Supply Chain Operating Reference Model

Running head: SUPPLY CHAIN OPERATING REFERENCE MODEL
Research topic: Implementation of supply chain operating reference model in the FMCG
environment- Case study of ITC Limited
Name of the Student
Name of the University
Author Note

1SUPPLY CHAIN OPERATING REFERENCE MODEL
Acknowledgement
I would like to thank my principal Mr./Mrs./Ms _________________________ for giving me the
opportunity to get associated with their university for completion of my higher studies.
I would also like to share my gratitude to my mentor Mr./Mrs./Ms
_________________________ for guiding me for accomplishing my research work on the topic
Implementation of supply chain operating reference model in the FMCG environment- Case
study of ITC Limited
I am thankful to my friends, who have supported my through ups and down of the journey and
help me with my work whenever I need help.
Lastly, I want to thank my parent for their continuous support and encouragement that motivates
me to complete the research.

2SUPPLY CHAIN OPERATING REFERENCE MODEL
Abstract
This research follows on implementation of supply chain operating reference model in the fast
moving consumer goods industry that is taken into consideration is ITC Limited, which is the
largest FMCG company in India. The supply chain operating reference model is developed by
Supply Chain Council Inc. This model is usually used for the obtaining a standard language in
supply chain management process. Plan, Source, Make, Delivery and Return are the five pillars
of this SCOR model through which the advancement of the supply chain is obtained. Moreover,
SCOR Model also provides a framework for the development of operational strategy and
evaluates the best supply chain practice. The research objectives that is formulated in this
research paper are to investigate about factors that will help in implementation of an integrated
SCM model in the FMCG industry for ITC Limited, to evaluate the application of SCOR model
process in FMGC environment, to critically analyze the problems confronting the incorporation
of SCOR model in the FMCG industry.
The positivism research philosophy, deductive research approach and descriptive research
purpose is followed in this research paper. The method of analysis that is selected is both the
quantitative and qualitative data analysis method. The sample size taken in this research is 103
among which 100 are the employee associated with the operation of supply chain process while,
the rest of the respondents are the supply chain managers.

3SUPPLY CHAIN OPERATING REFERENCE MODEL
Table of Contents
Section 1 - Introduction.................................................................................................................10
1.1. Background of the study.....................................................................................................10
1.2. Rationale of the study.........................................................................................................10
1.3. Aim of the research.............................................................................................................11
1.4 Problem Statement...............................................................................................................11
1.5. Objectives of the research...................................................................................................12
1.6. Questions of the research....................................................................................................12
1.7. Structure of the dissertation................................................................................................13
Section 2 - Literature Review........................................................................................................15
2.1 Background of the company................................................................................................15
2.2 Overview of supply chain management and SCOR model.................................................16
2.2.1 Process modeling and re-engineering...........................................................................18
2.2.2 Performance measurements..........................................................................................19
2.2.3 Best practices................................................................................................................20
2.3 The concept of supply chain management in the FMCG industry......................................21
2.3.1 Internal Integration.......................................................................................................21
2.3.2 External Integration......................................................................................................22
2.4 Factors in implementation of SCOR model in the FMCG industry....................................22
2.4.1 Technological advancement in the organization..........................................................22

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2.4.2 Strong knowledge base.................................................................................................24
2.4.3 Competitive advantage.................................................................................................24
2.5 Application of SCOR model process in FMGC environment.............................................25
2.5.1 Improvement in material flow......................................................................................26
2.5.2 Streamline Information Flow........................................................................................27
2.5.3 Packaged Software Solution.........................................................................................28
2.6 Problems confronting the incorporation of SCOR model in the FMCG industry...............29
2.6.1 Improper human resource management system...........................................................29
2.6.2 Regular evaluation........................................................................................................29
2.6.3 SCOR model is not mandatory.....................................................................................29
2.6.4 Metrics related to quality are not included...................................................................30
Section 3 - Research Methodology................................................................................................31
3.1. Research philosophy...........................................................................................................31
3.1.1. Justification of the chosen philosophy.........................................................................32
3.2. Research approach..............................................................................................................32
3.2.1. Justification of the chosen research approach.............................................................33
3.3. Purpose of the research.......................................................................................................33
3.3.1. Justification of the chosen research purpose...............................................................34
3.4. Data collection process.......................................................................................................34
3.5. Data analysis techniques.....................................................................................................34
3.6. Sampling technique............................................................................................................35

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3.6.1. Sample size..................................................................................................................35
3.7. Ethical consideration..........................................................................................................35
3.8. Research limitation.............................................................................................................36
3.9. Gant Chart...........................................................................................................................36
Section 4 - Data Collection............................................................................................................37
4.1 Quantitative Questions.........................................................................................................37
4.2 Qualitative Questions...........................................................................................................51
Section 5 - Interpretation of Data..................................................................................................54
Section 6 - Conclusions.................................................................................................................58
Section 7 - Personal Reflection......................................................................................................61
Reference List................................................................................................................................64
Appendix........................................................................................................................................74
Questionnaire.............................................................................................................................74
Demographic Questions.........................................................................................................74
Quantitative Questions...........................................................................................................74
Qualitative question...............................................................................................................75

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Table of Images
Image 1: Structure of the research.................................................................................................13
Image 2: Agile, Intelligent and Intuitive Supply Chain model of ITC Limited............................16
Image 3: SCOR process implementation.......................................................................................23
Image 4: Supply chain decision categories in SCOR Model.........................................................25
Image 5: "AS IS" Geographic map of a location...........................................................................26
Image 6: "TO BE" Geographic map of a location.........................................................................27
Image 7: Enterprise Applications Domain....................................................................................28
Image 8: Types of Research Philosophy.......................................................................................31
Image 9: Types of Research Approach..........................................................................................32
Image 10: Types of Research Purpose...........................................................................................33

7SUPPLY CHAIN OPERATING REFERENCE MODEL
Table of Tables
Table 1: Gantt chart for the Research............................................................................................36
Table 2: Response on respondent’s age.........................................................................................37
Table 3: Response on respondent’s association with the organization..........................................37
Table 4: Response on implementation of SCOR system in organization......................................38
Table 5: Statistical interpretation for response on implementation of SCOR system...................38
Table 6: Response on requirement of technological advancement in implementation of SCOR
model.............................................................................................................................................39
Table 7: Statistical interpretation for response on requirement of technological advancement in
implementation of SCOR model...................................................................................................40
Table 8: Response on requirement of strong knowledge base in implementation of SCOR model
.......................................................................................................................................................40
Table 9: Statistical Interpretation for response on requirement of strong knowledge base in
implementation of SCOR model...................................................................................................41
Table 10: Response on implementation of SCOR model for obtaining competitive advantage...42
Table 11: Statistical interpretation for response on implementation of SCOR model for obtaining
competitive advantage...................................................................................................................42
Table 12: Response on obtaining improvement in material flow from implementation of SCOR
model.............................................................................................................................................43
Table 13: Statistical interpretation for response on obtaining improvement in material flow from
implementation of SCOR model...................................................................................................44
Table 14: Response on obtaining streamlines information flow from implementation of SCOR
model.............................................................................................................................................44