Review Paper

A SCOR Reference Model of the Supply Chain Management System in an Enterprise

(Irfan, Xiaofei, & Chun, 2008) Reviewed by Iqra Abdullah (MS Scholar at COMSAT Institute of Information Technology, Lahore Pakistan) The Research article that is reviewed in this paper is about structuring the Supply Chain management system through a formal Supply Chain Operational Reference Model. In this context a case study of Pakistan Tabaco Company Ltd is being discussed who is currently having a quiet similar Supply Chain system as SCOR Model. As far as the definition of supply chain management is concerned, different writers have defined the different aspects of Supply Chain but in nutshell Supply Chain management is a process of integrating every function internally in the organization and externally with the trading partners. The purpose of Supply Chain Management system is not only to decrease the cost but there are number of objectives that could be achieved through effective Supply Chain System e.g. improved communication internally and externally, removal of corporate boundaries among the stakeholders, achieving competitive advantage etc. But in practise it is seen that each party in the supply chain process is involved to maximize its own interests that results in the failure of integration plan. Therefore it is very important to adopt the modelling approach to achieve the plans. Models can be formulated for the long term (Strategic), short term (Tactical) or daily (operational) decisions in the organization. In the article different aspects of SCOR model is discussed when applied on PTC (Pakistan Tabaco Company Ltd). PTC was incorporated in 1947 immediately after the partition. Major supply chain functions of PTC is to execute internal and external processes effectively from supplier to manufacturing facility with the purpose of on time availability of products to consumers maintaining the optimal quality. Well it is not possible to apply a very perfect supply chain model but a closely related SCOR model is being implemented at PTC. SCOR consists of 4 levels. A. The first step implemented in PTC is to map the current activities in SCM and find the opportunities for improvement then map the activities of managers and find out areas for improvement. B. The second level is to identify the process categories along with the activity associated codes. C. The third level is about providing all possible information to make the supply chain process successful that may include defining processes and best practices etc. D. The fourth level is action stage which means implementing the improvements. As it is observed in the PTC, there is very less use of SAP. Although PTC can be taken as a good example of SCOR but there are number of issues that must be taken care e.g. special care must be given to the upstream movement of supplies, FIFO system must be present etc. It is concluded that SCOR is an admirable model to increase communication both within and outside industry.

Reference
Irfan, D., Xiaofei, X., & Chun, D. S. (2008). A SCOR Reference Model of the Supply Chain Management System in Enterprise. The International Arab Journal of Information Technology, 5(3), 288-295.