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Supply Chain Operations Reference Model

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Question:

Discuss about the Supply Chain Operations Reference Model.

 

 

Answer:

Introduction

“Supply Chain Operations Reference Model (SCOR)” is identified as a framework to improve the supply process developed by Supply Chain Council (SCC). The implementation of the model allows the users to communicate and improve the overall communication process of the supply chain management practices.

Westmount Moving and Warehousing headquartered at Montreal is known for its residential moves of all sizes and distances for several businesses operating in Canada such as Pfizer Canada and Canadian Pacific Railway. Some of the main operation of the company includes local and long-distance packing and shipping, commercial moving & office Moving and Approved bonded warehouse. The application of SCOR has been done to enhance the existing supply management practices (Ntabe et al., 2015).

Discussion       

The application of the SCOR model for Supply Chain Management (SCM) allows the users to understand the process included in a business organization and discern the vital features which leads to customer satisfaction. At present the implementation process of the SCOR model comprises of five management process which includes “plan, source, make, deliver and return”. This has been subdivided into smaller process such as activities, elements and categories (Leukel & Sugumaran, 20s13). The model has allowed the organizations to examine the different configurations pertaining to supply chain. The schematic representation of the SCOR model in the context of supply chain has depicted below as follows:

Figure: Planning phase of SCOR model

(Source: APICS Supply Chain Council, 2015)

Problem in SCOR

The different types of problem pertaining to the operational aspects in “Westmount Moving and Warehousing” has been identified with time management which is responsible for the delay in the deliveries and overall warehouse space and organization.

As per the present selected organisation “Westmount Moving and Warehousing” the application of SCOR model has been able to improve the operations in the areas pertaining to “plan, source, make, deliver and return”. As per the application of the sourcing model the organisation will be able improve the overall process for procurement, receipt, delivery and transfer of raw materials. This process has been further seen to be conducted in the sub-assemblies. Henceforth, this process will be conducive for “Westmount Moving and Warehousing” in terms of sourcing of the new suppliers. The make process is considered as the main form of the transformation process which will be able to add sufficient value to the exiting services. These are seen with making local and long-distance packing and shipping, Commercial Moving & Office Moving, cross border transactions and providing free estimates to the trusted clients of the organisation (Bode & Wagner, 2015).

As the main operation of the company is also seen to be identified in the delivery process. The delivery process efficiency will be evident with the customers facing the relevant order management and fulfilment activities and which are included in the outbound logistics. In addition to this, the company is involved in the several types of the planning procedures which are duly considered with the quality assurance and following B.E.S.T. Move Quality Program.

 

Pros of Implementing SCOR Model

This program is conducive with to ensure that the development of the different services for the planning will be beneficial for tracking and measuring the performance for each aspect of the move. The industry leaders will be able to plan for relocating the personnel in various other places. The implementation process of the SCOR model needs to be understood with applying SCOR metrics. These metrics needs to be considered with delivery performance, fill Rate, perfect order fulfilment, Supply-chain response time, Order fulfilment lead time, Supply chain management cost, Cash-to-cash cycle time Inventory days of supply and Cost of goods sold Value-added productivity. The diagram listed below has depicted in terms of the measures based on reliability, cost, assets, flexibility, responsiveness and assets (Souza, 2014).

Figure 1: Level 1 Model of SCOR implementation process

(Source: Webb, Thomas, & Liao-Troth, 2014)

The aforementioned developed concept has allowed the depiction of the several types of the configurations of the process pertaining to supply chain, this is further determined with the configurations of the process chains along the different set of the parameters described with the realistic production and the process of inventory within the automotive industry. The aforementioned implementation process is further determined as a Level 1 implementation process. It needs to be also depicted that this implementation process has focused only on the short-term integration process. The important decisions for the Level 2 integration process will involve prescheduled plan and suppliers for having stock types sourcing. The level 2 integration will be able to focus on medium term integration. The containers and spare parts are produced as per the response of the IOC. The lube cut, chemicals and additives as per the prescheduled plan and the suppliers stocking their respective storages. The spare parts and the containers needs to produced in response to the orders of IOC (Qi, Huo, Wang, & Yeung, 2017).

The real application of the SCOR model is seen to be made in the several developing companies which are seen to be improving the entire supply chain. The main rationale for the success of the implementation model is evident with the manufacturing firms present with the experiences of the developed world. Several other research works has been further able to test about the standardised and widely accepted model of SCOR which has been able to enhance the overall process of illustration and evaluation of the delivery.   

Cons of Implementing SCOR Model

The main problem for the implementation of the SCOR in “Westmount Moving and Warehousing” has been only able to focus on the quality aspect thereby overlooking the other areas of the improvement. The involvement of the participation of employees from all the hierarchies is discerned as another major problem in the implementation process

Conclusion

The main discussions of the study are able to discuss on the success of the implementation process of the SCOR in Westmount Moving and Warehousing. It needs to be also noted that the implementation process will have significant benefit in terms “plan, source, make, deliver and return”. The implementation process for the SCOR model is evident with the both short term and medium-term implementation process. The delivery process efficiency will be evident with the customers facing the relevant order management and fulfilment activities and which are included in the outbound logistics. In addition to this, the company is involved in the several types of the planning procedures which are duly considered with the quality assurance and following B.E.S.T. Move Quality Program. This program is conducive with to ensure that the development of the different services for the planning will be beneficial for tracking and measuring the performance for each aspect of the move.

 

Reference List

APICS Supply Chain Council. (2015). SCOR Supply Chain Operations Reference Model ver. 11.0 quick reference quide. Apicsscc.Org. Retrieved from https://www.apics.org/docs/default-source/scor-p-toolkits/apics-scc-scor-quick-reference-guide.pdf?sfvrsn=2

Bode, C., & Wagner, S. M. (2015). Structural drivers of upstream supply chain complexity and the frequency of supply chain disruptions. Journal of Operations Management, 36, 215–228. https://doi.org/10.1016/j.jom.2014.12.004

Leukel, J., & Sugumaran, V. (2013). Formal correctness of supply chain design. Decision Support Systems, 56(1), 288–299. https://doi.org/10.1016/j.dss.2013.06.008

Ntabe, E. N., LeBel, L., Munson, A. D., & Santa-Eulalia, L. A. (2015). A systematic literature review of the supply chain operations reference (SCOR) model application with special attention to environmental issues. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2015.08.008

Qi, Y., Huo, B., Wang, Z., & Yeung, H. Y. J. (2017). The impact of operations and supply chain strategies on integration and performance. International Journal of Production Economics, 185, 162–174. https://doi.org/10.1016/j.ijpe.2016.12.028

Souza, G. C. (2014). Supply chain analytics. Business Horizons, 57(5), 595–605. https://doi.org/10.1016/j.bushor.2014.06.004

Webb, G. S., Thomas, S. P., & Liao-Troth, S. (2014). Teaching supply chain management complexities: A SCOR model based classroom simulation. Decision Sciences Journal of Innovative Education, 12(3), 181–198. https://doi.org/10.1111/dsji.12038

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