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. Applying SCOR streamlines communication and dramatically improves the overall effectiveness of daily management and targeted improvement initiatives. As demonstrated by the SCORindex, companies that use SCOR are consistent top performers in their industries.
Organizations that use SCOR have:
- achieved consistent annual bottom-line improvements of 1-3%
- reaped significant cost savings and economic returns on SCOR-related investments
- grown in aggregate share value two to three times faster than the Dow Jones and S&P 500 indexes
SCOR helps managers address perennial supply chain challenges:
- Customer service – SCOR helps evaluate cost/performance tradeoffs, develop strategies for meeting customer expectations, and respond to domestic and global market growth.
- Cost control – SCOR metrics are used in conjunction with supply chain performance attributes, making it possible to compare different supply chains, industries, and strategies.
- Planning and risk management – Using SCOR leads to faster implementation, more comprehensive identification of potential risks, and easier coordination with customers, suppliers, and stakeholders.
- Supplier and partner relationship management – SCOR provides a common language for supply chain classification and analysis across organizational boundaries.
- Talent development – The release of SCOR 10.0 adds a strategic talent framework that complements SCOR metrics, process, and practice components.
Examples of how SCOR and Supply Chain Council membership have helped companies improve their supply chain.
A Global Market Leader in Optical Networking
The Challenge: A €370.2M enterprise focused on capturing rapid growth in demand while maintaining profitability needed to identify inventory drivers and optimize inventory levels to enable the company to reach inventory reduction targets, while improving customer satisfaction in Order Fulfillment Cycle Time (OFCT) and On-time Delivery (OTD). They also needed a transformation plan that would allow them to proactively plan, drive, and manage the inventory levels and better achieve the balance of cost and service.
The Solution:
- Used SCOR to identify performance gaps in key metrics between current and required to reach parity status
- Used SCOR to identify process disconnects, drivers of inventory, and projects required for improvement
- Prioritized proposed projects based on potential impact and amounts of effort/risk
Benefits Achieved:
- Gross inventory reduced from €59 million to €38 million in 10 months
- Inventory days of supply reduced 47% from initial scorecard
A Rapidly Growing Pharmaceuticals Company
The Challenge: The company sustained significant growth in a 5 year period. That growth, along with a conversion to a new ERP system created the “perfect storm” of supply chain issues. Customers were complaining, which impacted new licensing opportunities, future earnings growth, and shareholder value.
The Solution:
- Established process to evaluate options
- Initiated 17-week program using SCOR
- Created portfolio of 50 improvements that addressed key problem areas
- Implemented a “Drive Chain” that was the basis of an enterprise-wide transformation program
Benefits Achieved:
- Sales per employee increased by 20%
- Cost of goods sold reduced by 10%
- Inventory days of supply improved by 20%
- Cash-to-cash cycle improved by 15%
- Shareholder returns: $4.1 million; internal rate of return 300%; enterprise value uplift = $12.1 million