Many people get confused about the difference is between Supply Chain Management and Project Management. Though they may seem the same, they are very different required roles and skill sets.
Supply chain management usually involves the supply of a product from its beginning to the end consumer. Most of the time, the supply chain manager works with manufacturers or factories that are located overseas. A project manager is a manager for a specific kind of project.
Table of Contents
- What Is Supply Chain Management?
- What Is Project Management?
- Supply Chain Management Vs. Project Management
- Frequently Asked Questions
- Related Questions
A typical project that would have a project manager would be building a road or railway or constructing a major hotel or office building. In comparison, a Supply Chain Manager usually deals with delivering many of the same products and distributing them to the end consumer.
Though the Supply Chain Manager and Project Manager have some similarities, they are not the same kind of management role.
What Is Supply Chain Management?
Supply Chain Management is, as the name implies, dealing with the supply of something, usually a product, to someone. The technology company IBM defines Supply Chain Management as:
“Supply chain management is the handling of the entire production flow of a good or service — starting from the raw components all the way to delivering the final product to the consumer. A company creates a network of suppliers (“links” in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users.”
IBM
The supply chain handles the entire product life from the start of the production cycle to the end of the product delivery cycle when it reaches the end consumer. Supply Chain management usually focuses on manufacturing the product from the raw materials to when the product comes the end-user.
In short, this means Supply Chain Management includes procurement, quality control, shipment, and distribution. In many large companies, each of these specific roles is different from teams.
First, one team will specialize in procurement. Then, another team will handle quality control for the product. Next, another team will handle shipment and all the shipment documents and product import. Finally, another person will take the distribution of the product to the end consumer.
A Supply Chain Manager would need to have the skills to be able to understand all these processes. A great supply chain manager should understand the sourcing or procurement of the product, the product quality, and shipping and delivery to the end consumer.
Some may think – well, this does not seem too difficult – but the truth is that these are all very important and difficult skills to obtain. Moreover, for most industries obtaining these skills and understanding all the ins and outs of the entire supply chain take years of experience.
What Is Project Management?
Project Management is as the name implies. The manager takes on a specific project and then manages it. The APM body of professional Project Managers defines Project Management as:
“Project management is the application of processes, methods, skills, knowledge, and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Project management has final deliverables that are constrained to a finite timescale and budget.
APM Chartered Body Of Project Management Professionals
A key factor that distinguishes project management from just ‘management’ is that it has this final deliverable and a finite timespan, unlike management which is an ongoing process. Because of this, a project professional needs a wide range of skills; often technical skills, and certainly people management skills and good business awareness.”
Project management is the process by which a manager manages a specific project. This project manager looks at the project’s deliverables and ensures the project is completed on time.
Some classic examples of project management would be a project that would include constructing a railway or a road. Typically, a project manager would be assigned to manage that project and look at all the variables, such as budgets, time, materials, and everything to ensure the project could be delivered on time.
Another example is where a lot of project management is used in constructing buildings or an interior design project. The project manager would not be in charge of the design but would be the person who would implement the design for the architect or the interior designer.
Supply Chain Management Vs. Project Management
Supply chain management and project management have some similarities and many differences. The two may overlap in some areas but are very different roles and management types.
A supply chain manager will produce a product within the supply chain from the beginning to the end. The most traditional role for a supply chain manager is for a company purchasing a product from another vendor overseas. The supply chain manager then looks at all aspects of the development throughout the entire supply chain.
On the other hand, a project manager is usually a project manager for a specific project. Their job is to be able to see the project from its very beginning to its very end.
For example, a traditional role for a project manager is someone who oversees and manages the construction of a high-rise building. The project manager would look at all the building aspects and make sure that the building is constructed with the required design, quality, professional standards, and time frame.
Both roles would need to look at things like delivery and quality standards. Both the supply chain manager and the project management would have to ensure goods, and services are delivered with the quality and time required, but how these functions are applied in each of these roles would be quite different.
To be effective in both roles, a person must be very detail-oriented. This is because supply chain or project management requires looking at many details.
A person in both roles should also be someone who can work under pressure because many things can and will go wrong in supply chain management and project management. Part of what each of these managers looks at is the risk factor and budget.
To be effective in both roles, a person must also need people and technology skills. These managers need to work with all kinds of people to help ensure their product or project is delivered with the quality, quantity, and time required. In today’s world of technology, they would also need to have solid technology ]skills.
At Mondoro, being a valued part of the supply chain is essential to our business. We strive to be a reliable and valued supply chain partner with you.
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Frequently Asked Questions
1. What is the primary focus of Supply Chain Management (SCM) compared to Project Management (PM)?
Supply Chain Management primarily focuses on the flow of goods and services from suppliers to end consumers, optimizing logistics and distribution. Project Management, on the other hand, focuses on the planning, execution, and completion of specific projects, regardless of the product or service.
2. What are the key responsibilities of a Supply Chain Manager?
A Supply Chain Manager is responsible for sourcing materials, inventory management, transportation, and ensuring the efficient movement of products through the supply chain. They also handle vendor relationships and demand forecasting.
3. What are the core duties of a Project Manager?
A Project Manager is responsible for defining project goals, creating project plans, allocating resources, monitoring progress, managing risks, and delivering the project on time and within budget.
4. How do the skill sets required for Supply Chain Management differ from those needed in Project Management?
Supply Chain Managers need skills in logistics, inventory management, procurement, and supplier relationship management. Project Managers require skills in planning, communication, risk management, and team leadership.
5. Can a professional transition from Supply Chain Management to Project Management or vice versa?
Yes, professionals can transition between these roles with some effort and additional training. Transferable skills such as communication, problem-solving, and leadership can be valuable in both fields.
6. Are there specific certifications for Supply Chain Management and Project Management?
Yes, there are certifications like Certified Supply Chain Professional (CSCP) for SCM and Project Management Professional (PMP) for PM, which are widely recognized and can enhance career prospects.
7. How do timelines differ in Supply Chain Management and Project Management?
In Supply Chain Management, the focus is on continuous, often repetitive processes, while Project Management deals with temporary endeavors. SCM timelines are ongoing, whereas PM timelines are defined by project start and end dates.
8. What are the primary industries where Supply Chain Management is crucial?
Supply Chain Management is crucial in industries like manufacturing, retail, logistics, and healthcare, where efficient product or service distribution is essential.
9. In what industries is Project Management commonly used?
Answer: Project Management is used across various industries, including construction, IT, engineering, healthcare, and event planning, to oversee and deliver unique projects.
10. How does technology impact Supply Chain Management and Project Management differently?
Technology plays a significant role in improving Supply Chain Management through tools like inventory management software and demand forecasting algorithms. In Project Management, technology aids in project planning, communication, and collaboration through project management software and digital project tracking tools.
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