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What is Operations and Supply Chain Management (OSCM)?

What is Operations and Supply Chain Management (OSCM)?

In an era of globalization and upgraded consumer expectations, mastering OPSM is essential. So this blog will discuss the field of operations and supply chain management, best practices, and the impact of technology that drives businesses forward.  

Table of Contents:

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What is Operations and Supply Chain Management?

Operations and supply chain management involves overseeing the processes that create and deliver a company’s products and services. It includes managing the flow of materials, information, and finances throughout the entire value chain, from suppliers to customers. 

OSCM is key in aligning a company’s operations with its strategic goals and ensuring the effective and efficient fulfillment of customer demands. It comprises two core components: operations management and supply chain management.

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Why Operations and Supply Chain Management is Important?

Why Operations and Supply Chain Management is Important?

Operations and supply chain management are of utmost significance for businesses across various sectors, regardless of size. 

Now, let’s find out why OSCM is important!

Cost Reduction- OSCM helps companies trim expenses through efficient resource allocation, optimized inventory management, and favorable supplier negotiations. This leads to improved profitability and competitiveness.

Quality Enhancement- By implementing rigorous quality control measures across the supply chain and collaborating closely with suppliers, OSCM ensures consistent product and service quality, strengthening a company’s reputation.

Customer Satisfaction- It plays a key role in satisfying customers. It ensures timely and accurate delivery of products and services, aligning with customer expectations for quality and value. Satisfied customers are more likely to remain loyal and refer others.

Adaptability and Resilience- OSCM equips businesses to respond swiftly to market changes and disruptions. It enhances adaptability by optimizing supply chain flexibility, making it easier to pivot in response to evolving customer demands or unexpected events.

Innovation and Sustainability- It encourages continuous process improvement and eco-friendly practices. Sustainability efforts, such as reducing waste and carbon emissions, are integrated into supply chain strategies, appealing to environmentally conscious consumers.

Global Reach- In an increasingly interconnected world, OSCM enables companies to operate globally. It facilitates international sourcing, production, and distribution, tapping broader markets and diversifying revenue streams.

Risk Mitigation- By identifying and addressing potential risks within the supply chain, OSCM helps companies minimize disruptions caused by factors like natural disasters, political instability, or economic fluctuations.

Resource Optimization- Efficient OSCM optimizes the use of resources, including labor, machinery, and capital. This maximizes productivity and minimizes waste, contributing to sustainability and profitability.

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Features of Operations and Supply Chain Management

OSCM encloses a range of activities and features that are essential for the efficient and effective functioning of any organization. 

Here are some key features of operations and supply chain management:

Process Optimization- One of the primary goals of OSCM is to optimize processes throughout the supply chain. This includes everything from production and inventory management to distribution and logistics. By streamlining and improving these processes, organizations can reduce costs, improve quality, and increase customer satisfaction.

Inventory Management- Efficient inventory management is a fundamental aspect of OSCM. It involves determining the right inventory level to meet customer demand while minimizing carrying costs. Just-in-time inventory systems and safety stock planning are common practices for inventory management.

Supplier Relationship Management- Effective supplier relationships are essential for a smooth supply chain. OSCM includes features for evaluating and selecting suppliers, negotiating contracts, and monitoring supplier performance to ensure the timely delivery of quality materials and components.

Quality Management- Maintaining product and service quality is critical for customer satisfaction and brand reputation. OSCM features quality control processes, continuous improvement initiatives like Six Sigma and Total Quality Management (TQM), and commitment to industry standards and regulations.

Distribution and Logistics- Efficient distribution and logistics are vital for getting products to customers on time and in good condition. OSCM includes features such as route optimization, warehouse management, and transportation planning to minimize costs and delivery times.

Technology Integration- Modern OSCM relies heavily on technology, including software solutions for demand forecasting, inventory management, and supply chain visibility. Features like Enterprise Resource Planning (ERP) systems and Supply Chain Management (SCM) software enable organizations to manage their operations more effectively.

Global Operations- Many organizations operate on a global scale, which adds complexity to their supply chains. Features of global OSCM include managing cross-border logistics, complying with international regulations, and dealing with currency exchange and geopolitical risks.

Want to optimize your supply chain operations? Learn about the key features of Supply Chain Management.

Impact of Technology on OSCM

Impact of Technology on OSCM

The impact of technology on OSCM is revolutionizing how businesses plan, manage, and optimize their operations. Now, we will discuss how various technological advancements are shaping OSCM:

Artificial Intelligence (AI)- AI is a game-changer in OSCM. Machine learning algorithms are employed to automate and enhance several critical functions. Demand forecasting, for instance, is becoming more accurate as AI systems can analyze historical data, market trends, and external factors to predict demand fluctuations. AI-driven systems also optimize inventory management by suggesting reorder points, reducing excess inventory, and minimizing stockouts. 

Big Data Analytics- The advent of big data analytics enables OSCM professionals to harness vast amounts of data effectively. Businesses can gain insights into trends, patterns, and potential blockages by collecting, processing, and analyzing data from various sources, including customer orders, production processes, and supplier performance.

Internet of Things (IoT)- IoT connects physical devices and assets to the Internet, creating a network of sensors and machines that collect real-time data. In OSCM, this technology has far-reaching implications. Supply chain visibility is greatly improved as IoT sensors track the movement and condition of goods in transit, providing real-time information about the location and status of shipments. 

Blockchain- Blockchain technology is enhancing transparency and trust in supply chain processes. It enables secure and immutable record-keeping, making it easier to track the origin of products, verify the authenticity of goods, and ensure compliance with regulations. This can be especially crucial in industries with complex supply chains needing traceability, such as the food and pharmaceutical sectors.

Preparing for a career in SCM? Here is a list of the top SCM interview questions to help you prepare.

Career Opportunities in Operations and Supply Chain Management

Career opportunities in OSCM contain various crucial roles within organizations of all sizes and industries. These roles are essential for optimizing efficiency, reducing costs, and ensuring that products and services reach customers effectively and on time.

Operations Manager: Operations managers are responsible for overseeing the day-to-day activities of a business. They coordinate production processes, manage inventory levels, and maintain quality standards to ensure smooth operations and customer satisfaction.

Supply Chain Manager: Supply chain managers play a pivotal role in coordinating the end-to-end flow of goods and services. They collaborate with suppliers, distributors, and logistics partners to streamline operations and maintain a responsive supply chain.

Production Planner: Production planners are tasked with creating schedules that align with customer demand while minimizing production costs. They optimize resource allocation and ensure efficient production processes.

Inventory Manager: Inventory managers maintain optimal inventory levels, preventing both shortages and excess stock. They ensure that businesses have the right amount of products to meet customer demands while avoiding unnecessary costs.

Quality Control Manager: Quality control managers focus on maintaining product and service quality standards. They implement processes to monitor, assess, and improve quality to meet customer expectations.

Purchasing Manager: Purchasing managers are responsible for sourcing and procuring raw materials and resources. They negotiate with suppliers, manage contracts, and assess supplier performance to secure cost-effective solutions.

Logistics Manager: Logistics managers handle the transportation and storage of products and services. They design efficient logistics solutions, optimizing routes and distribution networks.

Global Supply Chain Manager: Global supply chain managers specialize in managing complex supply chains spanning multiple countries. They navigate international regulations, customs, and geopolitical factors to ensure seamless operations.

Procurement Manager: Procurement managers focus on sourcing materials, components, and services. They negotiate contracts and evaluate supplier performance to secure the best value for the organization.


Operations and supply chain management is a critical function for any business. In the current competitive business environment, OSCM is more important than ever before. 

Businesses are facing increasing pressure to reduce costs, improve efficiency, and deliver products and services faster. This is helping businesses to achieve these goals by optimizing their operations and supply chains. As businesses continue to navigate challenges, including globalization, technological advancements, and market volatility, mastering OSCM becomes more critical than ever.

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Course Schedule

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Supply Chain Management Course 27 Jul 2024(Sat-Sun) Weekend Batch
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About the Author

With a decade-long immersion in the field of testing and as a Software Tester, Varija is well-versed in tools such as Selenium, JIRA, and various testing frameworks. Her proficiency in Testing adds value to her content writing.