SCOR Model

Description
The PPT describes about SCOR Model.

SCOR MODEL

AGENDA
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Process Reference Model SCOR Model
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What? Span it operates Limitations & Assumptions

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AT&T Wireless Services Learnings

SCOR MODEL

SCOR – MANAGEMENT PROCESSES

SCOR – LIMITATIONS & ASSUMPTIONS
Limitations
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Sales and Marketing Research and technology development Product Development Some elements of post delivery customer support
Training Quality Information Technology Administration

Assumptions
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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.
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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.

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Cash Flow cycle was 10 weeks.

AT&T SERVICES – LEVEL-1 METRICS

AT&T SERVICES – LEVEL 2
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Pre-Implementation
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Complex supply chain network
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Sourcing lead times was over 200 days for some products

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High conformance to forecast production requirements
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High forecast errors ranging from 40 – 80%

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Change in supply chain
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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
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50% improvement in gross margins by the second year of implementation Significant reduction in inventory Improvement in cash flow Improvement in delivery performance

LEARNING
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Need for fact-based analysis Identification of strategic performance advantages Top management involvement Need for continuous updation of
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Value proposition Benchmarks Refining supply chain

REFERENCES
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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



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