Scor Overview v2 0

SCOR PROFESSIONAL TRAINING
Introduction to the SCOR Supply Chain

Operations Reference Model: Overview
Introduction: Course Leader
Name
Company/organization
Position
Instructor APICS certifications
Introduction
Experience with SCOR
Other accomplishments
APICS training experience
2 © 2017 APICS. All rights reserved.

Introductions: Participants
Name
Company/organization
Position
APICS certifications
Introduce
yourself Other accomplishments
SCOR experience
Your objectives

Learning Objectives
▪ Explore the origins and goals of the SCOR Reference Model framework.
▪ Understand the structure of the SCOR Reference Model framework
sourcebooks.
▪ Work with the five central parts of the SCOR framework: performance,
processes, practices, people, and green SCOR.
▪ Develop and work with a SCOR improvement program.

SCOR OVERVIEW
Introduction to the SCOR Framework

What is SCOR?
SCOR is an acronym for supply chain operations reference model, which was
developed to assist businesses in understanding, structuring, and evaluating the
performance of supply chains.

SCOR Definition
The SCOR model describes the business activities associated with satisfying a
customer’s demand, which include plan, source, make, deliver, and return. Use of the
model includes analyzing the current state of a company’s processes and goals,
quantifying operational performance, and comparing company performance to
benchmark data. SCOR has developed a set of metrics and best practices
information that companies can use to evaluate their supply chain performance.
APICS Dictionary

About SCOR: A Process Framework
Combining four techniques into a single integrated approach
Business Process Performance Benchmarking Best Practices Analysis Organizational Design

Improvement
Capture the “as-is” Quantify relative Identify practices and Assess skills and
business activity and performance of similar software solutions that performance needs and align
design the future “to-be” supply chains and establish result in significantly better staff and staffing needs to
state internal targets performance internal targets
Process Reference Framework
Process Performance (metrics) Practices People (skills)

Anatomy of SCOR Frameworks
Product and process design

(DCOR)
Sales and support

(CCOR)
Supply chain Management for supply chain

operations (M4SC)
reference model
Product life cycle operations reference (PLCOR)

SCOR Reference Sources
Complete SCOR Model Reference sourcebooks. Two

volumes containing the complete SCOR reference
framework
A quick reference guide providing a detailed

summary of SCOR Processes, Metrics, Practices,
and People on a single easy-to-use card
An easy to access and use application for mobile

devices available through iTunes, App Store, and
Android Store – Search: APICS SCOR

Advantages of Using the SCOR Framework
 Scope of the SCOR framework applies to the entire supply chain
 Orients supply chain improvements around standardized set of performance,
process, practice, and skills metrics
 Enables supply chain performance and practice benchmarking
 Centers supply chain improvement efforts on creating value for customers
 Applies detailed supply chain metrics to measure supply chain performance
 Provides metric and activity alignment across organizational boundaries
 Establishes a common repository of supply chain performance terms and toolsets

SCOR OVERVIEW
Using the SCOR Reference Sourcebook

Structure of the SCOR Reference Sourcebook
The SCOR reference sourcebook consists of five main sections:
Standard metrics to describe process performance and define
Performance
strategic goals
Standard descriptions of management processes and process
Processes
relationships
Management practices that produce significant better process
Practices
performance
Standard definitions for skills required to perform supply chain
People
processes
Standard definitions for sustainable business models and
Green
environmental accounting

SCOR Codification
• Each of the four SCOR sourcebook sections has its own codification nomenclature.
• SCOR Performance and Processes have a hierarchy of SCOR activities.
• SCOR Practices are determined by three separate practices: emerging, best, and
standard. Each practice contains a set of relevant practice activities.
• SCOR People are determined by a single-level list of skills and processing
activities.
• Green SCOR is determined by a single-level list of skills and processing activities.
• Most of the SCOR activities are crossed referenced across the four SCOR
sourcebook sections.

Reading SCOR Tables
ID name
definition
metrics
practices
skills
outputs
inputs

Reading SCOR Graphics
process ID SCOR graphics

should be
process steps considered as
example process
configurations.
Different supply
chains and
practices may
require different
inputs sequences and/
or workflow.
outputs

SCOR OVERVIEW
Review of SCOR Performance

Objectives of SCOR Performance
Performance (SCOR section 1) helps companies:
 Translate business strategy to supply chain strategy: How closely is the supply
chain strategy meeting business plan objectives?
 Measure supply chain performance: How are we doing, how are we trending?
 Understand relative performance compared to competitors: How are we doing
compared to our supply chain strategy
 Identify and monitor processes that most likely cause the performance gaps:
What improvement targets should we pursue?

Supply Chain Performance: Definitions
Definitions:
• Performance attribute: a characteristic used to describe a strategy. Performance attributes serve as
classification for metrics and formulate strategic direction
• Key performance indicator (KPI): a metric to measure the overall performance or state-of-affairs.
SCOR level 1 metrics are considered KPIs
• Metric: a standard for measurement
• Measurement: an observation that reduces the amount of uncertainty about the value of a
quantified metric
SCOR metrics = diagnostic metrics
• Monitor and diagnose overall supply chain health.
• Diagnostic relationships (hierarchy) enables gap analysis.

SCOR Performance Attributes
Attribute Strategy
Reliability (RL) Consistently getting the orders right, product meets quality
requirements
Customer
Responsiveness (RS) The consistent speed of providing products/ services to

customers
Agility (AG) The ability to respond to changes in the market (external
influences)
Cost (CO) The cost associated with managing and operating the supply
Internal
chain
Assets (AM) The effectiveness in managing the supply chain’s assets in
support of fulfillment

SCOR Performance Attributes: Level 1
Attribute Level 1 Strategic Metrics

Reliability RL.1.1 Perfect order fulfillment
Responsiveness RS.1.1 Order fulfillment cycle time

Customer
AG.1.1 Upside supply chain flexibility
AG.1.2 Supply chain upside adaptability

Agility
AG.1.3 Downside supply chain adaptability
AG.1.4 Overall value at risk (VAR)

Cost CO.1.001 Total cost to serve
Internal
AM.1.1 Cash-to-cash cycle time

Asset management
efficiency AM.1.2 Return on supply chain fixed assets
AM.1.3 Return on Working Capital

SCOR OVERVIEW
Review of SCOR Processes

Anatomy of SCOR Processes
Plan
Customer processes
Supplier processes
Source Make Deliver
Return
Process, arrow indicates material flow direction
Enable Process, no material flow
Information, goods, financial flow

Objectives of SCOR Processes
SCOR Processes help companies:
 Document the consensus view of how the business and the enterprise supply
chain is organized—What do we do and where? (as-is)
 Document the consensus view of the capabilities of the business and the
enterprise supply chain—How do we do this? (as-is)
 Document and test alternative ways to organize the business and the enterprise
supply chain—Test different scenarios (what-if)
 Document the desired way to organize the business and the enterprise supply
chain—What will we do and where? (to-be)
 Document future processes—how will we do this going forward? (to-be)
SCOR Processes and the Supply Chain
Plan
Plan Plan
Deliver Source Deliver Source Make Deliver Source Deliver Source

Make Make
Return Return Return Return Return
Return
Enable Return Enable Enable
Suppliers’ Return Customer’s
Supplier Customer
Supplier Internal or external Your organization Internal or external Customers
The integrated process of plan, source, make, deliver, return, and enable
spanning from the suppliers’ supplier to the customers’ customer

Question: Source Process Flows
 Which of the following flows is/are correct?
sS2.1
sS2.1 sS2.5
sS2.2 sS2.3 sS2.4
Schedule
Schedule Authorize
Receive Verify Transfer
Product
Product Supplier
Product Product Product
Deliveries
Deliveries Payment
sS2.1
sS2.1 sS2.5 sS2.2 sS2.4
sS2.3
Schedule
Schedule Authorize Receive Transfer
Verify
Product
Product Supplier Product Product
Product
Deliveries
Deliveries Payment
sS2.1
sS2.1 sS2.4 sS2.5
sS2.2
Schedule
Schedule Transfer Authorize
Receive
Product
Product Product Product Supplier
Deliveries
Deliveries Payment

SCOR OVERVIEW
Review of SCOR Practices

Introduction to SCOR Practices: Definition
The Practices section of the SCOR reference manual provides a collection of industry-neutral
practices companies have recognized for their value. A practice is a unique way to configure a
process or set of processes.

Four Types of SCOR Practices: Definitions
• Emerging practice: a practice that introduces new technology, knowledge, or radically different
ways of organizing processes
• Best practices: practices that are current, structured, and repeatable and have a proven and
positive impact on supply chain performance
• Standard: practices that have been used by a wide range of businesses over a long period of
time and that produce acceptable, positive results
• Declining: practices that have been used for long periods of time but have become obsolete
and even harmful to business and supply chain performance

Classification of Practices
Practices by classifications:  order management
 business process analysis/improvement  people management (training)
 customer support  planning and forecasting
 distribution management  product lifecycle management
 information management
 purchasing
 inventory management
 reverse logistics
 manufacturing/production
 risk/security management
 material handling
 sustainable supply chain management
 new product introduction
 transportation management
 order engineering (ETO)
 warehousing

Levels of SCOR Practices
Emerging Standard
Best practices
practices practices
SCOR practices repository
SCOR processes
SCOR Level 2 processes Level 3 processes
practices Application

Best Practice Selection
Are all best practices equally important for you?
– SCOR contains more than 170 practices today: do you need all?
– Implement a best practice IF it makes sense for your specific processes, business,
or industry.
Low effort/risk High effort/risk How to determine fit?
 Assign each best practice a pin.
High return
quick Sponsor
wins issue  Determine risk, investment.
 Determine return.
 Push the pin in the resulting quadrant.
Low return
consider
nice to have
carefully  Some pins may not make the table at all if they are not
appropriate for your supply chain, business or industry.

Example: Practices Benchmarking
Benchmarking results for a benchmark of 5 supply chains
120
100
80 Not Relative
UnPlanned
60
Planned
40
In Process
Mature
20
0
A B C D E

SCOR OVERVIEW
Review of SCOR People

Introduction to SCOR People: Definition
The People section of the SCOR reference manual introduces standards for managing talent in
the supply chain. This skills management framework within SCOR compliments process
reference, metrics reference, and practice reference components with an integrated view of
supply chain skills.

Key Elements of the People Section
 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

SCOR Competency Levels
The state or quality of being qualified, having the ability to perform a specific role
Level Characteristics
Intuitive understanding of the situation and zooms in on the central
Expert aspects; experts understand what is possible and apply experience and
knowledge to master new situations.
Sees the situation as a whole and acts from personal knowledge and
Proficient conviction; proficients can prioritize importance based on situational
aspects.
Goal oriented; possesses the skills to perform necessary understands
Competent
activities and can determine priorities to reach goals
Has fully not mastered work skills and has a limited "situational
Beginner
perception" of work activities
New to the field or activity; a novice needs standard/written procedures or
Novice step-by-step detailed instructions; no ability to make judgments based on
problem situations

SCOR People Competency Grid
Linking People competencies to SCOR.
Novice Beginner Competent Proficient Expert
Instructions Written Familiar Familiar Familiar Familiar
Orientation Task Task Goal Goal Goal
Decision
Analytical Analytical Analytical Intuitive Intuitive
making
Problem
Measuring Measuring Measuring Measuring Intuitive
recognition
In SCOR
terms, focus Processes Practices Metrics Projects Domains
on:

Defining Skills
 Each skill is defined by its description

Perform-
ance  And by association to: experiences,
(metric)
training and aptitudes
 Experiences, training, and aptitudes
Experience are not directly connected to any
Process
other framework element.
Practice People
(best Aptitude
practice) (skill)
Training

SCOR OVERVIEW
Review of Green SCOR

Introduction to Green SCOR: Definition
The Green SCOR section of the SCOR reference manual introduces a set of strategic
environmental metrics that effectively allow the SCOR Model to be used as a
framework for environmental sustainability and audit.

The Five Green SCOR Metrics
Metric Units Basis
This is the unit of measure currently used for green house
Carbon Tons CO2
gas emissions and is a measure of the climate impact from
Emissions equivalent
CO2 and other global warming air emissions.
This includes emissions of major pollutants—Cox, Nox, Sox,
Air pollutant
Tons or kg Volatile Organic Compounds (VOC) and Particulate. These
emissions
are the major emissions that the US EPA tracks.
This includes waste that is either disposed of or released to
Liquid waste
Tons or kg open water or sewer systems (these emissions are
generated
generally listed on water emission permits).
Solid waste
Tons or kg The total solid waste generated by the process
generated
Percent
recycled Percent The percent of the solid waste that is recycled
waste

Green SCOR Levels 1 and 2
GS.1.001 Total Supply chain carbon footprint

Level 1
GS.1.002 Total supply chain environmental footprint
GS.2.001 Plan carbon emissions

GS.2.002 Source carbon emissions
GS.1.001 GS.2.003 Make carbon emissions
GS.2.004 Deliver carbon emissions
GS.2.005 Return carbon emissions
Level 2
GS.2.006 Total supply chain air emissions
GS.2.007 Total supply chain liquid emissions
GS.1.002
GS.2.008 Total supply chain solid emissions
GS.2.009 Total supply chain percent recycled

Green SCOR Level 3
GS.2.001 Plan carbon emissions 5 Level 3 Metrics

GS.2.002 Source carbon emissions 2 Level 3 Metrics
GS.2.003 Make carbon emissions 2 Level 3 Metrics
GS.2.004 Deliver carbon emissions 2 Level 3 Metrics
GS.2.005 Return carbon emissions 2 Level 3 Metrics
GS.2.006 Total Supply chain air emissions 5 Level 3 Metrics

GS.2.007 Total Supply chain liquid emissions 5 Level 3 Metrics
GS.2.008 Total Supply chain solid emissions 5 Level 3 Metrics
GS.2.009 Total supply chain percent recycled 6 Level 3 Metrics

Green SCOR Table: Level 2

SCOR OVERVIEW
SCOR Improvement Program:

Concepts and Practices
Applying the SCOR Framework
How do project teams use the SCOR Reference Model framework to create and
continuously apply a program capable of achieving sustainable supply chain
improvement?

SCOR Improvement Program Racetrack

SCOR Improvement Program Workshop Objectives
 Learn how to organize a SCOR supply chain improvement program.
 Learn how to use the SCOR Model Reference framework to develop an effective supply chain improvement program.
 Develop an understanding of the typical steps of a SCOR improvement program.
 Develop an understanding of how to use the SCOR supply chain improvement program racetrack.
 Develop knowledge and skills to complete key implementation program deliverables.
 Explore a case study illustrating the application of the SCOR program racetrack and the SCOR framework.

SCOR Global Organization: Example
Corporate
Support
Merchandising
Americas
Operations
Planning
Sales
EMEA
APAC
Americas= North, Middle and South America, EMEA = Europe, Middle East & Africa, APAC = Asia and Pacific

Supply Chain Definition Matrix: Example
Criteria: geographical region, country, products
Customers: GE GB SEU
Mp3 Inc. Germany Belgium Nether- England France Italy Spain
product lands and
groups Ireland
Mp3
300* 125 95 265 110 75
players
Phones 200 95 planned 250 185 55
PCs 35 21
* Sales expressed in millions
Adapted from Supply Chain Excellence by Peter Bolstorff and Robert Rosenbaum ©2012 Peter Bolstorff
and Robert Rosenbaum, AMACOM books, division American Management Association International, New
York, NY, p. 47.

Supply Chain Geographic Map: Example
Supply Chain Geographic Map
North Warehouse
S-Mart [sS1, sD1]
[sS1]
Packit
[sD]
Auto Bros Corrugated
[sS1] [sD]
CostKing
[sS1]
Central Warehouse (W1)

[sS1, sM1, sD1]
CarFix
Oilco International
[sS1]
[sD]

SCORmark™ Benchmarking: Example

SCORmark™ Benchmarking: Level 2 Metrics

Future State Map: Example
1 North Warehouse 7
S-Mart [sS1, sD1]
[sS1]
Packit
[sD]
2
Auto Bros Corrugated
[sS1] [sD]
2
CostKing
[sS1]
13 Central Warehouse (W1)

[sS1, sM1, sD1]
2 CarFix
Oilco International
[sS1]
[sD]
5 The number represents inventory days of supply owned by Sample, Inc.

Future State Thread Diagram
sP1 sP
sP
sP sP2 sP3 sP4 sP4 sP

sP
3 2 1 7 7 1 2 2 2
sD sS1
sS1 sS1 sD1 sS1

sD
sM1 sD1 sS1
sD sS1
sS1
Oilco Packit Corrug W1 Central Warehouse W3 North S-Mart Auto Cost Carfix
ated Warehouse Bros king
Supplier Sample, Inc. Customers

5 The number represents inventory days of supply owned by Sample, Inc.

Alternative Process Workflows: Example

Prioritization Matrix
Low Effort & Risk High A. CPFR

1. Retail sales out data
High
2. Retail inventory data

A1 A
2 3. Retail promotions data
4. Group promotions data
E A3
B. Monthly management review
A4
1. Aging status flags
Return
B 2. Aging reporting
3. Monthly review
C. 24-hour testing equipment
D
D. Return ownership transfer
C
E. Renegotiate contracts
Low

Return on Investment: CPFR Projects
Initial Annual incremental
Factors
Year 1 Year 1 Year 2 Year 3
CPFR Project 150 000
Software licensing 100 000 12 500 12 500 12 500
Total Cost 250 000 12 500 12 500 12 500
Inventory reduction 42 000 42 000 42 000

Reduction in expedited shipments 10 500 10 500 10 500
Lost revenue due to stock outs 48 750 48 750 48 750
Total opportunity 101 250 101 250 101 250
Net Value -161 250 -72 500 16 250

Return on Investment -61 % -26 % 6%

Begin Next Improvement Project

Continue the Conversation
Peter Bolstorff, CSCP, SCOR-P Dominic Longo, CSCP – Key Account Business Development
▪ Executive Vice President, Corporate Development ▪ Director, Corporate Development
▪ APICS ▪ APICS
▪ pbolstorff@apics.org ▪ dlongo@apics.org
Carolyn Lawrence, SCOR-P – SCOR Product Group Josh Meyers, CSCP – Key Account Business Development
▪ Director, Corporate Development ▪ Director, Corporate Development
▪ APICS ▪ APICS
▪ clawrence@apics.org ▪ jmeyers@apics.org
Melinda Spring, SCOR-P – Research Projects

▪ Director, Corporate Programs
▪ APICS
▪ mspring@apics.org

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SCOR PROFESSIONAL TRAINING

Introduction to the SCOR Supply Chain

APICS training experience

2 © 2017 APICS. All rights reserved.

3 © 2017 APICS. All rights reserved.

4 © 2017 APICS. All rights reserved.

Introduction to the SCOR Framework

6 © 2017 APICS. All rights reserved.

7 © 2017 APICS. All rights reserved.

Combining four techniques into a single integrated approach

Business Process Performance Benchmarking Best Practices Analysis Organizational Design

Process Reference Framework

Process Performance (metrics) Practices People (skills)

8 © 2017 APICS. All rights reserved.

Product and process design

Sales and support

Supply chain Management for supply chain

Product life cycle operations reference (PLCOR)

9 © 2017 APICS. All rights reserved.

Complete SCOR Model Reference sourcebooks. Two

A quick reference guide providing a detailed

An easy to access and use application for mobile

10 © 2017 APICS. All rights reserved.

11 © 2017 APICS. All rights reserved.

Using the SCOR Reference Sourcebook

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14 © 2017 APICS. All rights reserved.

15 © 2017 APICS. All rights reserved.

process ID SCOR graphics

16 © 2017 APICS. All rights reserved.

Review of SCOR Performance

18 © 2017 APICS. All rights reserved.

19 © 2017 APICS. All rights reserved.

Responsiveness (RS) The consistent speed of providing products/ services to

20 © 2017 APICS. All rights reserved.

Attribute Level 1 Strategic Metrics

Responsiveness RS.1.1 Order fulfillment cycle time

AG.1.1 Upside supply chain flexibility

AG.1.2 Supply chain upside adaptability

AG.1.4 Overall value at risk (VAR)

AM.1.1 Cash-to-cash cycle time

AM.1.3 Return on Working Capital

21 © 2017 APICS. All rights reserved.

Review of SCOR Processes

Source Make Deliver

Process, arrow indicates material flow direction

Enable Process, no material flow

Information, goods, financial flow

23 © 2017 APICS. All rights reserved.

Deliver Source Deliver Source Make Deliver Source Deliver Source

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26 © 2017 APICS. All rights reserved.

Review of SCOR Practices

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30 © 2017 APICS. All rights reserved.

SCOR practices repository

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Review of SCOR People

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 Experience: The knowledge or skill acquired by