Supply Chain
Operations Reference
Model
(SCOR)
• Developed by Supply Chain Council (SCC): Independent, not-
for-profit corporation organized in 1996 by a Global management-
consulting firm, Pittiglio Rabin Todd &McGrath (PRTM) and
Market research firm, Advanced Manufacturing Research (AMR)
In Cambridge, Massachusetts.
• SCC Objective: To develop a standard supply-chain process
reference model enabling effective communication among the
supply chain partners, by using standard terminology to better
communicate and learn the supply chain issues Using standard
metrics to compare and measure their performances
• SCOR is an acronym for supply chain operations reference model,
which was developed to assist businesses in understanding,
structuring, and evaluating the performance of supply chains.
• According to dictionary version:
• The SCOR model describes the business activities associated with
satisfying a customer’s demand, which include plan, source, make,
deliver, and return. Use of the model includes analyzing the current
state of a company’s processes and goals, quantifying operational
performance, and comparing company performance to benchmark
data. SCOR has developed a set of metrics and best practices
information that companies can use to evaluate their supply chain
What is SCOR?
performance.
• Combining four techniques into a single integrated approach
Business Process Performance Best Practices Analysis Organizational Design
Improvement Benchmarking
Capture the “as-is” Quantify relative Identify practices and Assess skills and
business activity and performance of similar software solutions that performance needs and
design the future “to-be” supply chains and result in significantly align staff and staffing
state establish internal targets better performance needs to internal targets
Process Reference Framework
Process Performance (metrics) Practices People (skills)
About SCOR: A Process Framework
Scope of the SCOR framework applies to the entire supply chain
Orients supply chain improvements around standardized set of
performance, process, practice, and skills metrics
Enables supply chain performance and practice benchmarking
Centers supply chain improvement efforts on creating value for customers
Applies detailed supply chain metrics to measure supply chain
performance
Provides metric and activity alignment across organizational boundaries
Establishes a common repository of supply chain performance terms and
toolsets
Advantages of Using the SCOR
Framework
Plan
Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source
Return Return Return Return Return Return
Return Return
Suppliers Supplier Your Company Customer Custome’s
’Supplier Customer
Internal or External Internal or External
SCOR Model
Processes Metrics Best Practices
SCOR - 5 distinct Management Processes
• Emerging practice: a practice that introduces new technology,
knowledge, or radically different ways of organizing processes
• Best practices: practices that are current, structured, and repeatable
and have a proven and positive impact on supply chain performance
• Standard: practices that have been used by a wide range of businesses
over a long period of time and that produce acceptable, positive results
• Declining: practices that have been used for long periods of time but
have become obsolete and even harmful to business and supply chain
performance
Four Types of SCOR Practices: Definitions
The SCOR model is based on three major principles: process
modeling/re-engineering, measuring performance, and best practices.
There are 5 distinct process-modeling building blocks to the SCOR model:
• Plan: These are processes that relate to demand and supply planning.
Standards must be established to improve and measure supply chain
efficiency. These rules can span compliance, inventory, transportation,
and assets, among other things.
• Source: This step in the SCOR model involves any processes that
procure goods or services in order to meet a demand (real or planned).
Material acquisitions and sourcing infrastructure are examined to
determine how to manage the supplier network, inventory, supplier
performance, and agreements. This stage should help you plan on when
to receive, verify, and transfer a product in the supply chain.
SCOR Model: Management Processes
important in the manufacturing and distribution industries, and helps to
answer the questions of: make-to-order, make-to-stock, or engineer-to-
order? The “make” part of the process includes production activities,
packaging, staging, and releasing the product. It also involves production
networks and managing equipment and facilities.
• Deliver: Any process that involves getting the product out, from order
management and warehousing, to distribution and transportation. This step
also involves customer service and overall management of product
lifecycles, finished inventories, assets, and importing/exporting
requirements.
• Return: This final step focuses on all products that are returned or
received, for any reason. Organizations must be prepared to handle the
return of defective products, containers, and packaging. The return process
Continue…
involves the application of business rules, return inventory, assets, and
regulatory requirements. This final step directly extends to post-delivery
customer support and follow-up.
The SCOR model does not attempt to explain every business
process or activity. As in all business models, there is a specific
scope that the SCOR model addresses, including the following
segments:
1. Customer Interactions: The entire process of the customer
relationship, from order entry through paid invoice.
2. Product Transactions: All product, from the supplier’s supplier
to the customer’s customer, including equipment, supplies, bulk
products, etc.
3. Market Interactions: From the understanding of demand, to the
fulfillment of every order.
SCOR Model: Scope
• Sales administration processes
• Technology development processes
• Product and process design and development processes
• Some post-delivery technical support processes
SCOR does not include
Some advantages that an effective SCM would grant to a company
could be:
• Better management of inventories, which is translated in reduction of
costs. If the suppliers can accede on line to the information of the stores
and to the needs of production, it is possible to optimize the management
of stocks and avoid collapses in the production.
• A narrower relation with clients supported by a better communications
infrastructure, which lets efficient flows of information that allow a better
answer to the new requirements of the market.
• Strategic integration with the suppliers, enabling channels of feedback,
sharing information and risks of the supply in some cases.
• Improvement in the management of supply faults along the chain. This will
allow building a unified, efficient and solid productive block, which will be
ADVANTAGES FOR THE COMPANIES
very well valued in the market and principally by the clients.
NEENU
KONIKA
MEGHNA
Thank You
