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

Key takeaways

• Operations management is the management of various business functions, such as production, logistics, and supply chain, that a firm needs to run effectively.

• Operations and supply chain management is the foundation of a business, ensuring your business has the products, staffing, and physical locations to grow and thrive.

• Operations management is the practice of overseeing multiple departments, establishing goals, balancing revenue and costs, and developing strategic plans.

An operations management degree can help you enter the field, with common majors including business management, business administration, or industry-specific majors like finance or law. Learn more about operations management, its importance, and how to enter this career field.

Afterward, if you want to start building job-relevant skills today, consider enrolling in the Unilever Supply Chain Data Analyst Professional Certificate. In as little as four months, you’ll have the opportunity to gain skills in data management and analysis, supply chain systems, and process improvement and optimization. By the end, you’ll have earned a shareable career credential to add to your resume.

What is operations management?

Operations management is the administration of business structure, practices, and processes to enhance efficiency and maximize 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 strategic plans

• Production, logistics, and supply chain

Why is operations management important?

Operations are the foundation of a business, including how it deals with supply chain and logistics. Profits rely on lean, efficient operations. Poor business operations can threaten a business’s survival, so processes must be optimized, the right staff needs to be employed, and physical locations must be strategic, ethical, and safe.

Watch this video from the Wharton School's Introduction to Operations Management course.

Career paths in operations management

A career in operations management can come in many forms, from general business operations roles to more niche, specialized options. Explore four operations management careers below, along with the total salary (base pay and additional compensation) you can expect to earn in each.

1. Operations research analyst

Median total salary: $133,000 [1]

Job outlook: 21 percent growth from 2024 to 2034 (much faster than average) [2]

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 modeling, data mining, and optimization techniques.

Education: A bachelor’s degree or higher

Operations research analysts are in demand. Start learning the basic skills needed for this career:

2. Business operations manager

Median total salary (US): $122,000 [3]

Job outlook: 4 percent growth from 2024 to 2034 [4]

Job description: A business operations manager makes data-informed strategic plans to improve operations.

Education: Business operations managers typically have a bachelor’s degree in business administration, finance, or management. A master's or doctoral degree in a business-related subject is typical for more senior positions.

Read more: What Is an Operations Manager? A Career Guide

3. Purchasing manager

Median total salary (US): $112,000 [5]

Job outlook: 5 percent growth from 2024 to 2034 [6]

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 have buyers or purchasing agents they manage or oversee.

Education: Typically a bachelor’s degree and relevant experience.

4. Materials manager

Median total salary: $127,000 [7

Job outlook: 5 percent growth from 2024 to 2034 [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.

Who is higher than an operations manager?

Positions higher than an operations manager include director of operations, chief operating officer, and vice president of operations. These roles involve developing long-term business strategies, overseeing quality control and production, and implementing the organization’s business plan.

How to join operations management

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

1. 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 programs 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.

2. Gain relevant professional experience.

Working in operations management typically requires about five years of relevant work experience. Get your start in an entry-level position (such as an operations assistant) or gain work experience as a buyer. Later, you can take on more senior responsibilities to build your management skills.

3. Consider pursuing a graduate degree.

In high-level roles, operations management professionals often have master's degrees or, more specifically, a Master of Business Administration (MBA) degree. MBAs focus on leadership, finance, management, and marketing, and you can opt to drill into operations with elective classes in logistics and operations.

Explore free resources for your business career

Explore career tracks, assess your skills, or take a quiz by visiting our Career Resource Hub. Then, check out these free resources as you explore a career in operations management:

• Learn about emerging trends: Future-Proofing Your Business Strategy with GenAI

• Watch on YouTube: 7 Essential Supply Chain Skills to Launch Your Career

• Read our Career Chat issue: Leadership Is for Everyone: Discover Essential Leadership Skills

Whether you want to develop a new skill, get comfortable with an in-demand technology, or advance your abilities, keep growing with a Coursera Plus subscription. You’ll get access to over 10,000 flexible courses.