Research: SCOR Model Implementation in FMCG Environment, ITC Limited

This research project investigates the implementation of the Supply Chain Operating Reference (SCOR) model within ITC Limited, a major fast-moving consumer goods (FMCG) company in India. The study explores the application of the SCOR model, which encompasses the Plan, Source, Make, Deliver, and Return processes, to enhance supply chain efficiency. The research aims to identify factors crucial for successful SCOR model implementation, evaluate its processes in the FMCG environment, and analyze challenges encountered during integration. Employing a positivism philosophy and a mixed-methods approach, the study analyzes both quantitative and qualitative data collected from employees and managers. The findings address technological advancements, knowledge base requirements, competitive advantages, material flow improvements, information streamlining, and the impact of packaged software solutions. Additionally, the research identifies key challenges such as human resource management issues and the absence of quality metrics, offering insights into the complexities of SCOR model implementation in a dynamic FMCG setting. The project includes an extensive literature review, detailed methodology, data collection, interpretation, and conclusions, along with tables, charts and images to support the analysis.

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

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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.

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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.

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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

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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

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Table 15: Statistical interpretation for response on obtaining streamlines information flow from
implementation of SCOR model...................................................................................................45
Table 16: Response on combination of packaged software solution and SCOR model for greater
productivity....................................................................................................................................46
Table 17: Statistical interpretation for response on combination of packaged software solution
and SCOR model for greater productivity.....................................................................................47
Table 18: Response on improper human resource management system as an issue in
implementing SCOR model...........................................................................................................47
Table 19: Statistical interpretation for response on improper human resource management system
as an issue in implementing SCOR model....................................................................................48
Table 20: Response on regular evaluation as an issue in implementing SCOR model.................48
Table 21: Statistical Interpretation for response on regular evaluation as an issue in implementing
SCOR model..................................................................................................................................49
Table 22: Response on irrelevant implementation of SCOR model..............................................50
Table 23: Statistical interpretation for response on irrelevant implementation of SCOR model. .50

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Table of Charts
Chart 1: Response on implementation of SCOR system in organization......................................38
Chart 2: Response on requirement of technological advancement in implementation of SCOR
model.............................................................................................................................................39
Chart 3: Response on requirement of strong knowledge base in implementation of SCOR model
.......................................................................................................................................................41
Chart 4: Response on implementation of SCOR model for obtaining competitive advantage.....42
Chart 5: Response on obtaining improvement in material flow from implementation of SCOR
model.............................................................................................................................................43
Chart 6: Response on obtaining streamlines information flow from implementation of SCOR
model.............................................................................................................................................45
Chart 7: Response on combination of packaged software solution and SCOR model for greater
productivity....................................................................................................................................46
Chart 8: Response on improper human resource management system as an issue in implementing
SCOR model..................................................................................................................................48
Chart 9: Response on regular evaluation as an issue in implementing SCOR model...................49
Chart 10: Response on irrelevant implementation of SCOR model..............................................50

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Section 1 - Introduction
1.1. Background of the study
The Supply–Chain Council (SCC) has been developed the supply chain operations
reference – model (SCOR) for managing supply chain of business more effectively (Estampe et
al. 2013). The major purpose for which the SCOPR model is developed is to improve, address
and establish an efficient communication within a company and with supplier (Cirtita and
Glaser-Segura 2012). Businesspeople utilizes this model for satisfying the customer’s demand
and explain the process of entire supply chain along with the approach through which it can be
improved further. Liu et al. (2014) also stated that the SCOR model emphasizes on five aspects-
plan, source, make, deliver, and return. This research focuses on a fast-moving consumer goods
(FMGC) organization in India, where people get inexpensive products like food items,
consumers good and toiletries that customers uses on a regular basis. Schönsleben (2016)
describes that since the demand of these consumer products is high in India and people buy at
regular periods, supply chain plays a crucial role for providing them the required material. The
reason why people’s demand is high for these products are emergence of modern retail
dimensions, changing customer preferences and growing rural spend tendency (Ntabe et al.
2015). Moreover in recent times, online platform is also introduced in order to supply good
directly to the customers. Thus, communication among the suppliers and organization’s
management is important and for enhancing the existing system supply chain operations
reference – model (SCOR) is developed and utilized. This research thus highlights the
implementation of supply chain operating reference model in the FMCG environment.

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1.2. Rationale of the study
In fast moving consumer goods, management in demand and supply planning is required
so that the resources with requirements can be balanced. Organization now a days have to focus
on sourcing infrastructure and material acquisition so that inventory can be maintain properly
and there will be no shortage of products compared to demands. Elgazzar et al. (2012) stated that
if all the mentioned aspects cannot be managed properly, it is not possible for manufacturing
industry or a FMCG industry to handle make-to-order, make-to-stock or engineer-to-order
procedure. Organization may also face problem in handling supplier payments, production
activities, packaging and billing of products. Especially in FMCG industry, there is lot of
competition in India. There are many local companies as well as foreign brands, which targets
same demographics. This is the reason these organizations have to develop their supply chain
management more efficiently. However, problem arises when a new system like SCOR models
is implemented in organization’s operation. This is another problem that delays the supply chain
process and customer might not get their desired products and they purchase the same products
from other organization. This research thus highlights the implementation of supply chain
operating reference model in the FMCG environment.
1.3. Aim of the research
Some organization faces difficulty in incorporating new technology of decisions due to
lack of knowledge in stakeholders concerning the new system or incompetence of the
organization to utilize the technology for greater productivity. Kocaoglu et al. (2013) stated that
not only in case of delivering the products to the customer but in product case also supply chain
has to be efficient enough so that accurate details can be shared. The aim of the research is to
highlight the implementation procedure of supply chain operating reference model in a FMGC
environment.

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1.4 Problem Statement
Every organization intends to develop a standard vocabulary and a notation so that the
process of supply chain adopted by them can be defined in the market. Palma-Mendoza (2014)
define that with an effective supply chain management systems, an organization has to focus on
their inventory management, communication among the suppliers, timely delivery of the
products, quick return facility of the wrongly delivered products. In addition to that, these
industries also have to define their supply chain process to top, configuration and process
element. Thus, an effective system has to be incorporated in the organization so that the
weakness and threat concerning supply chain can be identified apart from the opportunity and
advantage that organization receives from the effective system. One process through which all
these mentioned products are described is SCOR model. Kurien and Qureshi (2012) furthermore
portrays that SCOR model also helps an organization to develop new designs and help in
selecting best way to implement the changes in existing technology. The implementation process
and its advantages in FMGC companies are hence descried in this research study.
1.5. Objectives of the research
 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
 To recommend a process to improve the effectiveness of the integrated supply chain
competitive model in ITC Limited

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Section 1: Introduction
Section 2: Literature Review
Section 3: Research Methodology
Section 4: Data Collection
Section 5: Data Analysis
Section 6: Conclusion
Section 7: Personal Refection
1.6. Questions of the research
 What are the factors that will help in implementation of an integrated SCM model in the
FMCG industry for ITC Limited?
 How SCOR model process in FMGC environment is implemented
 What are the problems FMCG industry is confronting due to incorporation of SCOR
model in the
1.7. Structure of the dissertation
Image 1: Structure of the research
(Source: Created By Author)

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Section 1 comprises of the details of the research study background, rationale of the study, the
rationale that explain why this research is necessary. This section of the research study also
contains the research aim, research objectives and research question.
Section 2 highlighted the literature review part that comprises of the theories and concepts that
address the research objectives. This section is developed from the most relevant research
contents researched by other scholars in the same field.
The third section comprises of the research methodology that is focused on the research methods
through which research data is collected.
The fourth section highlighted the collected data of the research question that is formulated.
Graphical representation on the obtained response is also illustrated in this section.
The fifth section describes the result that is obtained from the collected data.
The sixth section is the concluding section through which the research objectives are addressed
both by aligning the developed literature review and data analysis method.
The last and the seventh section represent the personal reflective in which the personal
experience is descried regarding the entire research journey. The process of researching about the
topic, approaches for collecting the data and how the research help in knowledge enhancement is
also described.

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Section 2 - Literature Review
2.1 Background of the company
ITC Limited or Imperial Tobacco Company of India Limited is an Indian conglomerate
and perform five business aspects- Hotels, Agri Business, Information Technology, Paperboards
and Packaging and Fast-Moving Consumer Goods (FMCG) (Itcportal.com 2017). ITC is one of
India’s most Admired and valuable companies with the market capitalization of Rs. 3.2 lakh
crore in the year 2017 (Itcportal.com 2017). The concerned organization has also a firm presence
in global market. This can be witnessed by their global annual revenue of US$ 8 billion in which
around 58% of the revenue from non-cigarette segments (Itcportal.com 2017). There are more
than 32,000 people directly employed under ITC Limited (Itcportal.com 2017). In terms of
supply chain management, their inbound logistics, farmers proceeds to the ITC procurement hub
that is nearest to them. Peng et al. (2016) also depict that some of the procurement hub are
involved in a complete warehouse operation. Moreover, their supply chain management also
follows an agile, intelligent and intuitive supply chain process. The four important elements are
the resilience, design-and-optimization, integrated planning and execution (Gonzalvez-Gallego et
al. 2015).

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Image 2: Agile, Intelligent and Intuitive Supply Chain model of ITC Limited
(Source: Gonzalvez-Gallego et al. 2015)
The element resilience emphasized on the logistic visibility, performance management,
control power and factory analytics. Secondly, the design-and-optimization element focuses on
network design and optimization, Multi Echelon inventory optimization and optimization in
transportation planning. Thirdly, the element integrated planning focuses on demand planning,
Sales and operations planning (S&OP), supply planning and production planning along with
products and delivery scheduling. Lastly, the element ‘execution’ highlights the functions of
transportation management, warehouse management and global trade management.
2.2 Overview of supply chain management and SCOR model
In the year 1982, Keith Oliver, a consultant from Booz Allen Hamilton coined the term
supply chain management for the first time (Liu et al. 2014). This management procedure is
operated specially for the planning, implementing and controlling the approaches of the products
that is supplied to the customer. FMGC industry associated with direct end users and this

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industry get influenced by the consumer’s related choices, dislikes, seasonality, demography and
brand marketing. Georgise et al. (2012) also stated that the volume of the products and the
marketing of these goods are done n larger among in FMCG organization compared to the other
organization. So et al. (2012) furthermore stated that supply chain management in FMCG is
evolved through various phases and comprises of store keeping, purchasing, material
management, logistics and integrated materials management. However, the effectiveness of the
supply chain process is measured through its reliability, responsiveness and flexibility of the
system through which the products is supplied to the end-users. Medini and Bourey (2012) on
the other hand depicted that supply chain is defined as a set of organizations that relates multiple
upstream and downstream flows of the gods so that the user’s demand can be fulfilled. There are
several stakeholders associated with the supply chain management system like- transporters,
warehouses, retailers and customers (Salazar et al. 2012). There are five basic of the supply
chain management- planning, sourcing, making, delivery and returning of the products.
In order to manage a unique and universal way to handle the supply chain management
procedure, Supply Chain Council has developed supply-chain operations reference model. This
model can describe the business activities that are taken for satisfying the need of the customers
more effectively and fast. The model is used to analyze the present state of a company's supply
chain processes, to quantify the operational performance and to compare the performance of an
organization with that of the other (Sellitto et al. 2015). Boukherroub et al. (2015) also depicted
that the SCOR model is also used address, improve, and communicate the practices adopted for
enhancing the supply chain management within all the stakeholders. The concerned model is
based on three pillars- process modeling and re-engineering, performance measurements and best
practices.

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2.2.1 Process modeling and re-engineering
 Plan- An organization needs to plan their supply chain procedure s that they can cover
their entire target customer. The planning also involves how that organization utilizes all
their resources to implement the supply chain procedure. Spina et al. (2013) highlight
that an effective plan can be witnessed through how well the available resources are
balanced with the user’s requirement. On the other hand it is also important for the
managing authority to align the supply chain plan with the financial plan.
 Source- Rotaru et al. (2014) stated that not all products are delivers to the end customers
and thus suppliers are needed to deliver the goods and services. This phase of the supply
chain management involves formulating set of pricing, the process for delivering the
products and the payment process with the stakeholders like suppliers. This process also
deals with monitoring the relationship with its stakeholders and take effective steps for
improving the relationship.
 Make- This step highlights the development of planned products through their
manufacturing process. Georgise et al. (2013) stated that supply chain managers evaluate
the process for production, testing of the products, packaging of the completed items and
its delivery to the final users. Depending on the type of industry, an organization assess
whether or not the process should be make-to-order, make-to-stock or engineer-to-order
(Long 2014).
 Deliver- This is one of the most crucial step in the supply chain process in FMCG
industry. Pettersson and Segerstedt (2012) stated that order management, warehousing
and transportation are the three essential elements of the delivering process. The order is
received from the organization and an invoice is generated for the customers. The invoice
is handed over to them once the products are delivered to them. In recent times, online

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process has been started for accomplishing these products (Meyr et al. 2013). In such
case, the entire process is handled through digital platform. Ainapur et al. (2015) portray
that the management of the final products, inventory management, assets, products
transportation and product life cycles along with the import and export of those products
are some major aspects of the delivery process.
 Return- Bigliardi and Bottani (2014) also stated that an organization have to be prepared
that customer might not like the product that they are purchasing. So, according to the
demand of the customer’s, organization has to handle the return of the products,
transportation and product life cycles.
2.2.2 Performance measurements
Pettersson and Segerstedt (2012) stated that this aspect comprises of some key indicators
that is utilized to evaluate the performance of the supply chain management. This model is
planned in the hierarchical structure and comprises of three levels.
 Level 1- The panning of the implementation of the best supply chain practices is taken by
the high level managers. Long (2014) stated that these managers are liable to identify the
performance of the overall supply chain process.
 Level 2- In this step, high level measures that may cross multiple SCOR processes.
 Level 3- This hierarchy is not related to the SCOR model and handle all the aspects that
is supported and influenced by the concerned model. Georgise, Thoben and Seifert
(2013) stated that the satisfaction level of the customer, the return rate of the customer
and the overall efficiency measurement is the major thing to focus in this aspect.

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2.2.3 Best practices
Salazar, Caro and Cavazos (2012) stated that an implemented process needs to be
regularly evaluated so that gaps in the existing supply chain management process can be
identified. Medini and Bourey (2012) furthermore stated that not only the gaps has to be
identified, the best way to overcome the gaps should also be identified in order to maintain the
effectiveness of the supply chain management process. The SCOR model defines a best practice
if four aspects are defined clearly- current, structured, proven and repeatable method.
 Current
This process evaluated the existing system and the process of taking orders from
the customers, evaluating their order, checking whether or not the demanded products is
in the inventory, generating the invoice regarding the order and finally the delivery of the
products. Ntabe et al. (2015) stated that not only the organization evaluates its
performance but the performance of the competitor organization is also taken into
consideration. This procedure helps the organization to identify what are the areas in
which they have to improve.
 Structured
This aspect deals with the clearly stated goal, scope, process, and procedure
concerning the supply chain management system. Sellitto et al. (2015) describes that the
goal should be specific and can be obtained. Taken for instance, the goal can be targeting
vast population through the effective supply chain model. On the other hand, Long
(2014) portrays that scope measures the ability of the organization to obtain the desired
goals. The measure of the financial ability, technical advancement and the talent of the
employees need to be evaluated to decide whether or not the company can fulfill their
desired goals. The process resembles to the planning through which the goal is planned to

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achieve. The procedure on the other hand demoted that practice has been proven in
multiple environments and the success that is achieved by incorporating the planned idea. Proven
The organization often set some milestone in order to achieve the planned ideas
regarding the advancement of the supply chain management process. Repeatable
Liu et al. (2014) stated that some process is applicable in multiple environments
and this process identifies all those processes. Managing authority intends to identify
such process so that better productivity can be attained and customers can be satisfied
more.
2.3 The concept of supply chain management in the FMCG industry
Integration plays a crucial role in effective supply chain management as it companies two
or more process to fulfill the user’s demand. Diehl and Spinler (2013) stated that effective supply
chain integration leads to enhanced operational performance. The process of integration comes
from the global competition and to target large demographics. This integration can be obtained
through- internal integration and external integration.
2.3.1 Internal Integration
Collaboration, coordination and cooperation are the important factors that are involved in
the process of internal integration. Craggs (2013) stated that internal supply chain refers to the
chain of activities that is performed within the organization. These kinds of functions are sales,
production, and distribution. The internal stakeholder communicate with each other and share the
knowledge like how many customer order the things, the products available in the inventory and
the process through which the supply is to be made.

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2.3.2 External Integration
Mbhele (2012) depicted that when the organization work with external stakeholder like
customers, third party provider and suppliers, it is known as external integration. Panuganti
(2012) highlight one advantage of adapting external integration is that competitive advantage can
be attained as the best of the suppliers is utilized for the supply chain process and bring about an
adequate flow of supplies.
2.4 Factors in implementation of SCOR model in the FMCG industry
2.4.1 Technological advancement in the organization
So et al. (2012) stated that prior implementing a technology in the organization, it is
important to measure the competency of the company. This is required as today’s fast-evolving
business landscape leads to frequent technology purchase decisions. These decisions moreover
no longer are exclusive to the finance department and IT department. Shukla et al. (2012) also
mentioned that in evaluating the existing platform, marketers think about the benefits that their
organization will get. Furthermore, the technological support that is required for implementing
the new technology is also important to evaluate. Pieriegud (2015) stated that SCOR model
comprises of different level.

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Image 3: SCOR process implementation
(Source: Pieriegud 2015)
The first level is the main source that supports the entire model. However, the major
operation stated from level 2 or sub-process. The technological support is required for this step
have to consider four aspects- make- to- order, make- to- order, engineering- to- order and retail
product. The third level focus on the scheduling of the stocked products that consumer demands
and then finally ends with the delivery of the products to the destined location. This level can be
supported by the technology like POS products that can accurately measure the quantity and
volume of the ordered products. Several technology is also used for verify the stocked products,
transfer of those products and the authorizing the supplier payments. Baraniecka (2013) highlight
that the level four is optional and is incorporated for checking the pending orders, contact
process with supplier and then confirming the schedule along with the return process of the
products. The company is thus liable to evaluate whether their company is competent for
adapting these technology.

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2.4.2 Strong knowledge base
Mandaza et al. (2012) portrays that there are staffs, who are responsible to utilize
implemented technology also plays a crucial role in successful SCOR model implementation.
The knowledge regarding the new technology and the benefits that their organization will get
from the technology should be knowledgeable to the staffs. Thus, organization should also
organize training program to make aware their staffs concerning the model and the utilization of
the technology for every level. Thus human resource is also responsible to select talented staffs
for their organization and to organize training programs.
2.4.3 Competitive advantage
Lastly, the factors that is important for implementing the SCOR model in the
organization is to obtain competitive advantage. The SCOR model is help the organization to
obtain some performance attribute like- supply chain delivery reliability, supply chain
responsiveness, supply chain agility, supply chain costs, supply chain asset management
efficiency (Siham et al. 2015). These metrics offer an organization the advantage of extra-
ordinary accurate delivery performance, perfect order fulfillment, fulfillment lead time of the
order, low supply chain response time, reduced supply chain management costs, effective returns
processing costs and efficient cash- to- cash cycle time (Ganji Jamehshooran, Shaharoun and
Norehan Haron 2015). All these aspects provide great supply chain management process and
organization can obtain competitive advantage as their productivity increases. The inaccuracy in
the object delivery also gets reduced which also leads to the greater customer satisfaction.
Jothimani and Sarmah (2014) furthermore stated that in order to analyze the competition
using SCOR metrics, organization conduct SWOT analysis, which is the most convenient
method that reveals problem from the human perspective concerning the implemented
technology. Arif-Uz-Zaman and Nazmul Ahsan (2014) also depicted that managing authority

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also capture current performance and find the gap based on SCOR metrics so that future steps
can be taken for overcoming the gaps.
2.5 Application of SCOR model process in FMGC environment
According to Balfaqih et al. (2016), the application on SCOR model is used for y supply-
chain management planning decision categories. This category emphasizes on operations
strategy planning, production planning and scheduling, demand management, procurement,
promise delivery, balancing change, and distribution management. Asif nd Ohdar (2015) on the
other hand highlighted that the process of the procurement along with production planning and
scheduling are considered for both internal and supplier SCOR decision area. Senvar et al.
(2014) moreover added that the decisions span across both internal and customer decision areas
is represented through demand and distribution management aspects.
Image 4: Supply chain decision categories in SCOR Model
(Source: Lockamy III and McCormack 2004)

26SUPPLY CHAIN OPERATING REFERENCE MODEL
2.5.1 Improvement in material flow
Lockamy III and McCormack (2004) stated that in the SCOR model the material flow
will be captured by the supply chain mangers. This material flow is mapped so that the location
where the delivery is to be made can be captured. This mapping is known as "AS IS" Geographic
map (Estampe et al. 2013).
Image 5: "AS IS" Geographic map of a location
(Source: Estampe et al. 2013)
Chae and Olson (2013) furthermore highlight that the "AS IS" geographic map
sometimes needs to be altered and supply chain managers redesign the material flow map. This
amp is called as "TO BE" geographic map. The approach is taken so that any previous gaps can
be overcome so that the product delivery can be accurately done. Kurien and Qureshi (2012)
argued that this process results in some adversity like relocation of distribution warehouses and
removal of non-value added facilities. In this change process, some operation of the warehouse is
also changed depending on the demands of the public and the transportation condition in the new

27SUPPLY CHAIN OPERATING REFERENCE MODEL
location of the warehouse. Taken for instance the activity “M1” is the value-added activities that
is included in the warehouse operations.
Image 6: "TO BE" Geographic map of a location
(Source: Estampe et al. 2013)
Lastly, the newly formulated "TO BE" geographic map is transferred to "AS IS" thread
diagram so that the planned supply chain process can be finalized. Stentoft Arlbjørn and Lüthje
2012) also stated that this application can also be used in different department in the same
company. In this way, supply chain process can be evaluated for the entire organization.
2.5.2 Streamline Information Flow
SCOR model is used to evaluate the streamline information flow in which the final
developed mapping is transferred into "AS IS" swim lane diagram. This diagram also used for
identify the requirement of the customers followed by identification of the resources, balancing
the resources, planning the required sources, scheduling the delivery, receiving the products,
verify the products. The streamline flow diagram also illustrates transfer of the products and then

28SUPPLY CHAIN OPERATING REFERENCE MODEL
authorizes for supplier payments. McCormack and Johnson (2016) stated that to identify the
product requirements, a production planning team is formulated with a marketing team. This
results in effective demand planning phase and to schedule each products at the right time and
right quantity inside a planning time fence.
2.5.3 Packaged Software Solution
Image 7: Enterprise Applications Domain
(Source: Gulledge et al. 2001)
The SCOR model is also applied in maintaining the transactional/back office operations,
execution, planning and strategic decision-making. This process thus aligns the FMGC’s
operation with the e-business platform. This helps the organization to handle their online
shopping business and maintain the process of delivery directly between company and users.
Gulledge et al. (2001) also stated that in recent times, the marketers included execution and
planning functionality of the entire supply chain process within their systems. Rezaei et al.

29SUPPLY CHAIN OPERATING REFERENCE MODEL
(2017) highlighted the advantage that in this way, information became more centralized and at
the same time business processes became increasingly standardized.
2.6 Problems confronting the incorporation of SCOR model in the FMCG industry
2.6.1 Improper human resource management system
SCOR Model needs a lot of input from the staff of the organization. This process is
necessary because staffs have to manage the technology for fulfilling the organization’s needs.
Genovese et al. (2014) stated that some employees struggle with the thought of career
opportunity, problems about compensation, lower productivity and job satisfaction. These
problem results in poor brainstorm/process redesign session.
2.6.2 Regular evaluation
Supply chain managers are liable to evaluate the performance of the organization and the
level of increased productivity. Hafeez et al. (2017) stated that this approach will help in getting
more information from the end users. Managers have to formulate a survey questionnaire and a
check sheet on a regular basis concerning the SCOR model that need some of the time that can
be utilized in core business functions.
2.6.3 SCOR model is not mandatory
Cano-Olivos et al. (2014) argued that small enterprises do not implement this model due
to high maintenance cost and investment of time. Moreover, through this model retrieving the
cost data and customer/supplier profile is difficult if the record maintenance and acceptable level
of accounting standard is not properly aligned. These results in inaccurate data sharing that may
leads to poor customer satisfaction. Alomar and Pasek (2014) moreover stated that in case of
small enterprises, competitor analysis cannot be evaluated as not all such enterprises utilizes the
same technology.

30SUPPLY CHAIN OPERATING REFERENCE MODEL
2.6.4 Metrics related to quality are not included
One of the biggest drawbacks of the SCOR model is that it only focuses on the quality
and volume of the products that can be measured physically. However, details about quality
cannot be assured by applying this model. Thus, Sari et al. (2014) argued that this model is not
reliable for quality related issue and human force is needed to be incorporated.

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Research Philosophy
Positivism InterpretivismRealism
Section 3 - Research Methodology
3.1. Research philosophy
Mackey and Gass (2015) stated that research methodology deals with the source of the
knowledge and its nature and development stages. Research philosophy also plays a role in
formulating the beliefs and assumptions of the research questions. There are three kinds of
research philosophy- positivism, realism and interpretivism. Taylor et al. (2015) stated that in
positivism research philosophy, the data are highly structured and large sample sizes are
considered. This method is used in both quantitative and qualitative research studies. On the
other hand, realism research philosophy is chosen for smaller sample size. This method is based
on social belief on the research topic. Lastly, interpretivism research philosophy is the mixture of
both the positivism and realism research philosophy and focuses on small samples and in-depth
analysis on the research topic.
Image 8: Types of Research Philosophy
(Source: Created by Author)
In this research positivism research philosophy is utilized.

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Research Approach
Deductive Inductive
3.1.1. Justification of the chosen philosophy
The research study is focused on positivism research philosophy as the sample size is
taken is large and genuine answer is collected for the research question rather than the social
believed facts. This method is selected so that biasness regarding the research question can be
avoided.
3.2. Research approach
Silverman (2016) stated that research is based on some theories and concepts that is
intended to be carried out at the end of each research study. There are two types of research
approach- deductive research approach and inductive research approach. Flick (2015) explains
that in deductive approach, it is assumed that when the premises are true, the research conclusion
must also be true. On the other hand, in deductive approach known premises are used in order to
formulate new and untested conclusion. Neuman and Robson (2014) on the other hand describes
that in deductive approach, data collection is used to evaluate the formulated hypothesis or
research objectives; while, on the other hand, data collection in inductive approach explores a
procedure through which new pattern and themes are identified.
Image 9: Types of Research Approach
(Source: Created by Author)
In this research study, deductive research approach is used.

33SUPPLY CHAIN OPERATING REFERENCE MODEL
Research Design
Explanatory Descriptive
3.2.1. Justification of the chosen research approach
In this research, only some research objectives are considered and these objectives are
planned to explain through the theories and concept mentioned in the literature review.
Moreover, since the previous theories and concepts are considered, the research will be
supported by previously carried out research by other scholar.
3.3. Design of the research
The principle of the research purpose is to highlight the way through which research
question is answered. Panneerselvam (2014) stated that research designs are of two types-
exploratory and descriptive research purpose. In explanatory research, generation of the insights
about a situation or the research topic; on the other hand, descriptive research design verifies the
insights and aid in selecting a course of action. The data collected in a structured way when
followed by descriptive purpose; while, open-ended collection process is used in case of
exploratory.
Image 10: Types of Research Design
(Source: Created by Author)
In this research study, descriptive research design is utilized.

34SUPPLY CHAIN OPERATING REFERENCE MODEL
3.3.1. Justification of the chosen research design
The data collected for the research is in structured form which has helped to obtain all the
research objectives. Thus, these clear data that is collected is utilized to answer all the research
question that is what are the factors that will help in implementation of an integrated SCM model
in the FMCG industry for ITC Limited, how SCOR model process in FMGC environment is
implemented and what are the problems FMCG industry is confronting due to incorporation of
SCOR model. Thus, descriptive research purpose is the relevant method to use. Thus the
collected data from primary sources is able to answer all the research questions as the
respondents responds to each question based on their knowledge regarding the SCOR model and
can utilize the knowledge to answer whether or not the implementation of the model is beneficial
and what factors should be considered for implementing the model in an FMCG environment.
3.4. Data collection process
Smith (2015) stated that data for the research is gathered through two sources- primary
and secondary. The data collected from the primary sources like directly to the respondents is
known as primary data. On the other hand, data collected from the secondary sources like
research papers, peer journal articles, newspaper and other authentic websites are known as
secondary data.
In this research study, primary data are collected in order to justify all the research
objectives. The primary data are collected directly from the ITC’s employee regarding the
implementation of the SCOR model in their organization. There are 12 questions related to the
SCOR model, factors that are considered for the implementation if that model, the related
problem along with the importance. Moreover, some questions are also prepared for the
managers of the same organization regarding the importance of SCOR model in a FMCG
industry, competency of the organization to implement a SCOR model and steps planned to take

35SUPPLY CHAIN OPERATING REFERENCE MODEL
for overcoming the adversity while implementing SCOR model. The reason for adopting this
method of data collection is to gather the current scenario and the knowledge base in the staffs
for the concerned model.
3.5. Data analysis techniques
Blumberg, Cooper and Schindler (2014) mentioned that data are analyzed through two
ways- quantitative data analysis method and qualitative data analysis method. In quantitative
data analysis method, the numerical data are evaluated for answering all the developed research
questions; on the other hand, only the theoretical answers are evaluated trough the qualitative
data analysis method.
In this research study, the quantitative data analysis method is utilized as all the research
question is asked from the research respondents. These questions are asked through a survey and
the obtained data are valuated to answer all the questions. Evaluation is done through the central
tendencies through mean, median, mode and standard deviation.
3.6. Sampling technique
Bryman and Bell (2015) stated that there are two types of sampling techniques-
probability and non-probability sapling technique. In probability sampling techniques, all the
research respondents get similar chances to participate in the research; on the other hand, in non-
probability sampling technique, not all the respondents get the same chances to participate in the
research.
In this research study, both the non-probability and probability sampling technique is
utilized. All these respondents are provided with a questionnaire regarding the SCOR model. The
selection of the employees is done by applying probability sampling and the selection of the
managers is done through non-probability sampling techniques.

36SUPPLY CHAIN OPERATING REFERENCE MODEL
3.6.1. Sample size
Fowler Jr (2013) describes that the number of research respondents participated in the
research is known as sample size. In this research study, total of 103 respondents are considered.
100 are the employees of ITC Limited; whereas, the rest of the 3 respondents are the supply
chain managers of the same organization.
3.7. Ethical consideration
Miller et al. (2012) portray that research ethics plays a crucial role in accomplishing the
research without violating any regulation. This also resembles that the research is authentic. In
this research, all the respondents are provided with a consent form that is duly signed by them.
Moreover, all the research answers are protected through the legislation of Data Protection Act
1998. All the obtained data are only used for research purpose and not for any business benefits.
Lastly, all the research result is sent to the respondents as a prove that they have not participated
in any wrong thing.
3.8. Research limitation
The research faces the limitation of secondary research. The data has been collected only
from primary sources and thus, there are no data taken from other sources that supports the
implementation procedure of SCOR model. They research study is based on only one industry
and thus, the implementation of the SCOR model is only find based on that industry and not
about entire FMGC industry.
3.9. Gant Chart
Main activities/ stages 1st-2nd
Week
3rd-4th
Week
5th-6th
Week
7th-8th
Week
9th-10th
Week
11th-12th
Week
Topic Selection
Framing layout of the research

37SUPPLY CHAIN OPERATING REFERENCE MODEL
Literature review
Formation of the research
plan
Selection of the appropriate
research techniques
Primary data collection
Analysis & interpretation of
data collection
Conclusion of the Study
Submission of Final Work
Table 1: Gantt chart for the Research
(Source: Created by Author)
Section 4 - Data Collection
4.1 Quantitative Questions
Q1. What is your age?
Options No of respondents Total respondents
20- 30 years 20 100
31- 40 years 32 100
41- 50 years 35 100
More than 50 years 13 100
Table 2: Response on respondent’s age
(Source: Created by Author)
Q2. For how many years you are being associated with ITC Limited?
Options No of respondents Total respondents
Less than a year 28 100
1- 3 years 42 100

38SUPPLY CHAIN OPERATING REFERENCE MODEL
3.1- 5 years 18 100
More than 5 years 12 100
Table 3: Response on respondent’s association with the organization
(Source: Created by Author)
Q3. Do you agree that SCOR system is required for effective supply chain management in
your organization?
Options No of respondents Total respondents
Strongly Agree 44 100
Agree 34 100
Neutral 13 100
Disagree 7 100
Strongly Disagree 2 100
Table 4: Response on implementation of SCOR system in organization
(Source: Created by Author)

39SUPPLY CHAIN OPERATING REFERENCE MODEL
Chart 1: Response on implementation of SCOR system in organization
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.89
Median 2
Mode 1
Standard Deviation 1.013993
Table 5: Statistical interpretation for response on implementation of SCOR system
(Source: Created by Author)
Q4. How far do you agree that need for technological advancement is the required for
implementing SCOR model?
Options No of respondents Total respondents
Strongly Agree 39 100
Agree 49 100
Neutral 7 100
Disagree 4 100
Strongly Disagree 1 100
Table 6: Response on requirement of technological advancement in implementation of SCOR
model
(Source: Created by Author)

40SUPPLY CHAIN OPERATING REFERENCE MODEL
Chart 2: Response on requirement of technological advancement in implementation of SCOR
model
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.79
Median 2
Mode 2
Standard Deviation 0.820138
Table 7: Statistical interpretation for response on requirement of technological advancement
in implementation of SCOR model
(Source: Created by Author)
Q5. Do you agree that strong knowledge base is required in implementation of the SCOR
model?
Options No of respondents Total respondents
Strongly Agree 41 100
Agree 47 100

41SUPPLY CHAIN OPERATING REFERENCE MODEL
Neutral 6 100
Disagree 6 100
Strongly Disagree 0 100
Table 8: Response on requirement of strong knowledge base in implementation of SCOR
model
(Source: Created by Author)
Chart 3: Response on requirement of strong knowledge base in implementation of SCOR
model
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.77
Median 2
Mode 2
Standard Deviation 0.814701

42SUPPLY CHAIN OPERATING REFERENCE MODEL
Table 9: Statistical Interpretation for response on requirement of strong knowledge base in
implementation of SCOR model
(Source: Created by Author)
Q6. How far do you agree that organization implement SCOR model for obtaining greater
competitive advantage?
Options No of respondents Total respondents
Strongly Agree 42 100
Agree 49 100
Neutral 6 100
Disagree 3 100
Strongly Disagree 0 100
Table 10: Response on implementation of SCOR model for obtaining competitive advantage
(Source: Created by Author)
Chart 4: Response on implementation of SCOR model for obtaining competitive advantage
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values

43SUPPLY CHAIN OPERATING REFERENCE MODEL
Mean 1.7
Median 2
Mode 2
Standard Deviation 0.717741
Table 11: Statistical interpretation for response on implementation of SCOR model for
obtaining competitive advantage
(Source: Created by Author)
Q7. Do you agree that implementation of SCOR model bring improvement in material flow?
Options No of respondents Total respondents
Strongly Agree 46 100
Agree 44 100
Neutral 5 100
Disagree 3 100
Strongly Disagree 2 100
Table 12: Response on obtaining improvement in material flow from implementation of SCOR
model
(Source: Created by Author)

44SUPPLY CHAIN OPERATING REFERENCE MODEL
Chart 5: Response on obtaining improvement in material flow from implementation of SCOR
model
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.71
Median 2
Mode 1
Standard Deviation 0.85629
Table 13: Statistical interpretation for response on obtaining improvement in material flow
from implementation of SCOR model
(Source: Created by Author)
Q8. How far do you agree that with the implementation of SCOR model, streamline
information flow in the supply chain can be obtained?
Options No of respondents Total respondents
Strongly Agree 47 100
Agree 47 100

45SUPPLY CHAIN OPERATING REFERENCE MODEL
Neutral 6 100
Disagree 0 100
Strongly Disagree 0 100
Table 14: Response on obtaining streamlines information flow from implementation of SCOR
model
(Source: Created by Author)
Chart 6: Response on obtaining streamlines information flow from implementation of SCOR
model
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.59
Median 2
Mode 2
Standard Deviation 0.604612

46SUPPLY CHAIN OPERATING REFERENCE MODEL
Table 15: Statistical interpretation for response on obtaining streamlines information flow
from implementation of SCOR model
(Source: Created by Author)
Q9. Do you agree that SCOR model when combined with packaged software solution greater
productivity can be obtained?
Options No of respondents Total respondents
Strongly Agree 45 100
Agree 43 100
Neutral 8 100
Disagree 3 100
Strongly Disagree 1 100
Table 16: Response on combination of packaged software solution and SCOR model for
greater productivity
(Source: Created by Author)

47SUPPLY CHAIN OPERATING REFERENCE MODEL
Chart 7: Response on combination of packaged software solution and SCOR model for greater
productivity
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.72
Median 2
Mode 1
Standard Deviation 0.817486
Table 17: Statistical interpretation for response on combination of packaged software solution
and SCOR model for greater productivity
(Source: Created by Author)
Q10. Do you agree that improper human resource management system affects the
implementation of SCOR model?
Options No of respondents Total respondents
Strongly Agree 45 100
Agree 50 100
Neutral 4 100
Disagree 1 100
Strongly Disagree 0 100
Table 18: Response on improper human resource management system as an issue in
implementing SCOR model
(Source: Created by Author)

48SUPPLY CHAIN OPERATING REFERENCE MODEL
Chart 8: Response on improper human resource management system as an issue in
implementing SCOR model
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.61
Median 2
Mode 2
Standard Deviation 0.617833
Table 19: Statistical interpretation for response on improper human resource management
system as an issue in implementing SCOR model
(Source: Created by Author)
Q11. Do you agree that regular evaluation of SCOR model affects the performance of the
organization?
Options No of respondents Total respondents
Strongly Agree 50 100
Agree 43 100

49SUPPLY CHAIN OPERATING REFERENCE MODEL
Neutral 4 100
Disagree 1 100
Strongly Disagree 2 100
Table 20: Response on regular evaluation as an issue in implementing SCOR model
(Source: Created by Author)
Chart 9: Response on regular evaluation as an issue in implementing SCOR model
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.62
Median 1.5
Mode 1
Standard Deviation 0.788554
Table 21: Statistical Interpretation for response on regular evaluation as an issue in
implementing SCOR model
(Source: Created by Author)

50SUPPLY CHAIN OPERATING REFERENCE MODEL
Q12. How far do you agree that you there an organization can run its operation without
implementing SCOR model?
Options No of respondents Total respondents
Strongly Agree 36 100
Agree 45 100
Neutral 10 100
Disagree 7 100
Strongly Disagree 2 100
Table 22: Response on irrelevant implementation of SCOR model
(Source: Created by Author)
Chart 10: Response on irrelevant implementation of SCOR model
(Source: Created by Author)
Statistical interpretation of the central tendencies Obtained values
Mean 1.94
Median 2

51SUPPLY CHAIN OPERATING REFERENCE MODEL
Mode 2
Standard Deviation 0.96211
Table 23: Statistical interpretation for response on irrelevant implementation of SCOR model
(Source: Created by Author)
4.2 Qualitative Questions
Q1. What is the importance of SCOR model in a FMCG industry according to you?
First Supply Chain Manager: FMCG organizations, where there is regular supply and purchase
of consumer products, proper communication is required within a company and among its
internal stakeholders. It is very important to satisfy the need of the customers by fulfilling their
demands.
Second Supply Chain Manager: The importance of this model is not limited to the FMCG
industry only but every organization need to link their business processes with performance
metrics along with the competency of the staffs. This approach is accomplished through
implanting SCOR model in the organization.
Third Supply Chain Manager: The prime reason for the implementation of the SCOR model is
to evaluate the best practice through which greater productivity can be obtained. This model is
minutely define the function of planning supply chain operations, goods or services sourcing,
formulating new production unit, delivery of the final goods and effective product return
operations.
Q2. Do you think that your organization is competent enough to implement a SCOR model?
First Supply Chain Manager: ITC Limited has already implemented the SCOR model to close
the gap between the data and meaningful information. However, the SCOR model is presently

52SUPPLY CHAIN OPERATING REFERENCE MODEL
incorporated with balanced scorecard framework. Further process will be conducted so that the
entire supply chain system can be operated through SCOR model.
Second Supply Chain Manager: There are some inconsistency and alignment problem that leads
to poor fetching of real-time information and analytic content. This results in products delivery
delay which furthermore hampers the customer satisfaction. ITC Limited is competent as it
already taken the solution for focusing on metrics needing that can drive profit consistency. The
organization is also working on conducting training program for the staffs so that they can
handle the operation and judge the output of the model based on their performance measurement.
Third Supply Chain Manager: One challenge that our organization is facing is hurdles in
benchmarking and effective evaluation of performance and processes. The supply chain
management process is handled through two sources balanced scorecard framework and SCOR
model that leads too multiple sources for data collection that creates difference in performance
measure. The organization is competent enough to overcome such adversity as planning for
developing a robust system is adopted that can change according to the changing business needs.
Q3. What steps have you planned to take for overcoming the adversity while implementing
SCOR model?
First Supply Chain Manager: The managers are involved in implementing the SCOR model in
modules so that not only the implementation of the process become easier but the maintenance of
each module will also become less tedious. Some staffs will be allocated for the maintenance of
each module. Taken for instance, managers are liable for evaluating the sources of placing orders
and maintaining customer’s ROI. Moreover, some staffs are also hired for inventory
management. The next department is scheduled for products delivery, receiving the stocked
products, verification of the products, delivery of the products and hen payment generation

53SUPPLY CHAIN OPERATING REFERENCE MODEL
method. All the departments share their report through effective communication method so that
the overall performance of the organization can be evaluated.
Second Supply Chain Manager: The SCOR model is implemented part-wise through
performance metrics, business processes and best practices. The performance metrics is also
divided into three levels that evaluate warranty cost, yield variability, returns, fill rate and yield
rates. Some of the best practices that are evaluated by ITC Limited are environmental
management system, real time quality control techniques and formal training to employees.
Third Supply Chain Manager: The organization not only focuses on the environment but also
use accurate and approved process plans/specification. The concerned organization also
emphasizes on non-value added paperwork while still measuring process metrics and just-in-time
demand flow techniques.

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Section 5 - Interpretation of Data
It is found from the first question that 20 out of 100 employees belong to the age group of
20- 30 years. 32 and 35 respondents belong to the age group of 31- 40 years and 41- 50 years
respectively. Lastly, rest of the 13 employees is more than 50 years of age. The next question of
the survey also reveals that 28 employees are working for less than a year; whereas, 42 and 18
respondents are working for 1-3 years and 3.1 to 5 years respectively. The rest of the 12
employees are working in the organization for then 5 years.
The research question shows that 44 and 34 employees are in strongly favor and favor of
the fact respectively that SCOR system is required for effective supply chain management;
while, total of 9 employees are against of the fact and 13 respondents remain neutral. The
statistical interpretation also shows that the mean, median and mode shows that the majority of
respondents are with the research question. The value of the standard deviation also shows a
value close to 1 which means that the answers rely on the positive side of the question.
Moreover, for question no.4, 88 respondents agree that competency for adopting
technological advancement should be evaluated prior implementing SCOR model. Another 5
respondents denies the same fact; whereas, remaining 7 are neutral on the same question. The
Values obtained from statistical interpretation shows that value for mean, median and mode as
1.79, 2 and 2 respectively, which means that the majority is in positive favor. The value of
standard deviation is 0.820138 that reveals that there is low risk for any answer deviation.
The answer to the Question 5 of the survey illustrates that 88 respondents stated that they
believe an organization need to enhance the knowledge base of their staffs prior implementing a
new system. On the other hand, 6 respondents gave negative and neutral view respectively. The

55SUPPLY CHAIN OPERATING REFERENCE MODEL
value from statistical interpretation also shows that the mean, median and mode value of the data
analysis seems to be 1.77, 2 and 2 respectively, which shows that the central tendency points
towards “agree” in the likert scale ratings. The value of standard deviation is also 0.814701 that
is tends to 1 and hence chance for answer deviation is low.
Furthermore, 91 respondents agree with the fact that organization implement SCOR
model for obtaining greater competitive advantage. 3 and 6 respondents disagree and remain
neutral on the same research question. The value of mean, median and mode are also 1.7, 2 and 2
respectively. The standard deviation also shows value close to 2 which signify that the risk for
deviation of the answer towards negative response is low.
The answer to question 7 shows that 90 respondents are in favor of the fact that
implementation of SCOR model brings improvement in material flow. The remaining 10
respondent shows negative and neutral perception 5 each respectively. This means that with the
implementation the flow of the inventory will be improved as accurate records are being
communicated with all the stakeholders. The value evaluated in the statistical interpretation
shows that 1.71, 2 and 1 is obtained for mean, median and mode, which shows the positive
impact of SCOR model on material flow. The value of standard deviation also shows 0.85629
that is less risk of changing of answer towards negative perspective.
94 respondents agree that streamline information flow is also improved through the
implementation of SCOR model. The remaining 6 respondents remain neutral on the same
research question. The statistical data for mean median and mode is obtained as 1.59, 2 and 2
respectively that show that the obtained answer shows the positive impact that communication
system will be better after implementing the model. The risk for deviation of this answer is low
as the standard deviation value is found to be 0.604612.

56SUPPLY CHAIN OPERATING REFERENCE MODEL
The survey question 9 illustrates that 45 and 43 respondents strongly agree and agree on
the given facts that combination of packaged software solution and SCOR model is used for
greater productivity. This can also be evaluated through the central tendency that shows the
value of 1.72, 2 and 1 for mean, median, mode respectively. The value of standard deviation also
shows the value 0.817486 illustrates low risk for the deviation of the answer.
95 staffs agrees on the fact that improper human resource management system affects the
implementation of SCOR model and 4 and 1 respondents remain neutral and disagree with the
fact. This can be shows from the value obtained from the central tendency which shows the value
1.61, 2 and 2 for mean, median and mode respectively. Moreover the value of the standard
deviation that is 0.617833 also illustrates that poor human resource management system affects
the implement procedure of the SCOR system.
Moreover, 93 respondents among 100 agrees with the fact that regular evaluation of
SCOR model affects the performance of the organization; whereas, 3 respondents disagrees and
the remaining 4 remain neutral on the same fact. Thus, it can be said that most people agree that
regular evaluation of same system need time that can be utilized for other core business
operations. This can be found from the central tendency of the data analysis which shows 1.62,
1.5 and 2 value for mean, median and mode respectively. The value of standard deviation also
shows the 0.788554 that is close to 1 and hence the risk for deviation of the answer from positive
to negative is low.
Lastly, for the last survey question, 81 respondents agree on the fact that an organization
can run its operation without implementing SCOR model. This fact is however parallel true with
the other advantages. However, 10 responders remain neutral and rest of 9 respondents disagrees
with the fact. The value of the central tendencies also shows the value of 1.94, 2 and 2 for mean,

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median and mode respectively that shows organization can run their supply chain services even
if they did not implement SCOR model. Moreover, the value of standard deviation also shows
0.96211 that stated that there is low risk for deviation of this answer from affirmative to
negation.
It is also found from the qualitative analysis that all the managers consider SCOR model
is crucial for FMCG industry> the importance can be witnessed for effective communication,
obtaining user’s satisfaction by fulfilling their demands and greater productivity. SCOR model
also enhances the function of planning supply chain operations, goods or services sourcing,
formulating new production unit, delivery of the final goods and effective product return
operations. Secondly, all the three supply chain managers agree that their organization is
competent enough to implement a SCOR model and they are planning for training program so
that more employee get aware of utilizing the model and handle the delivery process of the
consumer products. However, managers also highlighted some issues like hurdles in
benchmarking and effective evaluation of performance and processes but it can be overcome
through the unique combination of sources balanced scorecard framework and SCOR model.
Lastly, it is also found that the concerned model is planned to implement in smaller modules
which is also further divided into some level. This process will help the managers to evaluate the
performance for each module. This approach also ensures the best outcome of the supply chain
management process.

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Section 6 - Conclusions
Thus, it can be conclude that SCOR model has many robust characteristics. The
concerned model is used for defining the standard language of the supply chain management
process. The standard language of the supply chain is planning of which products are to be
delivered, source of the ordered products, make, delivery and return of the products. The
planning process highlights the demand and supply planning and management that highlight the
establishment of the communication plan. This process also highlights the method of
management of business role, data collection, inventory, supply chain performances and
management of capital assets. The process of “source” highlights the planning for delivery,
receive, verification and transfer of the products along with authenticates payment system. The
process of “make” refers to the make- to- stock, make- to- order and engineer- to- order
production execution. Managers are liable to schedule production activities, formulation and
testing of the products along with release product to deliver. The aspect of “deliver” on the other
hand emphasizes on order, warehouse and transportation and installation management for
stocked products. In this process, the staffs responsible for the management of this section focus
on processing customer inquiries and route shipments through selected carriers. Lastly, the
“return” products focus on the return of defective products. The MRO products are also get
returned if a customer placed complaints against authentication and scheduling.
Managers are also interested to implement such system as they know the benefits of
implementing SCOR system. The SCOR model ensures effective customer interaction, fast order
entry and payment management. However, from the data analysis method it is found that
respondents agree on the fact that implementation of score model is not mandatory as developing
country like India there are thousands of business but maximum are small enterprises. This

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reveals the fact that SCOR does not attempt to describe every business process like sales and
marketing demand, research and technology development, product development and some cases
of post- delivery customer support. Another drawback that is evaluated through this research is
that SCOR assumes that with its implementation training, quality, proper maintenance of the
information technology and effective administrative operation which is not a function of supply
chain management.
It is also found from the research that implementation of the SCOR system is adopted by
an organization is required so that the accurate delivery of the products can be obtained through
effective communication among the external as well as internal stakeholders. In order to
implement the SCOR model an organization should be competent enough to adopt new
technology and have suitable platform for utilizing the information system. This fact is also
found that employees should also be knowledgeable about the new technology that is planned to
be implemented. It is also the fact that in order to make the staff aware about the new system,
organization is planning to implement staff training program. Moreover, one of the reasons for
implementing the SCOR model is to attain competitive advantage.
The survey also highlighted one fact that implementation of the SCOR model bring
improvement in material flow. Managing authority emphasizes on the improvement in material
flow so that overall corporate functions of the business can be handled properly. This approach
also optimizes the entire supply chain process by diminishes the cost for maintaining the
operation of intra-logistics. The application where the material flow planning can be obtained is
distribution centers, conveyor system, nodal point, workshop and inventory. Managers also take
some steps for improve the flow of material and this can be obtained through preliminary work
to the identification of data regarding the products orders, operations planning to finding
concepts and realization and implementation of the system. Another benefit that can be gained

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through the implementation of the SCOR model is effective streamline information flow in the
supply chain. In this way, delivery of the products from the main inventory to different
distributors and then to the final consumer can be effectively evaluated. In case of online
shopping, there is direct distribution of the products to the end users. Thus a streamline flow of
information allow the organization to collect the amount of products that is delivered to the
users, the amount of products that is available in the inventory and the process of evaluation
whether or not the stock is enough for fulfilling the need of the users. Moreover, another way
through which the organization can obtain greater productivity is the combination of packaged
software solution with that of the SCOR model.
However, some factors are there that can be considered as drawback for implementing
the SCOR model. The first is poor human resource management since they are liable to hire
skilled candidate for their organization. Another thing is that there are the system needs to be
regularly evaluated and that time can be utilized for focusing on other core business jobs.
Moreover through the survey it is also found that this effective model for supply chain
technology is new in India and not all organization is competent enough to implement the model.
This is the reason the effectiveness of the supply chain is not measured genuinely.

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Section 7 - Personal Reflection
This entire journey of the research is very productive for me and I have learned many
things throughout the phase. This is my first research and I am obliged to my principal and
mentor to give me the opportunity for conducting a research. I have no prior knowledge for
conducting a research but this research paper helped me to know about many research
procedures that can be useful for other research as well. I want to start from the topic selection. I
am very much impressed by the supply chain procedure of any business. Every organization
manufactures products for the users. The prior knowledge that I had is manufacturer only focus
on the quality to fulfill the demands of the users but I wondered the way they reach their
products to the end-users. I have also come through the fact that SCOR Model is a new concept
that is utilized by the marketers to bring more efficiency in the supply chain operations.
Moreover, this model also assumes that the communication phase is also enhanced through this
model. I have research through many research papers from the same field and find constructive
as well as negative arguments that can be useful for developing the content of my research paper.
I have learned about selecting the reliable resources from authentic sources as the information
found there are genuine. I have accessed my university’s library to find the relevant article that
can support the content of my research papers. I have formulated a draft for the research so that a
picture for the research can be drawn and it is easy for me to check whether I have fulfilled all
the requirements for accomplishing the research paper.
I have learned that a research paper comprise of several chapter or sections. Initially I
have faced problem in selecting a relevant topic for my research but at least I have selected a
relevant yet challenging topic so that I can enhance my knowledge in that particular field of
study. In the first chapter, there is a brief discussion of the problem statement, background of the

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research and mainly the research aim, objectives and questions. My research topic is about the
implementation of the SCOR model and this I have selected the factors that is considered prior
implementing the concerned model and the benefits that an organization can attain through the
application of the model. I have also formulated ne research objective that address the problem
faced by the organization to overcome the adversity. I have addressed the same objectives as the
research question. In the second chapter I have learned that I have to mention such theories and
concepts that can describe each of the research objectives. Thus, I have considered each
objective as a research topic and search on relevant resources and then develop content from that.
In this case, the challenge that I have faced is whether or not I have proceeded in the correct
direction. I have showed it to my friends and seniors and they have helped me and give me
constrictive feedback. I have followed one suggestion and include some images relate to the
written content. I have learned that incorporating images and factual data enhance the
significance of the research study.
I have also learned about different methodology like research purpose, research
philosophy and research approach. I have kerned about two types of research purpose and its
importance along with the benefits in developing a research. I have learned about three types of
research philosophies and two types of research approach. I have gone through the importance
for each of the research methodologies and have selected the most suitable methodology for my
research paper. I can now say that I am able to conduct different research and can also select
appropriate methodology for that research. I have also faced some challenges like when I need
some helps there were no friends as they are also busy with their research work. However, this
challenge had helped me to do become knowledgeable for the research topic on my own. I also
want to say that my seniors have also helped me through this process. They have provided me

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with sample files and make me understood how the selected process is beneficial for the
research.
I have selected the method for primary data as I have learned that primary research help
to obtain reliable data as it provide the current situation. I have also learned hat including the
secondary data is sometimes give better result for the research as it validates the finding found
from the primary research. However, the drawback that has come through by reading different
sources that incorporating two methods of analysis does not always provide accurate results as
the primary data is focused on as single organization or industry but finding secondary research
on the same organization or industry is difficult. My mentor has helped me throughout the
journey and has guided me to complete my research paper within the given time by addressing
all the crucial requirements. Lastly, I want to say that I have learned all the basic knowledge of
conducting a research and feeling like competent enough to work on this research topic for other
industry also so that the effectiveness of the SCOR model can be accurately evaluated.

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