in 5 days as oppose to 15, the invoice can be made 10 days’ …show more content…
Supply Chain deals with what happens outside the company, where Operations Management is what happens inside a company. These two ideas do correlate with one another, and depend on each other. In conclusion, Supply Chain deals with the purchasing of raw material, stocking it, and converting it into finished goods. Operations Management is what you do with it and how well you handle it. These ideas help bring success to a company and businesses depend on these strategies to not only ensure product satisfaction but customer
Firms depend on supply chains because they help manage and cut down supply chain costs, thus leading to an increase in profits. For instance, consumers devour 2.7 billion packages of cereal yearly, cutting down the supply chain cost by 1% would conclude in $13 million dollars saved. Firms rely on supply chains because they reduce the use of big assets such as plants, warehouses and vehicles. If supply chain managers can reconstruct the system to serve the consumers from four facilities rather than seven. Supply chain managers help speed up products to the consumers. If a company can deliver a good to a consumer in 5 days as oppose to 15, the invoice can be made 10 days’ …show more content…
Supply Chain deals with what happens outside the company, where Operations Management is what happens inside a company. These two ideas do correlate with one another, and depend on each other. In conclusion, Supply Chain deals with the purchasing of raw material, stocking it, and converting it into finished goods. Operations Management is what you do with it and how well you handle it. These ideas help bring success to a company and businesses depend on these strategies to not only ensure product satisfaction but customer