Operations Management: What Is It and Why Does It Matter?

Operations management executes backend business functions like manufacturing, inventory, and quality control to ensure market-ready products and services. Whether it’s a single operations manager or a whole department, excellent operations management helps ensure business efficiency. 

What is operations management?

Operations management administers business structure, practices, and processes to enhance efficiency and maximise profit. It refers to the management of functions that a business needs to run effectively day-to-day, including:

• Overseeing multiple departments and providing goals

• Overseeing and streamlining processes

• Balancing revenue and costs

• Developing strategies

• Working on production and logistics

Why is operations management important?

Business operations underpin all a business does, its performance, and whether it turns a profit. Poor business operations can threaten a business’s survival, so operations management must ensure that processes are efficient, the right staff are employed, equipment is fit for purpose, and the business’s physical locations are profitable, ethical, and safe. Strong operations management benefits the company as a whole. 

Working in operations management

Working in operations management as an operations manager, purchasing manager, or similar is a leadership position. Individuals in such roles oversee multiple teams or departments, combine administrative and management responsibilities, and lead day-to-day operations within the business. 

Common duties

Duties vary according to the nature of the company and the specific role, but in general, someone working in business operations is responsible for:

• Evaluating, designing, and implementing business processes

• Managing logistical processes and supply chain

• Overseeing production, distribution, and quality assurance

• Managing and analysing financial budgets

• Making strategic decisions and engaging with other senior staff members on business strategy 

• Supervising employees

• Supporting HR with recruitment initiatives

• Building relationships with stakeholders and suppliers

Skills

Working in operations management requires a variety of skills, including:

• Leadership ability

• Organisational skills 

• Interpersonal skills

• Problem-solving ability

• Process improvement

• Project management

• Financial acumen

• Business acumen

• Detail-oriented approach

• Communication skills

• Decision-making ability

• Excellent time management 

Career paths in operations management

A career in operations management can come in many forms, from general business operations roles to more niche, specialised options. 

Business operations manager

Average base salary (UK): £41,060 [1] 

Job outlook: As technology advances and global business competition and supply chains increase, experts anticipate the global demand for business operations managers will increase by around 30 percent over the next four years [2].  

Job description: A business operations manager is an all-encompassing role in businesses of all sizes. This role often acts as an internal consultant, advising different departments to help the company manage its resources effectively and lower costs. Business operations managers make data-informed strategic plans to improve operations. 

Education: Most employers prefer candidates for business operations manager positions with degrees, such as a master’s degree or at least a bachelor’s in business. Additional training in project management or specialised operations management certifications can be valuable. 

Experience: Starting in an entry-level role and working your way up is common, as experience is considered important in attaining this position. Developing business knowledge is essential to understanding business functions and making improvements. Because management experience is crucial for this role, business operations managers should have at least five years of experience before taking on this job. The salary for a business operations manager can rise to £63,000 or more for highly experienced employees [1]. 

Purchasing manager

Average base salary (UK): £35,758 [3] 

Job outlook: Working Future UK predicts the UK will need 72,553 purchasing managers in 2027, a marked increase from 69,249 in 2023 [4]. 

Job description: A purchasing manager buys products, goods, and services for resale by their company. Their job is to secure the best and highest quality products at the lowest price to sell and make a profit. A purchasing manager will likely oversee or manage buyers or purchasing agents. 

Education: People in this position usually have at least a bachelor’s degree and relevant experience. 

Experience: Usually, purchasing managers work their way up from a role such as a buyer or spend time working in procurement and, with knowledge and time, land a management position. The salary for a purchasing manager can rise to average highs of £52,000 [3].

Materials manager

Average salary: £38,366 [5]

Job outlook: Although official statistics are not available, a quick look at job listings on LinkedIn reveals approximately 4,000 open positions as of December 2022 [6]. 

Job description: A materials manager is responsible for procuring, storing, and distributing a company's inventory and stock. They research prices, monitor stock levels, and negotiate prices and contracts. 

Education: Materials managers (or procurement managers) typically have a bachelor's degree in a relevant subject, such as logistics or business administration, and work experience in the field. 

Experience: Some positions will ask for management experience, but this is not a blanket requirement and will depend on the company. The salary for a materials manager can rise above £50,000 [5]. 

Operations research analyst

Average salary: £27,000 [7]

Job outlook: Across the pond, America considers this one of the fastest-growing jobs this decade [8], suggesting sustained global demand.

Job description: Operations research analysts help companies make important decisions about cost-effectiveness, staff resources, supply chain, and product placement through high-level statistical analysis and mathematical modelling, data mining, and optimization techniques. 

Education: A bachelor’s degree or higher 

Experience: Work experience and completion of additional courses to demonstrate knowledge and expertise in maths and computer science

How to become an operations management professional

The guide below offers steps to follow to start your career in operations management. It includes on-the-job experience, education, and professional certifications to consider to help you stand out.

Consider a bachelor’s degree.

Jobs in operations management typically require a bachelor's degree in a business-related subject such as business management or business administration. These programmes focus on relevant subjects like finance, business management, economics, business communications, and logistics. Another option is a bachelor's degree in an industry, such as economics, finance, or the law. 

Gain relevant professional experience.

Working as an operations manager typically requires about five years of experience. Get your start in an entry-level position, such as an operations supervisor, or by gaining work experience as a buyer and taking on more senior responsibilities to build management experience. 

Consider pursuing a postgraduate degree.

In the highest level roles, operations management professionals often have master's degrees or, more specifically, a Master of Business Administration (MBA). MBAs focus on leadership, finance, management, and marketing, with some offering specialist classes in logistics and operations. 

Advance with certifications and certificates.

Additional qualifications in operations management indicate a deeper knowledge of your subject area and a higher level of proficiency, which can increase your job prospects. Several options are available at various levels, from the undergraduate to the postgraduate level, and those with no educational requirements. 

Undergraduate-level certificates offer basic knowledge in the field, such as using management software. Postgraduate-level certificates go deeper and build on a bachelor’s degree with skills like leadership in a corporate environment and process improvement. 

Certifications with few or no educational requirements are wide-reaching. They include popular options such as the Certified Business Professional (CBP), offered by the International Business Training Association, and the Certified Purchasing Professional (CPP) from the American Purchasing Society.

Next steps

If you are interested in a career in operations management and would like to learn more, especially as it applies to supply chain management, consider taking Supply Chain Operations is part of the supply chain management offered by Rutgers University.