Corporate Coordination: System and Operations Management vs. Logistics in MBA Programmes

System and operations management professionals are required across various sectors, including banking, healthcare, hospitality, construction, retail, and others. Recently, companies have recognised the role of a robust operations management strategy in mitigating supply chain glitches, achieving economies of scale, and expanding market presence. Consequently, organisations are actively seeking professionals with skills and experience in system and operations management to enhance business value. Students with an MBA in system and operations management possess a proactive understanding of organisational needs, enabling them to effectively manage interdepartmental activities.

On the other hand, in today's complex business structure, companies prioritise specialised competencies over generic skills. With the integration of innovative technologies like artificial intelligence, there is a growing demand for professionals who possess functional knowledge and proficiency in leveraging these technological solutions. An MBA in Logistics equips individuals with foundational knowledge and advanced concepts such as warehouse automation, reverse logistics, and cutting-edge analytical tools. Students learn the significance of procurement, lean principles, warehouse management, logistics, and inventory management in optimising supply chain operations. Let us explore each MBA specialisation and understand the key differences:

Curriculum

An MBA in System and Operations combines technical and managerial expertise, emphasising data management and incorporating technology into business operations. The curriculum equips students to handle diverse business functions like planning, manufacturing, production, and services. The degree also fosters organisational strategy, planning, and supervision abilities in students, leveraging technology to enhance productivity. Through a curriculum focused on practical delivery, students cultivate networks, meet managerial standards, and improve cost-effective practices for assessing organisational performance. Overall, the course empowers students with the competencies to efficiently manage and optimise operational facets, ensuring effectiveness, quality, and profitability. The core topics covered in the curriculum are as follows:

• Business Communication
• Business Economics
• Statistics 
• Indian Ethos and Business Ethics
• Business Law
• Financial Reporting Statement and Analysis
• Marketing Management
• Organisational Behaviour
• Indian Economic Policies and Reforms
• Operations Research
• Corporate Finance 
• Consumer Behaviour and Insights
• Human Resource Management
• Plant Design and Layout
• Six Sigma Operations

An MBA in Logistics equips students with the analytical acumen and managerial techniques necessary for overseeing the flow of products and services in an organisation. This comprehensive management programme prepares students to become proficient managers in industrial supply and chain management sectors. Its curriculum is designed to align with contemporary industry demands, focusing on skills required by businesses involved in freight, inventory management, and transportation services. Emphasising customised logistic solutions, the programme hones students' abilities to address diverse challenges such as scalability, meeting customer demands, fostering innovation in the supply chain, and ensuring service quality. The core topics covered in the curriculum are as follows:

• Principles of Management
• Financial Management
• International Business Management
• Fundamentals of Logistics
• Introduction to Shipping
• Customs Procedures
• Warehousing & Inventory Management
• Transportation & Distribution Management
• Stevedoring / Freight Forwarding & Port Operations
• Liner Trade

Industry Demand

The potential for MBA students specialising in system and operations management is extensive, particularly with the rapid expansion of e-commerce, one of India's fastest-growing industries. This growth trend has fueled a corresponding surge in blockchain adoption, enhancing project efficiency. A notable attribute of pursuing an MBA in this domain lies in its adaptability across diverse industries, thereby transcending limitations associated with singular sectors. Furthermore, such programmes allow students to ascend to leadership positions within organisational hierarchies. With the service sector demonstrating significant growth, the outlook for prospective MBA students in system and operations management appears promising. According to US News and World Report, employment opportunities within systems and operations management are anticipated to expand by 12.4% in the upcoming years.

The rapid growth of the Indian economy is driving an increased demand for skilled professionals in the logistics and supply chain sectors. According to research from a leading Indian management institute, the demand for logistics professionals in India is projected to rise by 25% by 2025. Additionally, recent data indicates that India's logistics and supply chain costs currently represent a significant portion of the GDP, amounting to $400 USD, or up to 14%. Pursuing an MBA in Logistics is an increasingly popular educational pathway for students interested in assuming leadership and managerial roles within organisations' supply chain and logistics departments. As this sector continues to expand, an MBA in Logistics will possess the necessary knowledge and skills to identify and implement solutions that can result in substantial cost savings for companies.

Career Trajectories

An MBA in System and Operations Management is an expansive field of study. This programme endows students with the competencies necessary to supervise production processes. Students can leverage their domain knowledge and expertise to align well with organisational objectives while optimising efficiency. It encompasses critical domains such as supply chain design, logistics, and supply chain management, thus equipping participants to address real-world operational hurdles effectively. The future prospects for this specialisation appear promising, presenting a plethora of opportunities for professionals to make substantial contributions within their respective organisations. Following are some promising career paths that students can pursue after their graduation:

• Store Manager: Store Managers oversee the daily operations of a retail store, including sales, customer service, inventory management, and staff supervision.
• Production Manager: Production Managers manage manufacturing processes, ensuring efficiency, quality control, and timely production of goods.
• Manufacturing Coordinators: Manufacturing Coordinators oversee various aspects of manufacturing operations, including production planning, resource allocation, and process optimisation.
• Material Manager: Material Managers manage procurement, inventory control, and distribution of materials to ensure efficient production processes and minimise costs.
• Plant Manager: Plant Managers direct and manage all operations of a manufacturing plant, including production, maintenance, quality assurance, and personnel management.

An MBA in Logistics opens doors to fulfilling careers in logistics and supply chain management. This degree caters to the growing demand for streamlining shipping processes across various sectors such as e-commerce, manufacturing, retail, FMCG, hospitality, aviation, and shipping. These industries increasingly require skilled and qualified professionals to drive efficiency and business expansion. MBA students often secure lucrative employment in industries reliant on product-based operations. This degree typically incorporates international components, equipping students to navigate global complexities and seise international opportunities effectively. Following are some promising career paths that students can pursue after their graduation:

• Logistics Manager: Logistics Managers oversee the efficient movement and storage of goods, ensuring timely delivery and cost-effective operations.
• Warehouse Operation Manager: Warehouse Operation Manager manages all aspects of warehouse operations, including inventory management, staffing, and safety protocols.
• Transportation Manager: Transportation Managers coordinate the transportation of goods, optimising routes, modes of transport, and logistics to meet delivery deadlines and minimise costs.
• Inventory Manager: Inventory Managers control inventory levels, monitor stock movements, and implement strategies to optimise inventory turnover and minimise holding costs.
• Purchasing Manager: Purchasing Managers are responsible for sourcing and procuring goods and services, negotiating contracts, and maintaining relationships with suppliers.

Way Forward

System and operations management professionals are in high demand across diverse industries due to their critical roles in cost savings, financial deals, and mitigating supply chain challenges. On the other hand, the logistics and supply chain sector is also experiencing significant growth driven by factors such as e-commerce expansion and global trade. Both specialisations offer promising career trajectories, with students poised to take up leadership roles and make substantial contributions to organisational success. In terms of career opportunities, students specialising in MBA System and Operations Management can pursue roles such as store managers, production managers, manufacturing coordinators, material managers, and plant managers. Meanwhile, students pursuing an MBA in Logistics can explore opportunities as logistics managers, warehouse operation managers, transportation managers, inventory managers, and purchasing managers. As industries continue to evolve and embrace innovative technologies, the demand for professionals with specialised competencies in system and operations management and logistics is expected to remain relevant even in the coming years.