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SCOR Model: Supply Chain Operations Reference Cheat Sheet by

SCOR Model: Supply Chain Operations Reference
framework     model     reference     supply     scor     chain

Introd­uction

In collab­oration with manufa­ctu­rers, logistics / distri­bution service providers and software solutions suppliers Supply Chain Council introduced Supply Chain Operations Refere­nce­-model (SCOR). Numbers of companies have pooled their real-world supply chain experi­ences to build a flexible framework and a common language that can help companies improve their supply chain internally and externally

The model defines common supply chain management process, matches them against “best practices. It provides companies with powerful tool in improving supply chain operat­ions. It allows manufa­ctu­rers, suppliers, distri­butors and retailers with a framework to evaluate the effect­iveness of their supply chain operations and to target and measure specific process operations

The SCOR model was designed to enable companies to commun­icate, compare and learn from compet­itors and companies both within and outside of their industry. It not only measures supply chain perfor­mance but also effect­iveness of supply chain re-eng­ine­ering. Further it has the ability to test and plan future process improv­ements.

The Supply Chain Operations Refere­nce­-model (SCOR) is a process reference model. At the core of this model is a “pyramid of four levels” that represents the path a company takes on the road to supply­-chain improv­ement:

Level 1: Plan, Source, Make

Provides definition of the Plan, Source, Make, and Deliver process types. Here a company establ­ishes its supply­-chain compet­itive object­ives. The basic structure of the refere­nce­-model focuses on the four key supply­-chain processes:

Plan: Under this process the company should assess supply resources, aggregate and prioritise demand requir­ements, plan inventory, distri­bution requir­ements, produc­tion, material and rough-cut capacity of all products and all channels. Make/buy decisions are evaluated under this heading. Decision related to long term capacity and resource planning, product phase in / phase out are undertaken in this phase.

Sour­ce: Under this process sourcing infras­tru­cture is managed. Various activities like vendor certif­ication and feedback, sourcing quality monito­ring, vendor contracts are conducted. Also activities involved with receiving of material like: obtain, receive, inspect, hold and issue material are under taken here.

Make: This process is concerned with produc­tion, execution and managing “make” infras­tru­cture. Specif­ically under production execution activities like manufa­ctu­ring, testing, packaging, holding and releasing of product are undertaken here. Under managing “ make” infras­tru­cture, engine­ering changes, facilities and equipment manage­ment, production status, production quality, shop schedu­lin­g/s­equ­encing and short-term capacity are planned and managed.
 

Score Model

Level 1: Deliver

This process consists of order manage­ment, warehouse management and transp­ort­ation manage­ment. Under order management activities like mainta­ining and entering orders, generating quotat­ions, config­uring product are undert­aken. Further create and maintain customer database, maintain product and price database, managing receiv­ables and credit management also fall under this domain.
Warehouse manage­ment: Acti­vities like pick up, package, creating customer specific packag­ing­/la­beling and shipment of products fall under the gamut of warehouse manage­ment.
Transportation and delivery infras­tru­cture manage­ment: Acti­vities like traffic manage­ment, freight management are undert­aken.

Delivery infras­tru­cture encomp­asses of channel management rules, order management rules and managing delivery invent­ories and managing delivery quality.

Level 2-4

Level 2: Defines 26 core process categories that are possible components of a supply chain. Organi­zations can configure their ideal or actual operations using this process.
Level 3: provides the inform­ation required for succes­sfully planning and setting goals for supply­-chain improv­ements. This includes defining process element, setting target benchm­arks, defining best practices, and system software capabi­lities to enable best practices.
Level 4: focuses on implem­ent­ation, i.e. putting specific supply­-chain improv­ements into action. These are not defined within industry standard model as implem­ent­ation can be unique to each company.
Refer to http:/­/su­ppl­y-c­hai­n.org/ for more inform­ation on this model.

Process Reference Model

Integrate the concepts of business process reengi­nee­ring, benchm­arking, and process measur­ement into a cross-­fun­ctional framework.
helps capture the "­as-­is" state of a process with the objective to achieve the desired "­to-­be" future state.
Allows quanti­fying the operat­ional perfor­mance, establish internal targets based on "­bes­t-i­n-c­las­s" results in similar companies.
Describes standard management processes, exploring relati­onship among different processes.
Defines standard metrics to measure process perfor­mance and management practices that produce the best-i­n-class perfor­mance.
Characterizes management practices and software solutions that result in "­bes­t-i­n-c­las­s" perfor­mance.
Process reference helps capture complex management processes for organi­zations to be able to commun­icate unambi­guo­usly, measure, manage, and tune specific process.

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