Discussion on business processes involved on SOCR model Harvard Case Solution & Analysis

Discussion on business processes involved on SOCR model Case Solution

As the sourcing directly refers to the procurement of the goods and services, therefore, strategic sourcing is the requirement for the good supply chain process. Also, it is essential for the company to operate in such an area where it can maximize its productivity while minimizing the cost of production. Therefore, operating in a low-cost country such as China, where the company could avail cheap labor with the abundant resources to cut its operational costs. Reshoring means to promote domestic production instead of offshore production can be another strategy of the business to get the resources at low cost. The reason is when the company will provide the employment opportunities to the countrymen then the government will also provide subsidiaries to the company that will cut the cost of production. Vendor-managed inventory (VMI), an approach of inventory management and execution of orders, can also be used to improve the communication with the suppliers and the customers and to increase the sales while improving the services.

MAKE

In this phase of the business model, the product is transmuted into its final stages to meet the projected or actual demand of the product. The industries particularly related to the distribution and manufacturing are more concerned about this process as it requires the customization information from both sides of the business. The “make” process of the SCOR model includes the activities from packaging to the discharging of the product. This process also involves the production of links and management of facilities and equipment. While the products are being made, Economic Order Quantity (EOQ) should also be considered as it is the real-time optimized order quantity, to cut the cost of overheads.

DELIVER

This phase of the supply chain model involves the execution of products. The steps included in executing a product involve order management, warehousing, distribution to the business or retailers including transportation. Moreover, the process of delivering also involves the customer support, management the product lifecycle, assets, finished goods, and trade requirements.

Strategic sourcing for the selection of convenient and cheaper distribution medium can be considered in this process. Again, the delivery in the low-cost country will be easier due to the cheap labor forces but the sales will depend upon the choices of the people because if the labor force is cheaper in a country, which means substitutes must be available for every product. Reshoring will also cut the cost of transportation within the country.

RETURN

This additional process in supply chain management concentrates the products that are discarded or dispatched back for any cause. The organization that delivers the products must be prepared to handle the products that are defected or returned back due to defects or any other cause. This process involves the management of returned back goods through the company's return policies and contracts. The post-delivery customer support comes under this process of the SCOR model.

The company should consider the VMI and EOQ to reduce the chances for product return and to improve the procurement.

CONCLUSION

Transforming the above discussion in a brief view, SCOR is the model that involves the steps of procurement of the products and services. If the five processes of the model are well equipped with the implication of sourcing strategy, re-shoring, VMI and above-discussed parameters then the process of procurement can be made better. Also, it has been recommended that the company should use such parameters that can evade the chances of the products being returned.

  1. Exhibit 1: SCOR Model
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Discussion on business processes involved on SOCR model

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