SCOR Model for supply chain excellence

The SCOR model is the supply chain operations reference model. The model helps to analyze and improve the supply chain of a company or organization. The SCOR model was developed in the 1990s by The Supply Chain Council. SCC merged with ASCM in 2014 to further develop and advance the model. Visie Partners is a consulting partner that, in collaboration with ASCM, helps companies move forward by analyzing their supply chain, and guiding supply chain transformation. For us, the supply chain operations reference in improving supply chains plays a big role to be sure of our impact.

A model for improving supply chain management

What does supply chain operations reference do?

Supply Chain Management (SCM) is a crucial role for many companies. The supply chain includes all steps to turn raw material into a product and/or service that is delivered to a customer. The SCOR model offers tools within this chain to measure performance and enable efficient analysis. These performances are summarized as performance indicators. The performance indicators are compared with each other and with other companies to find out where the supply chains can best be improved.

These improvements are based on best practices and emerging practices, more on this later in this blog. The SCOR model measures how efficient certain processes in the supply chain are for participating companies. This measurement is done with standard metrics (KPIs), which ensure that throughout the supply chain the same measurement is done. Once the performance is known, it can be compared to the performance of other companies to provide a clear understanding of supply chain performance.

The model goes beyond supply chain management to look at individual supply chain processes and how they work together. So whether it's warehouse management, equipment, and facilities, or managing production, all these elements are applied in the SCOR model frame of reference.

Plan, Source, Make, Deliver, and Return

The SCOR model identifies six processes of which a supply chain has one or more. These six processes are level 1 processes. Below each level, you will find a further breakdown with more details.On the image you can see the coherence of each of the six parts of the supply chain mentioned. The mentioned five processes centrally are the basis for every company and their internal process. Deliver from a supplier thus aligns with your own company's Source. Not all supply chain processes will include all steps.

Plan

is about describing activities for developing plans to improve the supply chain. Plan includes determining requirements, gathering information on available resources, balancing requirements and resources to determine planned capabilities and gaps in demand or resources, and identifying actions to correct these gaps in the supply chain.

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Source

Source describes the activities related to the purchase, delivery, receipt and transfer of raw materials, semi-finished products, products or services from a supplier. This is done in collaboration with suppliers. Furthermore, the delivery of goods to Make is included in the objective.

Make

Make processes describe the activities associated with converting materials into products or creating content. They include assembly, chemical processing, maintenance, repair, overhaul, recycling, refurbishment, manufacturing and other common types of material conversion processes. These can be either semi-finished or finished products.

Deliver

Deliver is about delivering to the customer and fulfilling customer order. Warehousing is an important part of delivering goods, also called fulfillment. The transportation management of products and components help with distribution. Further, deliver includes receiving, validating and creating customer orders; scheduling order deliveries; picking, packing and shipping; and invoicing and reconciling with customers.

Return

Return is about describing the activities associated with the return flow of goods. These include identifying items to be returned, deciding on the proper disposal method, scheduling the return, and shipping and receiving returned goods. Reusing materials finds its application under make, as products become a semi-finished product.

 

Enable

Under the heading Enable you will find the conditions necessary for a company to improve. Managing the supply chain and improving Training and experience, but also whether there is enough relate to the business process. These include business rules management, performance management, data management, resource management, facilities management, contract management, regulatory compliance monitoring, risk management and supply chain procurement.

3 levels of SCOR

For each Level 1 process, there are three or more distinctive Level 2 processes. Each level-2 process contains level-3 process elements. These hierarchical relationships provide process classification.

When conducting a SCOR project, SCOR users may decide to move some lower-level processes, such as those related to sourcing, delivery, and procurement, to other process sections.

SCOR model racetrack

To take advantage of the SCOR model, it is most helpful for companies to create a cycle. Each step of this racetrack helps improve supply chain operations by providing insight into the KPIs and areas of focus.

SCOR racetrack

De racetrack helpt bij het toepassen van de uitkomsten van de supply chain analyse.

SCOR training

The main course objectives of a SCOR model course are:

  • Discovering the capabilities and goals of the SCOR framework.
  • Understanding the structures of the SCOR sourcebook.
  • Discovering the 4 parts, performance, processes,
  • SCOR Model advice
  • Applying the SCOR operating model

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