If you are interested in a career that deals with manufacturing operations logistics and optimizing complex systems you may be debating between industrial engineering and supply chain management.
Though related in some aspects, these fields have distinct core focuses when it comes to designing processes and improving productivity
In this comprehensive guide, we’ll analyze the key differences between industrial engineering and supply chain management across various parameters. By the end, you’ll have clarity on which pathway aligns better with your skills and interests.
Let’s dive in!
An Overview of Industrial Engineering
Industrial engineering focuses on streamlining and optimizing complex systems of organization, technology, and human resources to improve productivity and efficiency.
Some primary responsibilities include:
- Designing and improving manufacturing, logistics and other operational processes
- Developing management systems to effectively organize people, materials and machines
- Analyzing system bottlenecks and identifying opportunities for increased output
- Implementing solutions like automation to reduce waste and costs
- Applying mathematical optimization models to decision making
- Conducting ergonomic studies to enhance workplace safety and productivity
Essentially, industrial engineers take a big picture view to systematically eliminate inefficiencies in an organization.
Supply Chain Management Overview
Supply chain management (SCM) deals with overseeing the flow of products, information and finances as a good or service moves through a network of entities from creation to consumption.
Key supply chain responsibilities include:
- Planning and managing the movement and storage of materials and inventory
- Coordinating and collaborating with suppliers and distribution partners
- Developing transportation and logistics networks to optimize distribution
- Designing processes for procurement, production scheduling, order fulfillment
- Analyzing supply chain data to identify issues and make improvements
- Forecasting demand and coordinatingoperations to meet changing needs
The focus is on managing relationships and interconnected processes to enable smooth end-to-end flow through the supply chain.
Key Differences Between the Fields
Now let’s analyze some major parameters to understand the differences between the two pathways:
1. Primary Focus Area
The core emphasis of industrial engineering is on improving individual organizational processes, especially manufacturing and production operations. The focus is internal to a single entity.
Supply chain management looks beyond organizational boundaries and focuses on managing the flow of goods and services across a network of entities. It takes an end-to-end external value chain view.
2. Scale of Impact
Industrial engineering optimization efforts are targeted at streamlining performance of a specific plant, distribution center or other facility. The impact is very localized.
SCM initiatives have a much broader impact by enhancing supply chain networks across multiple companies and geographies. The scale of impact is strategic and global.
3. Problem Solving Approach
Industrial engineers take a very analytical approach, relying heavily on mathematical modeling, statistical analysis and experimentation.
Supply chain professionals complement analytics with a strong understanding of relationships, processes and technology integration. There is greater emphasis on collaboration.
4. Skills Required
Key skills for industrial engineers include analytics, computer simulation, programming, optimization modeling, statistics and ergonomics.
Must-have abilities in SCM are relationship management, data analysis, logistics expertise, technology platform knowledge and end-to-end process management.
5. Technology Use
Industrial engineering relies heavily on operations research and data modeling tools for process design, simulation and improvement.
Familiarity with supply chain software like ERP, WMS, TMS and procurement systems is critical in SCM along with data visualization and analysis tools.
6. Quality Focus
Industrial engineering has a strong emphasis on product and process quality control techniques like statistical process control, six sigma and lean manufacturing.
In SCM, quality is monitored through supplier assessments and managing handoffs between partners by following established protocols and certifications.
7. Career Trajectory
Industrial engineers are well-suited for managerial roles in manufacturing, distribution, and logistics facilities in specific companies.
Supply chain professionals can rise to lead strategic SCM functions across entire organizations or become heads of supply chain in executive leadership roles.
8. Degree Programs
Industrial engineering is a dedicated undergraduate engineering program. Students take courses in operations research, quality control, ergonomics, manufacturing systems, computer simulation and process design.
SCM is offered as a specialized master’s program for engineers or business graduates. Curriculum covers sourcing, transportation, inventory modeling, procurement, logistics networks and supply chain integration.
Which Should You Choose?
Based on the differences highlighted above, here are some recommendations on which career path may be better suited to your strengths and interests:
Pursue Industrial Engineering If:
- You are very strong in mathematics, analytics, and working with data models
- You are interested in scientifically designing and optimizing processes
- Improving productivity of a single organization is your primary interest
- You prefer focusing on technical optimization rather than collaborating externally
- You want to work on-site at manufacturing facilities and distribution centers
Choose Supply Chain Management If:
- You enjoy collaborating with diverse stakeholders and managing relationships
- You have a strategic orientation and systems-level thinking
- You are interested in having a broad global impact on value networks
- You are comfortable working with enterprise technology systems
- You aim to be a strategic leader managing end-to-end business processes
In closing, industrial engineering and supply chain management offer very rewarding careers with ample growth opportunities. Evaluate your personal interests and strengths to choose the right path forward!
Supply Chain Management In 6 Minutes | What Is Supply Chain Management? | Simplilearn
Is there a relationship between industrial engineering and supply chain management?
In my research I have noticed a lot of industrial engineering majors taking jobs as supply chain managers, so there is a very close relationship between the two, but there are also fundamental differences.
What is a MS in Supply Chain Management & Industrial Engineering?
Introducing the MS in Supply Chain Management/MS in Industrial Engineering, a joint-degree program from the Joseph M. Katz Graduate School of Business and Swanson School of Engineering that combines quantitative and analytical engineering coursework with coursework in business topics.
What is the difference between supply chain engineering and supply chain management?
Although supply chain engineering and supply chain management have the same goals, the former is focused on a mathematical model -based approach, whereas the latter is focused on a more traditional management and business -based one.
How do I choose a career in Industrial Engineering and supply chain management?
If you’re trying to choose between a career in industrial engineering and supply chain management, here are some tips you can use to help you make your decision: When deciding between an engineering or a business career, think about your existing strengths. Engineering programs often place heavy emphasis on math.
