This paper discusses the importance of the SCOR model in assessing risks within the supply chains and makes an attempt to determine how the model applies its scope in addressing risks from internal employees. The application of the SCOR model is only limited to study and to analyze the concepts of supply chain vulnerability and the stakeholder’s interests and doesn’t extend beyond that. The model is applied to Toyota Kirloskar Motor Corporation, by configuring its existing supply chain and identifying the potential internal risks. Based on the analysis, recommendation and suggestions are submitted for a variant of attributes to the SCOR model.
In a complex dynamic business environment, supply chains have become the most integral part of the organization. They now, are the tools of reducing costs and adding value (additional) to a product or service. Henceforth, they can be regarded as the crucial part of an organization. However, the quest of organizations and globalization with the aim of constructing an effective means of supply and supply chain has increased the complexity of the supply chain which can often reduce the knowledge and understanding the of the exposure to risk.
The risks can arrive from anywhere or from any source. For instance, imagine the port and the harbor industry which was wrecked by Tsunami which erupted in Indian Ocean 2004. This was an unanticipated risk which can be categorized as natural risk (natural disaster). Risks from suppliers can be untimely delivery, increased in costs than agreed or labor strikes and external risks can change government economic policies (changing tax rates and subsidies etc.).While few risks can be anticipated, whilst majority of risks cannot be forecasted (decease of factory worker due to unhealthy conditions or heart stroke), this demands the ongoing need for an effective risk management frame work for assessing risks in the supply chain management.
The incorporation of the Supply chain operations model for assessing and evaluating risks have benefitted many supply chains and organizations. Yet, there are certain limitations of the model that fails to address risks in the supply chain.
The SCOR model of assessing risks becomes more complex when it’s applied to complex supply chains. The five attributes on which the SCOR model is built has to be tested to determine if there is a need for any other variants or additional attributes that has to be incorporated into the model.
Table of Contents
1. INTRODUCTION
1.1. BACKGROUND VALUE
1.2. RESEARCH PROBLEM
1.3. RESEARCH CONTRIBUTIONS
2. COMPANY BACKGROUND
2.1. THE KANBAN SYSTEM
2.2. PRODUCTION SITES OF TOYOTA OUTSIDE JAPAN
3. LITERATURE REVIEW
3.1. SUPPLY CHAIN MANAGEMENT
3.2. SUPPLY CHAIN RISK
3.3. SUPPLY CHAIN RISK MANAGEMENT
3.4. RISK AND SUPPLY CHAIN
3.5. THE SUPPLY CHAIN OPERATIONS REFERENCE MODEL (SCOR)
3.6. SUPPLY CHAIN RISK AND SCOR
3.7. PLAN-SOURCE-MAKE-DELIVER-RETURN- LEVEL I
3.8. PLANNING-EXECUTION-ENABLE-LEVEL II
3.9. PROCESS-ELEMENT-LEVEL-III
3.10. PERFORMANCE ATTRIBUTES AND METRICS
3.11. VALUE AT RISK
3.12. SUPPLY CHAIN RISK IDENTIFICATION & ASSESSMENT- SCOR MODEL
3.13. EMPLOYEES AND THEIR IMPORTANCE IN SUPPLY CHAINS
3.14. SUPPLY CHAIN VULNERABILITY
4. RESEARCH DESIGN
4.1. EXPLORATORY RESEARCH
4.2. LITERATURE SEARCH
4.3. QUALITATIVE RESEARCH
4.4. QUANTITATIVE RESEARCH
4.5. DATA COLLECTION
4.6. PRIMARY DATA
4.7. SECONDARY DATA
4.8. CASE ANALYSIS
5. ANALYSIS
5.1. RISK MANAGEMENT-A PHILOSOPHY BY TOYOTA ITSELF
5.2. SCOR IMPLEMENTATION-RISK ASSESSMENT TECHNIQUE
5.3. KEY INTERNAL RISKS AT TKM
5.4. HISTORICAL ANALYSIS
5.5. RISK ASSESSMENT
5.6. IMPACTS OF INTERNAL RISKS
5.7. RISK MITIGATION PLAN
6. FINDINGS AND DISCUSSIONS
6.1. VULNERABILITY
6.2. IMPORTANCE OF STAKEHOLDERS AROUND THE SUPPLY CHAIN
6.3. PERFORMANCE METRICS
7. CONTRIBUTIONS
8. LIMITATIONS
Objectives and Research Themes
This study aims to examine the applicability and limitations of the SCOR model in assessing supply chain risks, specifically within the context of internal organizational stakeholders. By utilizing Toyota Kirloskar Motor Corporation as a case study, the research investigates how risks arising from internal employees impact supply chain performance and proposes potential modifications or additional attributes for the standard SCOR framework to better accommodate these critical variables.
- Analysis of supply chain risk management frameworks and their limitations.
- Evaluation of the SCOR model's effectiveness in identifying internal supply chain vulnerabilities.
- Integration of VaR (Value at Risk) metrics for assessing supply chain disruption costs.
- Investigation into the impact of internal stakeholder behavior (e.g., labor strikes) on production continuity.
Excerpt from the Book
3.1. Supply Chain Management
Operations management is the process of planning, scheduling and controlling of the activities that transform inputs into finished goods and services. An operations management is a collection of process, which further includes sub-processes. Operations management is also a collection of people, technology, and systems within a company, which has a primary obligation of providing organization’s products/services. During this conversion of inputs to products/services, there exist a sequence of processes, which is involved in the production, and distribution of a commodity known as supply chain; management of the sequence can be referred as supply chain management.
Supply chains are a series of value creating processes spanning over company boundaries in order to provide value to the end consumer (Chinkan, 2008). Supply chain management is an oldest existing concept of management, which has been researched long down the history (Mentzer et al, 2001; Lamming et al., 2001; LaLonde & Masters, 1994).
Historically the evolution of supply chain management dates back to 90’s: where in pre globalized world, there existed a poor transportation technology due to which each community produced most of what it consumed. Later, the development of steam powered the railways to transport goods; which reduced trade costs dramatically making it to spatially separate production and consumption (Bairoch 1990)
Summary of Chapters
1. INTRODUCTION: Outlines the research background, defines the core supply chain problems, and establishes the investigation's contributions.
2. COMPANY BACKGROUND: Details the history of Toyota, its production philosophy, the Kanban system, and its global presence.
3. LITERATURE REVIEW: Examines academic theories on supply chain management, risk management techniques, and the structure of the SCOR and VaR models.
4. RESEARCH DESIGN: Explains the exploratory and qualitative methodologies used to conduct the study.
5. ANALYSIS: Applies the SCOR model to the Toyota Kirloskar Motor case study to identify internal risks and evaluate the impact of labor-related disruptions.
6. FINDINGS AND DISCUSSIONS: Discusses the vulnerability of supply chains, the significance of internal stakeholders, and the performance metrics derived from the study.
7. CONTRIBUTIONS: Summarizes the study’s findings regarding the limitations of existing SCOR models and the need for incorporating human-factor attributes.
8. LIMITATIONS: Addresses the constraints of the study, including geographical focus, data assumptions, and the US-centric nature of the SCOR model.
Keywords
Supply Chain Management, SCOR Model, Risk Assessment, Value at Risk (VaR), Toyota Kirloskar Motor, Internal Stakeholders, Supply Chain Vulnerability, Labor Strikes, Kanban System, Lean Manufacturing, Process Reference Model, Risk Mitigation, Supply Chain Disruption, Business Continuity, Performance Metrics
Frequently Asked Questions
What is the core focus of this research paper?
The research focuses on assessing supply chain risks using the SCOR model, specifically identifying how current frameworks fail to adequately account for internal stakeholder disruptions.
What are the primary thematic fields addressed?
The paper covers supply chain risk management, the application of SCOR and VaR models, and the role of internal organizational factors in maintaining supply chain resilience.
What is the primary research goal?
The primary goal is to determine if the SCOR model can effectively identify and mitigate internal risks and to propose enhancements to the model by incorporating stakeholder-related attributes.
Which scientific methodology is employed?
The study utilizes an exploratory research design, combining qualitative analysis with a specific case study of Toyota Kirloskar Motor Corporation.
What is covered in the main section of the document?
The main section covers a literature review of supply chain risks, the detailed configuration of the SCOR model, a historical analysis of Toyota’s production challenges, and a practical application of the SCOR/VaR framework to the company's Indian operations.
Which keywords best characterize this work?
Key terms include Supply Chain Management, SCOR Model, Risk Assessment, Value at Risk, and internal stakeholder management.
How does the SCOR model handle internal employee risks?
The paper concludes that the standard SCOR model largely overlooks internal employee behavior and labor disputes, suggesting this as a significant gap in current industry-standard frameworks.
What specific impact did labor strikes have on TKM’s operations?
Labor strikes at the Bidadi facility caused major production stoppages, financial losses, and disruptions to both inbound and outbound logistics, demonstrating the high impact of internal stakeholder issues.
What is the proposed 'To-Be' configuration for TKM?
The 'To-Be' configuration integrates SCOR methodology with a deeper focus on risk mitigation strategies that account for internal disruptions, aiming to improve future business continuity.
- Quote paper
- Murali Mg (Author), 2014, A study on the SCOR model for assessing risks in a supply chain, Munich, GRIN Verlag, https://www.grin.com/document/280991
