Supply Chain
Operations Reference-model
(SCOR)
June 2003 1
• The SCC is an independent, not-for-profit, global corporation with
membership open to all companies and organizations interested in
applying and advancing state-of-the-art supply chain management
systems and practices.
• Over 800 Company Members
• Cross-industry representation
• Chapters in Australia/New Zealand, Brazil, Europe, Japan,
North America, Southern Africa, and South East Asia with
petitions for additional chapters pending.
•The Supply-Chain Council (SCC) has developed and endorsed the
Supply Chain Operations Reference-model (SCOR) as the cross-
industry standard for supply chain management
SCOR Overview
July 2004 2
SCC Organization - Chapters and Staffing
SCC Global
Headquarters
Pittsburgh,
Pennsylvania, USA
Disney
Japan
Chapter Europe
Tokyo, Japan North Oslo, Norway
America
NEC Chapter Modus Media
South East Asia
Chapter Singapore
Venture Inc. Brazil
Chapter
Effective Southern Africa
Australia/New 9/1/03 Johannesburg, South
Zealand Chapter Africa
Sydney, Australia UTi
SCOR Overview
July 2004 3
SCC Leadership Teams
Europe Board of Directors South East Asia
Diversey Lever– C Disney - C Vemture Corporation – C
Siemens AG – VC Eaton - VC Phillips CFT – VC
Euro-Chain DaimlerChrysler MOPAR Modus Media
Bomardier Tansportation Business Process Training Center Europe Deloitte
BASF AG PeopleSoft Singapore Institute of Mfg. Technology
Borealis I2 Technologies SCM Institute
SAP AG Georgia Institute of Technology Autoscan Technology
Oracle EMEA IBM Polyolefin Company
Rhodia SCE Limited Asia Pacific Breweries
Swiss Federal Institute of ICI Supply Chain I2 Technologies
Technology Phillips Lighting iPerintis Sdn Bhd
EDS UK and SA PRTM
McCormick & Company, Inc.
HP
Australia/New Zealand North America Japan
Owens Global Logistics – C Toys R Us - C NEC – C
Health Purchasing Victoria – VC Raytheon JBC Create – VC
Oracle IBM Mitsui Global Strategic Studies
RMIT University Adjoined Consulting Olympus Optical
MI Services Avicon EXA
BHP Bayer Chemicals Chubu Electric Power
EAN Australia The Boeing Company J.D. Edwards
Center for Supply Chain Research / Penn State Nihon Unisys
Elections Pending Air Products and Chemicals Hitachi
Raytheon Hokkaido University
South Africa
SAP Matsushita Electric Industrial
Brazil Yamaha
Toray Systems Center
China
SCOR Overview
July 2004 4
Membership
Member by Type Members by Region
Europe
Practitioners Japan
SEA
Software Vendors
ANZ
Consultants
USA/Canada/Mex
Non-Profits
ROW
SAfrica
SCOR Overview
July 2004 5
Current Technical Projects
SCOR Technical Development
Steering Committee
C - Tom Phelps – HP
V – Paul Schiller – BP
Amoco
Best Practice
Returns
C- Paul Janke (Nokia)
C- Lt Col Scott Koster
(USMC)
MRO Returns
Metrics
C- Joe Burak (Boeing)
C- Michael Memmel -
Siemens
SCOR Overview
July 2004 6
Supply Chain Operations Reference-
Model (SCOR) Overview
What is a process reference model?
Process reference models integrate the well-known
concepts of business process reengineering,
benchmarking, and process measurement into a cross-
functional framework
Business Process Best Practices Process Reference
Reengineering Benchmarking Analysis Model
Capture the “as-is” state
Capture the “as-is” of a process and derive
state of a process the desired “to-be” future
and derive the state
desired “to-be” Quantify the Quantify the operational
future state operational performance of similar
performance of companies and establish
similar companies internal targets based on
and establish “best-in-class” results
internal targets Characterize the
based on “best-in- Characterize the management
class” results management practices and
practices and software solutions
software solutions that result in “best-in-
that result in class” performance
“best-in-class”
SCOR Overview performance
July 2004 8
SCOR is structured around five distinct
management processes
Plan
Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source
SCOR Model
SCOR Overview
July 2004 9
Supply-Chain Operations Reference-model
(SCOR) 6.1 - Processes
Plan P1 Plan Supply Chain
Customers
S1 Source Stocked Products M1 Make-to-Stock D1 Deliver Stocked Products
Return Return
Source Deliver
Enable
SCOR Overview
July 2004 10
SCOR Boundaries
SCOR Spans:
• All supplier / customer interactions
Order entry through paid invoice
SCOR Overview
July 2004 11
SCOR Boundaries (cont’d)
SCOR Overview
July 2004 12
SCOR Project Roadmap
Analyze Basis •Competitive Performance Requirements
Operations •Performance Metrics
of •Supply Chain Scorecard
Strategy
Competition •Scorecard Gap Analysis
•Project Plan
SCOR Level 1
SCOR Overview
July 2004 13
Mapping material flow
(S1, D1)
(SR1,DR1,DR3)
Manufacturing
Warehouse
C u s to m e r
Warehouse (S1)
(S1)
C u s to m e r
(SR1,SR3)
(S1, D1) (SR1,SR3)
(SR1,DR1,DR3)
SCOR Overview
July 2004 14
Mapping the execution processes
Americas
Distributors
S1
SR1
European
S2 M2 D2
RM Supplier
SR3
S2
M1 D1 S1 D1 S1
DR1 SR1
DR1 SR1 DR1 SR1
S1
Key Other S1 M1 D1
RM
Suppliers
Alpha Regional
RM ALPHA Warehouses Distributors
Suppliers
SCOR Overview
July 2004 15
Identifying Plan Activities
P1 P1 P1
P2 P3
P
4 P
3 P
2
P2 P P
4 4
European
S2 M2 D2
RM Supplier
Key Other S1 M1 S2 M1 D1 S1 D1 S1
RM D1
Suppliers
S1
SCOR Overview
July 2004 16
Linking Supply Chain Performance
Attributes and Level 1 Metrics
Performance Performance Attribute Definition Level 1 Metric
Attribute
Supply Chain Costs The costs associated with operating the Cost of Goods Sold
supply chain.
Total Supply Chain Management
Costs
Value-Added Productivity
SCOR Overview
July 2004 17
Level 1 Performance Metrics
Customer-Facing Internal-Facing
Delivery performance
Fill rate
Perfect order fulfillment
Order fulfillment lead time
Supply Chain Response Time
Production flexibility
Total SCM management cost
Cost of Goods Sold
Value-added productivity
Warranty cost or returns processing cost
Cash-to-cash cycle time
Inventory days of supply
Asset turns
SCOR Overview
July 2004 18
Supply Chain Scorecard & Gap Analysis
Supply Chain SCORcard Performance Versus Competitive Population
Overview Metrics SCOR Level 1 Metrics Actual Parity Advantage Superior Value from Improvements
Delivery Performance to
Supply Commit Date 50% 85% 90% 95%
Chain
Reliability
Fill Rates 63% 94% 96% 98%
EXTERNAL
Cost NA NA NA NA NA
INTERNAL
Warranty Cost
SCOR Overview
July 2004 19
Decomposing Metrics Revenue
Accounts Receivable
Cash Flow
Perfect Order
Fulfillment
Cycle Time
On Time
On Time
Delivery In Full
In Full
Performance
Docs
Docs
European Damage
RM Supplier Damage
S2 M2 D2
Supplier Perfect Order
on time delivery Fulfillment
Key Other S2
RM S1 M1 D1 M1 D1 S1 D1 S1
Suppliers
S1
SCOR Overview
July 2004 20
Performance Measurement Revenue
Accounts Receivable
Cash Flow
Perfect Order
Fulfillment
Perfect Order
Cycle Time
Inventor Fulfillment
Goal – 95%
y
Metrics Supplier Schedule Perfect Order
Conflict Supplier
on time delivery Schedule
Achievement Fulfillment
Perfect Order
on time delivery Achievement
Fulfillment Perfect Order
Actual – 85% Actual – 95% On Time
On Time Actual – 90% Fulfillment
Actual - 85%
Delivery In Full
Delivery In Full
Performance
Performance
Docs
Actual – 99% Docs
European Under-
Damage
Damage
RM Supplier D2
S2 M2 performance Supplier Perfect Order
•Process on time delivery Fulfillment
Key Other S2
•Systems Under-
RM S1 M1 D1 M1 D1 S1 D1 S1
Suppliers
performance
•Process
S1
•Systems
Alpha Regional Consume
RM Warehouses Consume
RM ALPHA Consumer
Suppliers rr
Suppliers
SCOR Overview
July 2004 21
Implementation Issues
SCOR Implementations
• Vary in scope and objective
Green Field
Distribution analysis
Planning Improvements
SCOR Overview
July 2004 22
ATT Wireless – Fixed Wireless Operations
Fixed Wireless Operations Management
Revision Y April 5, 1999
Program
Management Plan
Plan Infrastructure
Service Realization
P0.1 P0.2 P0.3 P0.4 P0.5 P0.6 P0.7
Process P0.8
Perform Make/Buy Reconfigure the Perform Long Term Perform Business Manage Product Line Manage Planning Data Perform Supply Chain
Manage Business Rules
Decision Making Supply Chain Capacity and Resource Planning Plans Bench Marking
Planning
Management
Marking
Process
P0.5.2 P0.6.2 P0.8.2
Manufacturing Planner Code Operations
Input to SRP Assignment and Policies
P0.3.2 P0.4.2 Maintenance
Operations Staffing Budget Planning P0.5.3
Manufacturing
Input to the PRP
Metaphase Product
Document Software Design Hardware Design
Structure and
Release Release Release P0.3.3 P0.5.4
Design P0.4.3
Supplier Capacity Manage Field
Standard Cost
Plan Configurations
P0.4.4 P0.5.5
Product Cost Field Change
Doc. 10888 (C0.1.0) Doc 10407 (C0.1.1) Management Management
Document Software
Product Release and Change Process Product Numbering
Archive Archive
P0.5.6
NPI Process 10093
S0.1.1 S0.1.4 - R S0.3.1 S0.9.1 S0.10.2 M0.3.1 M0.4.4 M0.5.2 M0.7.1 M0.9.1 M0.10.1 D0.1.1
M0.2.1 D0.6.1 D0.9.1 D0.10.1
Part Creation Supplier Selection Supplier PCN Strategy Stock Room M0.1.1 M0.8.1 Manage Indicative D0.3.1 D0.4.1 D0.7.1
Manage Facilities ESD Process and PCA Floor Monitor Prod. Short Term Technical Consignment New City Outbound
Process for and qualification Procedure Development Inventory Mgmt. Create CLCA Process Data CLE Provisioning Field Inv. Cycle Manage Delivery
Engineering Maintenance Audit Stock Equipment Capacity Plan Training Warehouse Process Introduction Logistics
Purchased Manufacturing Count - Quality
Change
Components Bill of Material
S0.10.3 Implementation M0.3.2 M0.5.3 M0.8.2 P0.9.2 D0.3.2 D0.4.2
S0.9.2 M0.6.2 M0.7.2 M0.10.2 D0.1.3
Supplier Maintain & System Assembly & Non Conforming Determining Base Station E&O Material
Technology Labor Tracking Asset Tracking Team Building Outbound EDI
S0.1.5 Inventory Calibrate Test Floor Stock Material Staffing Provisioning Processing D0.10.2
Management Process
Qualified Part Equipment Requirements In Transit Tracking
Teams (TMT) M0.1.6
Process Methods
S0.10.6 M0.5.6 M0.6.3 D0.1.5
Distribution D0.3.4 D0.4.3
Cycle Count Overall Material BOM Variance at M0.8.3 Product Barcode Field Returns Field Inventories
Flow Backflush Recalled Product Delivery
S0.6.3
Part Preference
M0.8.4
D0.4.4
Operations Quality
Finished Goods
Management
M0.8.5 D0.4.5
S0.5 S0.6 S0.7 S0.8 Measuring of Base Consignment
Manage Incoming Manage Supplier Manage Sourcing Authorize Supplier Faultless Installs Finished Goods
Freight Certification Business Rules Payment
M0.8.6
S0.5.2 S0.8.1 Measuring of RU
S0.6.4 Faultless Installs
Inbound Freight Accounts
Supplier Preference
Management Payable
M0.8.7
Out of Box Audit
P3.2.1
Production D4.2.1
Management Aggregate
P3.3.1
P3.1.1 D4.1.1 Resources D4.3.1
Create MPS D4.4.1
Volume Aggregate Balance
Establish
Deployment Requirements Resources with
Detailed Plans
Requirements
P3.3.2 P3.4.1
Review and Create MRP Order
Balance MPS Recommendations
Source Make to Order Material Execution M3 "Make to Order (Discrete Manufacturing)" Deliver D2 "Deliver Make to Order Products
Planning P2 "Plan Source"
S2.3.3 M3.1.2
D2.9
Program Production D2.8 D2.10 D2.11 D2.12
Load Vehicle
Parts Schedule Review Pick Staged Receive & Verify Test & Install Invoice & Receive
Product
Generate Ship Docs &
Ship
Product at Customer Site Product Payment
Legend
M3.1.3 D2.10.1 D2.11.1
D2.8.1 D2.9.1
Modify Schedule M3.5.1 Receive & Verify Test and Install
Pick Staged Load Vehicle Gen. 5.
and Execute Stage Product at CLEs
Product Ship Docs & Ship Document accepted
M3.2.1 M3.4.1 Product Warehouses
M3.3.1 M3.3.10 by RACI team and
Kitting and Package
PCB Assembly PCA Test baselined
M3.1.4 Issuing Material Menlo
Deliver Reports to
Customers M3.3.2 4.
D2.10.2 D2.12.1
Base Assembly and D2.11.2 Review by
Receive & Verify Transfer Asset to
Test Test & Install Manufacturing
Product at Installed Base
Bases Engineering
Customer Site Account
complete and
M3.3.3 M3.3.12 document sent out
RU Assembly RU Test for RACI approval
of final document
S2.1.2
Value Added 3.
M3.3.5
Distributor (VAD) Process owner is
Internal Return
Process finished writing
document.
S2.1.3 Document is
AutoReplenish awaiting
Process Manufacturing
M3.3.6 Engineering review.
Production
Operations Return
Center 2.
S2.2.4 Has a Process
Field Discrepant Owner, But the
Receipts Process is Not
M3.5.2 Documented
S2.1.4 Stage Product
External Drop Ship S2.2.5 Outside Materi al
Process Receive and Warehouses Received
1.
Verify Material E Mail
No Process Owner
and the Process is
Not Documented
SCOR Overview
Firm Inventory Inventory Set Change Forecast Material WIP Material Moves and Quality Data Move to CLEs Sales
Order Purchase Work Material
Transaction Transaction Effectivities Loaded Allocated System Truck Installed Orders
Report Orders Orders to Floor
Mfg Pro Mfg Pro Mfg Pro Mfg Pro Mfg Pro Mitron Mfg Pro Mfg Pro Mfg Pro
Mfg Pro Mfg Pro Mfg Pro Mfg Pro
23
Released Move to Base
July 2004
Sales Material Backflush
Work Finished Station
Orders Pick Lists After Test
Orders Goods Commissioned
Mfg Pro Mfg Pro Mfg Pro
Americas--->
Europe--->
Asia--->
SCOR Overview
July 2004 24
Gold’n Plump Supply Chain Planning
Updated Annual
Exec Gold'n Plump Supply Chain Leadership
Review
Business
Plan w/ action plan
utive
Planning Process Map
Sale
s
Process Inquiry & Receive, Enter, & Reserve Inventory & Strategy, Goals,
Quote Validate Order Annual Business
Determine
Delivery Date Plan
Live
Sup
plier
0-7 day Schedule
Material Deliveries
SCOR Overview
July 2004 25
F404 Engine HP Rotor Assy
DSC NADEP NAVICP NAS F/A
CV 18
Fairchild 25%
60% of
Fasteners On- Requireme Serviceable
Time nt 77%SMA Modules
Accepted, 188% of
90% of that Requirement,
Self Locking Nut
Completed Svc Engines
on time 112% of
D2 S1 D1 S1 Requirement
Serviceable
M2 D2 S1 D1 S1 Rotor
Assy
S2
(carcass)
Svc
Unserviced M2 D1
164 32 Days 98 days Engine Module
Engine
Days
S2
(carcass) Unserviceable
Rotor Assy
DR2 SR2
SCOR Overview
July 2004 26
Carter Holt Harvey – Focus on Best
Practice / Change Management
P2 P3 P4
D1
S1 M 1 M 2
D2
SCOR Overview
July 2004 27
USMC SRAC – IT Gaps and Redundancies
Transfer materiel
Order materiel
Transfer materiel
S2: Source
materiel
Schedule materiel Deliveries
Manage materiel Inventory
Determine Emerging
Supplier Technologies
Authorize Vendor Payment
28
S0: Source Infrastructure
Establish New Source
Establish New materiel
Gap in Capability
AMMOLOGS
SS07(DSSC)
MAGTFII
ATLASS
SASSY
SCS
SCOR Overview
July 2004
SCOR Projects – A Wide Range of Adoption
Consumer Foods
• Project Time (Start to Finish) – 3 months
• Investment - $50,000 US
• 1st Year Return - $4,300,000 US
Electronics
• Project Time (Start to Finish) – 6 months
• Investment - $3-5 Million US
• Projected Return on Investment - $ 230 Million US
Software and Planning
• SAP bases APO key performance indicators (KPIs) on
SCOR Model
Aerospace and Defense
• SCOR Benchmarking and use of SCOR metrics to
specify performance criteria and provide basis for
SCOR Overview contracts / purchase orders
July 2004 29
www.supply-chain.org
info@supply-chain.org