Many supply chain professionals have heard of or used SCOR® (Supply Chain Operations Reference Model), but with little success due to limited comprehensive understanding about the model. SCOR® is a registered product of APICS Supply Chain Council. This article provides a brief overview of SCOR®. Join the discussion.
About SCOR® – A Process Framework
- Process frameworks deliver the known concepts of business process reengineering, benchmarking, best practices and organisational design in a cross-functional framework:
- Standard processes; Plan, Source, Make, Deliver, ..
- Standard metrics: Perfect Order Fulfillment, Cash-to-Cash Cycle Time, Total Cost to Serve,..
- Standard practices: EDI, CPFR, S&OP, Cross-Training, ..
- Standard job skills: Lean, Accounting, Solicitation, ..
- SCOR® is a unique framework for defining and linking performance metrics, processes, best practices, and people into a unified structure
- It has pre-defined relationships between metrics, processes, practices and skills
- SCOR® is used to evaluate and compare supply chain activities and their performance
- Plan, Source, Make, Deliver, Return and Enable
- Process modelling
Performance / Metrics
- Reliability, Responsiveness, Agility, Cost, Asset management efficiency
- Scorecards and performance benchmarking
- Emerging, Best and Standard
- Process standardisation and practice benchmarking
- Skills, Experience, Training, Aptitudes and Competency levels
- Organisational design
PROCESSES: SCOR® is organised around six major management processes
- Plan: The Plan processes describe the activities associated with developing plans to operate the supply chain. Alignment of resources to demand
- Source: The Source processes describe the ordering (or scheduling of deliveries) and receipt of goods and services. Buying or acquiring materials or services
- Make: The Make processes describe the activities associated with the conversion of materials or creation of the content for services. Conversion or value-add within supply chain operations
- Deliver: The Deliver processes describe the activities associated with the creation, maintenance and fulfilment of customer orders. Customer interaction, from order to final delivery and installation
- Return: The Return processes describe the activities associated with the reverse flow of goods. Reverse material/service flow away from customer back through supply chain
- Enable: Enable processes describe those processes associated with the management of the supply chain. Management of supply chain risk, relationships, performance & information
METRICS: SCOR®’s Strategic Level metrics measure the effectiveness of the Supply Chain Strategy
|Strategic Performance Attribute||Metric (Strategic)|
|Customer Facing||Supply Chain Reliability||Perfect Order Fulfillment|
|Supply Chain Responsiveness||Order Fulfillment Cycle Time|
|Supply Chain Agility||Supply Chain Flexibility|
Supply Chain Adaptability
Overall Value at Risk
|Internal Facing||Supply Chain Cost Management||Total Cost to Serve|
|Supply Chain Asset Management Efficiency||Cash-to-Cash Cycle Time|
Return on Supply Chain Fixed Assets
Return on Working Capital
PRACTICES: Typically companies aim for Best Practice is which defined as “A current, structured, proven and repeatable method for making a positive impact on desired operational results.”
- Current: Must not be emerging and cannot be antiquated
- Structured: Has clearly stated Goal, Scope, Process, and Procedure
- Proven: Success has been demonstrated in a working environment and can be linked to key metrics
- Repeatable: The practice has been proven in multiple environments.
SKILLS: SCOR® defines the skills, experiences, aptitudes, training and competency levels required to manage supply chain processes
- Skill: Capacity to deliver pre-determined results with minimal input of time and energy
- Experience: The knowledge or skill acquired by observation or active participation
- Aptitude: A natural, acquired, learned or developed ability to perform a certain kind of work at a certain level.
- Training: A particular skill or type of behavior learned through instruction over a period of time
- Competency level: The state or quality of being qualified, having the ability, to perform a specific role.
Using SCOR® to Prioritise Strategic Requirements
SCOR®’s six major management processes (Plan, Source, Make, Deliver, Return and Enable) drive the achievement of supply chain performance targets:
|Strategic Performance Attribute||Strategy|
|Customer Facing||Supply Chain Reliability||Consistently getting the orders right; product meets quality requirements|
|Supply Chain Responsiveness||Consistent speed of providing products/services to customers|
|Supply Chain Agility||Ability to respond to changes in the market (external influences)|
|Internal Facing||Supply Chain Cost Management||Cost associated with managing and operating the supply chain|
|Supply Chain Asset Management Efficiency||Ability to efficiently utilise the supply chain’s assets in support of fulfilment|
Sharyn Grant previously managed the Supply Chain Council Australia and New Zealand (ANZ) Chapter for two years, after a one year on the ANZ Chapter Leadership Team. Sharyn has used SCOR® for 15 years, is SCOR-P certified and is currently working towards becoming Australia’s SCOR Instructor.
(Source: An adaptation of information from SCOR®, APICS Supply Chain Council)
What are 3 top challenges you have witnessed firms experience when trying to understand or implement SCOR®?
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