The Supply Chain Operations Reference (SCOR®) model is the product of Supply Chain Council (SCC), an independent, nonprofit, global corporation with membership open to all companies and organizations interested in applying and advancing the state-of-the-art in supply chain management systems and practices. The SCOR model captures the Council’s consensus view of supply chain management. While much of the underlying content of the model has been used by practitioners for many years, the SCOR model provides a unique framework that links business process, metrics, best practices and technology features into a unified structure to support communication among supply chain partners and to improve the effectiveness of supply chain management and related supply chain improvement activities. Member companies pay a modest annual fee to support Council activities. All who use the SCOR model are asked to acknowledge SCC in all documents describing or depicting the SCOR model and its use. The complete SCOR model and other related models of the SCC are accessible through the members’ section of the www.supply-chain.org website. SCC members further model development by participating in project development teams. SCOR and other related SCC models are collaborative ongoing projects that seek to represent current supply chain and related practice.
How Does SCOR Help?
SCOR® helps manage a common set of business problems through a standardized language, standardized metrics, and common business practices which accelerate business change and improve performance. Organizations which use SCOR enjoy consistent annual bottom-line improvements of 1-3%. See SCORindex for a stock-market view of SCOR-using companies. Business problems commonly solved are:
Business Management Challenges
- Strategy Development - identify, instrument, and deploy supply chain strategies within and across organziations
- Merger, Acquisition or Divestiture (companies or supply chains) - merge or split up functioning supply chains to achieve merge, acquisition, or divestiture operational goals
- Supply optimization and Re-engineering - improving individual, clusters, or networks of supply chains
- Standardization, Streamlining - improve operational control and cost by standardizing core processes
- Management alignment - create standardizes management tools, reporting, and organizational structures
- New business start-up (company and supply chain startups) - create and deploy supply chains
- Benchmarking - competitive assessment of qualitative and quantitative performance
- Process Outsourcing - identifying and outsourcing non-value add processes
- Software implementation (ERP, PLM, QC) - pre-implementation definition and optimization of supply chains
- Workflow & Service Oriented Architecture - optimization of IT service provisioning
- Skills development - standardization of skills definition, sourcing, and performance criteria
How Do I Use Scor?
SCOR® is typically used to identify, measure, reorganize and improve supply chain processes. This is accomplished by a cyclic process of:
- Capturing the configuration of a supply chain A supply chain configuration is driven by:
- Plan levels of aggregation and information sources
- Source locations and products
- Make production sites and methods
- Deliver channels, inventory deployment and products
- Return locations and methods
- Enable managing performance, data, assets and networks
- Measuring the performance of the supply chain and comparing against internal and external industry goals Supply chain performance is focused on:
- Reliability - achievement of customer demand fulfilment on-time, complete, without damage etc.
- Responsiveness - the time it takes to react to and fulfill customer demand
- Agility - the ability of supply chain to increase/decrease demand within a given planned period
- Cost - objective assessment of all components of supply chain cost
- Assets - the assessment of all resources used to fulfill customer demand
- Re-aligning supply chain processes and best practices to fulfill unachieved, or changing business objectives This re-alignment is achieved through a combination of:
- Classic process re-engineering from "As-Is" to "To-Be"
- Lean Manufacturing analysis and process change
- Six-Sigma analysis of defective processes
- Theory-of-Constraints analysis of systems of processes to elucidate root-cause issues
- ISO-9000 style process capture and control
- Balanced SCORcards and benchmarking
- And a host of other combined industrial engineering based best-practice techniques in improvement