The Supply Chain Operations Reference (SCOR) model provides a unique framework that links performance metrics, processes, best practices, and people into a unified structure. The framework supports communication between
Supply Chain Operational Reference (SCOR) model is the standard reference process model developed by the Supply Chain Council (SCC) that has become the cross-industry standard for supply chain management.
The SCOR model depicts the basic supply chain, ranging from supplier's supplier to customer's customer, as a series of linked Source Make Deliver execution processes managed by a series of planning processes
The SCOR model The SCOR model contains five core management processes: Plan: Balance aggregate demand and supply to develop a course of action that best meets sourcing, production, and delivery requirements. Source: Procure goods and services to meet planned or actual demand. Make: Transform a product into a finished state to meet planned or actual demand (DoD incorporates the Maintain/Repair process in the commercial Make process.) Deliver: Provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management. Return: Return or receive returned products for any reason and extend into post-delivery customer support. Note that the Return process was recently added to the model based largely on the efforts of the Aerospace and Defence Special Interest Group (SIG), which includes several DoD organizations, that convinced other members of the importance of return (or reverse, retrograde) logistics.
SCOR contains:
Standard descriptions of management processes A framework of relationships among the standard processes Standard metrics to measure process performance Management practices that produce best-in-class performance
Level
#
1
Comments Level 1 defines the scope and content for the Supply chain Operations Reference-model. Here basis of competition performance targets are set.
Deliver Return
Return
2
A companys supply chain can be configuredto-order at Level 2 from the core process categories. Companies implement their operations strategy through the configuration they choose for their supply chain. Level 3 defines a companys ability to compete successfully in its chosen markets, and consists of: Process element definitions Process element information inputs, and outputs Process performance metrics Best practices, where applicable System capabilities required to support best practices Systems/tools
P1.3
Balance Production Resources with Supply-Chain Requirements
P1.4
Establish and Communicate Supply-Chain Plans
P1.2
Identify, Assess, and Aggregate Supply-Chain Requirements
Not in Scope
Companies implement specific supply-chain management practices at this level. Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions.
Customer-Facing
Supply Chain Reliability Responsiveness Flexibility
Internal-Facing
Cost
Assets
P1: Plan Supply Chain P2-P5: Plan SCOR Process S1: Source Stocked Product S3: Source Engineer-to-Order Product S2: Source Make-to-Order Product M1: Make-to-Stock M2: Make-to-Order M3: Engineer-to-Order D1: Deliver Stocked Product D2: Deliver Make-to-Order Product D3: Deliver Engineer-to-Order Product D4: Deliver Retail Product (New in Version 6.0) SR1/DR1: Return Defective Product (Source Return/Deliver Return) SR2: Source Return MRO Product (Maintenance, Repair and Overhaul) DR2: Deliver Return MRO Product SR3/DR3: Return Excess Product (Source Return/Deliver Return) EP, ES, EM, ED, ER: Enable corresponding SCOR Processes
Example Continued Process Number: S1 Process Category: Source Stocked Product Process Category Definition
The procurement, delivery, receipt and transfer of raw material items, subassemblies, product and or services.
Performance Attributes Reliability Responsiveness Flexibility Metric % Orders/lines processed complete Total Source Cycle Time to Completion Time and Cost related to Expediting the Sourcing Processes of Procurement, Delivery, Receiving and Transfer. Product Acquisition Costs Inventory DOS Features None Identified
Cost Assets Best Practices Joint Service Agreements Alliance and Leverage agreements
Example Continued
Process Element Number: S1.4 Process Element: Transfer Product Process Element Definition The transfer of accepted product to the appropriate stocking location within the supply chain. This includes all of the activities associated with repackaging, staging, transferring and stocking product. For service this is the transfer or application of service to the final customer or end user. Performance Attributes Reliability Metric % Product transferred damage free % Product transferred complete % Product transferred on-time to demand requirement % Product transferred without transaction errors Transfer Cycle Time Time and Cost Reduction related to Expediting the Transfer Process. Transfer & Product storage costs as a % of Product Acquisition Costs Inventory DOS
Best Practices
Drive deliveries directly to stock or point-ofuse in manufacturing to reduce costs and cycle time Capability Transfer to Organization
Features
Pay on receipt Specify delivery location and time (to the minute) Specify delivery sequence None Identified
Example Continued
Plan
Source
Make M
Deliver D
ES.4
EM ED
Source ES.4
Suppliers Supplier
Suppliers
Assemble/ Package
Distribution Centers
Americas--->
Europe--->
Asia--->
Observations
SCOR describes processes not functions. In other words, the Model focuses on the activity involved, not the person or organizational element that performs the activity. Implementation level, Level 4, is not described in SCOR.
References
SCOR 6.0 Overview Booklet
http://www.isye.gatech.edu/~lfm/8851/Sources/SCOR/SCOR%206.0% 20OverviewBooklet.pdf
About ARIS:
About ARIS:
http://www.changeware.net/esitteet/scor-faq.pdf
http://www.changeware.net/esitteet/scor-faq.pdf