What is SCOR?

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 Councils consensus
view of supply chain management.
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What is SCOR?

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.
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What is SCOR?
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.
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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:
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Business Management Challenges
--Strategy Development - identify, 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
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Business Management Challenges
Management alignment create, standardize
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
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.
Technology Services
Software implementation (ERP, PLM, QC) - pre-
implementation definition and optimization of
supply chains .
Workflow & Service Oriented Architecture -
optimization of IT service provisioning .
Evolving:
Skills development - standardization of skills
definition, sourcing, and performance criteria

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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

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Measuring the Performance of SC.
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

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Realign the SC
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

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