SCOR Implementation in Oil and Gas Company from an Emerging Market

SCOR Implementation in Oil and Gas Company from an Emerging Market

Jibran Hafeez (Department of Industrial & Manufacturing Engineering, NED University of Engineering & Technology Karachi, Pakistan), Rameez Khalid (Department of Management, IBA Karachi, Pakistan) and Shahid Mir (Department of Management, IBA Karachi, Pakistan)
DOI: 10.4018/IJORIS.2017010105
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Abstract

Measuring supply chain performance is an important business success factor in today's competitive environment and continuous improvement culture. Several models have been developed for this purpose, however, such models lack standardized language and are not well known in the developing countries. Supply Chain Council (SCC) developed Supply Chain Operations Reference (SCOR) model. This paper presents a case-based action-research for a step-by-step implementation of SCOR model. The case company belongs to oil and gas sector in a developing country. As-Is model was developed and analyzed for gaps. Reasons were identified using company documents and semi-structured interviews. To-Be model was then developed along with recommendations keeping into account the challenges faced by companies operating in emerging markets. The step-by-step SCOR implementation was found to be effective. It is further found that adapting the SCOR model for developing countries is a time-intensive effort and adapting the best practices can be a better option.
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Literature Review

Today we realize that competition is between supply chains and no more between companies (Erkan & Bac, 2011). So, effective SCM is critical for protecting competitive advantage and performance improvement of a supply chain (Trkman, Štemberger, Jaklic, & Groznik, 2007). SCM is all about smooth flow and transformation of material from the origin to point of consumption. It includes flow of: materials; information; and money. Conventionally, for functional products the critical factor is cost efficiency and that for innovative products is responsiveness (Fisher, 1997).

Organizations usually consider themselves successful in managing their supply chains, however still there are gaps (Elmuti, 2002). As demand for SCM is growing among employers, more universities are adding advanced courses in SCM (Ellram & Cooper, 2014; Webb, Thomas, & Liao‐Troth, 2014). This move will further enhance the body of knowledge for supply chain decision making. Conceptually, various supply chain decisions can be segregated in terms of their implications, i.e.: operational; design; and strategic (Huan, Sheoran, & Wang, 2004). For the effective management and decision making in supply chains, performance measurement is fundamental.

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