Application of SCOR Model in an Oil-Producing Company

Topics: Supply chain management, Supply chain, Inventory Pages: 12 (4499 words) Published: December 4, 2014
Journal of Industrial Engineering 4 (2009) 59- 69

Application of SCOR Model in an Oil- producing Company
Maziyar Golparvara, Mehdi Seifbarghya,*

Department of Industrial and Mechanical Engineering, Islamic Azad University, Qazvin Branch, Qazvin, Iran. Received 5 Oct., 2009; Revised 27 Oct., 2009; Accepted 29 Nov., 2009

Supply Chain Operations Reference (SCOR) model is developed and maintained by the Supply Chain Council (SCC). The model is a reference model which can be utilized to map benchmark and improve the supply chain operations. SCOR model provides companies with a basic process modeling tool, an extensive benchmark database by defining a set of supply chain metrics. This paper explains the process and results obtained by applying SCOR model to analyze the supply chain of Iranol Oil Company (IOC). Making numerous interviews with the managers and considering the documents regarding the supply chain processes and comparing the current situation of the supply chain with SCOR best practices, some improvement projects were proposed to improve the supply chain performance. The projects were prioritized using TOPSIS, a well-known multi attribute decision making technique. Keywords: Supply Chain, SCOR, TOPSIS, Oil.

automobile owners. The key processes of the company
are sales, purchasing and production.
The major suppliers of IOC, except for refineries, are
chemical materials suppliers, container suppliers, spare
parts suppliers, additive materials suppliers and furfural
suppliers. Chemical materials suppliers are petrochemical
complexes, mostly located in different locations of the
country. The containers suppliers are also inside the
country ; however, the company has also a container
making complex. The spare parts suppliers are external
companies (e.g. Metra from France) or some companies
inside Iran. Additive materials suppliers are some
European companies (e.g. Euro Gulf from England)
which have representatives inside Iran. Furfural suppliers
(e.g. Shell) are some companies in China, Europe and
Africa. IOC supplies it from their representative inside
Iran. As pointed out earlier, oil refineries are located in
Tehran and Abadan .
IOC’s products are sold externally or internally. Internal customers include numerous dealers, exclusive
representatives and industries. The external customers are
international customers who receive the products at the
ports. Dealers receive products in the form of bulk or in
containers. The dealers could purchase them from the
competitors and they can export the products. Exclusive
representatives, which are in a closer relationship with
the company ,could just purchase products from IOC.
Industries include many factories which require lubricant
for various applications like maintaining machineries.

1. Introduction
IOC is a lubricant making company with two refinery
sites in Tehran (in the Central part of Iran) and Abadan
(in the south west of Iran) and a container making
company in Tehran (This company packages lubricants
and makes containers). The refineries are very close to
Tehran and Abadan oil refineries. The lubricant is
transported to the container making company by
particular trucks for packaging. However, the company
may also sell bulk lubricant but the strategy is selling the products in containers because of Higher added values.
The major raw material of refineries which is lube cut is
transported by pipelines from the oil refineries. Figure 1
illustrates a brief geographical representation of the oil
and lubricant refineries in Tehran and Abadan. The
Container making company is also in Tehran and
receives a part of the refineries product.
Standard products which enjoy standard qualities are
usually produced make-to-stock and special quality
products are usually produced make-to-order. The
company’s products are divided into four categories
including automobile motor lubricant, industrial

References: [1]
Maziyar golparvar et al./ Application of SCOR Model in an Oil-producing Company
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