Description
The PPT describes about SCOR Model.
SCOR MODEL
AGENDA
•
•
Process Reference Model SCOR Model
• • •
What? Span it operates Limitations & Assumptions
• •
AT&T Wireless Services Learnings
SCOR MODEL
SCOR – MANAGEMENT PROCESSES
SCOR – LIMITATIONS & ASSUMPTIONS
Limitations
•
• • •
Sales and Marketing Research and technology development Product Development Some elements of post delivery customer support
Training Quality Information Technology Administration
Assumptions
• •
•
•
AT&T WIRELESS SERVICES
McCaw Cellular Communications: AT&T Wireless Services in 1994 • Wireless Services division: Financial losses to 20% of the revenue • Global presence was wide but not deep as only 10% of this revenue came from the global sales. • 70% manufacturing was outsourced. • Transition from B2B business model to a consumerproduct model.
• •
Problem getting the right product at the right place at the right time Huge amount of inventory in pipeline. About 3 to 4 months. Plus the product life cycle was reducing in this segment.
•
Cash Flow cycle was 10 weeks.
AT&T SERVICES – LEVEL-1 METRICS
AT&T SERVICES – LEVEL 2
•
Pre-Implementation
•
Complex supply chain network
•
Sourcing lead times was over 200 days for some products
•
High conformance to forecast production requirements
•
High forecast errors ranging from 40 – 80%
•
Change in supply chain
•
•
• •
Demand driven supply chain Usage of common components To Combine manufacturing and distribution operations located in Mexico Reduction of supplier base and strengthen the partnership with chosen few suppliers
AT&T SERVICES – LEVEL 3
Specific elements improvement. • Real time information on available to promise quantity: integration with scheduling and inventory management system • Electronic order handling • Ship complete orders • Handle 90% order on FIFO basis
AT&T SERVICES – LEVEL 4
BENEFITS - POST IMPLEMENTATION
•
• • •
50% improvement in gross margins by the second year of implementation Significant reduction in inventory Improvement in cash flow Improvement in delivery performance
LEARNING
•
•
• •
Need for fact-based analysis Identification of strategic performance advantages Top management involvement Need for continuous updation of
• • •
Value proposition Benchmarks Refining supply chain
REFERENCES
•
•
• •
•
SCOR Overview 9.0- Supply Chain Council. www.supply-chain.org Handbook on Supply Chain Management Evolving Enterprise: Volume 1-Lionheart Publishing. www.ism.ws
Thank You
doc_191768561.pptx
The PPT describes about SCOR Model.
SCOR MODEL
AGENDA
•
•
Process Reference Model SCOR Model
• • •
What? Span it operates Limitations & Assumptions
• •
AT&T Wireless Services Learnings
SCOR MODEL
SCOR – MANAGEMENT PROCESSES
SCOR – LIMITATIONS & ASSUMPTIONS
Limitations
•
• • •
Sales and Marketing Research and technology development Product Development Some elements of post delivery customer support
Training Quality Information Technology Administration
Assumptions
• •
•
•
AT&T WIRELESS SERVICES
McCaw Cellular Communications: AT&T Wireless Services in 1994 • Wireless Services division: Financial losses to 20% of the revenue • Global presence was wide but not deep as only 10% of this revenue came from the global sales. • 70% manufacturing was outsourced. • Transition from B2B business model to a consumerproduct model.
• •
Problem getting the right product at the right place at the right time Huge amount of inventory in pipeline. About 3 to 4 months. Plus the product life cycle was reducing in this segment.
•
Cash Flow cycle was 10 weeks.
AT&T SERVICES – LEVEL-1 METRICS
AT&T SERVICES – LEVEL 2
•
Pre-Implementation
•
Complex supply chain network
•
Sourcing lead times was over 200 days for some products
•
High conformance to forecast production requirements
•
High forecast errors ranging from 40 – 80%
•
Change in supply chain
•
•
• •
Demand driven supply chain Usage of common components To Combine manufacturing and distribution operations located in Mexico Reduction of supplier base and strengthen the partnership with chosen few suppliers
AT&T SERVICES – LEVEL 3
Specific elements improvement. • Real time information on available to promise quantity: integration with scheduling and inventory management system • Electronic order handling • Ship complete orders • Handle 90% order on FIFO basis
AT&T SERVICES – LEVEL 4
BENEFITS - POST IMPLEMENTATION
•
• • •
50% improvement in gross margins by the second year of implementation Significant reduction in inventory Improvement in cash flow Improvement in delivery performance
LEARNING
•
•
• •
Need for fact-based analysis Identification of strategic performance advantages Top management involvement Need for continuous updation of
• • •
Value proposition Benchmarks Refining supply chain
REFERENCES
•
•
• •
•
SCOR Overview 9.0- Supply Chain Council. www.supply-chain.org Handbook on Supply Chain Management Evolving Enterprise: Volume 1-Lionheart Publishing. www.ism.ws
Thank You
doc_191768561.pptx