Supply Chain Operations Reference (SCOR®) model

A growing supply chain wide measurement and improvement tool is the Supply Chain Operations Reference (SCOR®) model designed to measure cross-functional, cross-company supply chain processes at various levels.

APICS Dictionary, 15th edition, defines SCOR® model as:

‘…a cross-industry, standard diagnostic tool for supply chain management. The SCOR model describes the business activities associated with satisfying a customer’s demand, which include plan, source, make, deliver, and return…’

Unique to SCOR® is the focus on integrated processes (plan, source, make, deliver, return and enable) rather than individual (siloed) functions. Specifically SCOR® includes:

  • All customer interactions (order-to-cash cycle)
  • All product transactions (logistics)
  • All market interactions (forecasting thru order fulfillment)

and SCOR® excludes:

  • Sales and Marketing
  • Research and Development
  • Product Development
  • Customer Support (some elements)
  • Training
  • Quality
  • Information Technology
  • Administration

SCOR® is typically a strategic initiative lead by management to enhance their understanding of their supply chains and associated processes with the goal of improving systems and practices related to internal operations and links to suppliers and customers. SCOR starts with 3 standard Levels with a fourth defined on a company by company basis.

Level 1 metrics are grouped by five supply chain performance attributes, Reliability, Responsiveness, Agility, Costs, and Asset Management. Each Level 1 process is supported by two more levels, Level 2 are operational metrics and Level 3 are individual processes used as change levelers to impact Level 1 improvements.

Of specific interest to the CLTD and CSCP student is a measure of Reliability, Perfect Order Fulfillment; how reliably can the company’s supply chain fulfill a Perfect Order. Perfect Order Fulfillment and Perfect Order are covered in another blog post on APICS CLTD Coach.

In summary SCOR®:

  1. Is A strategic initiative
  2. Considers integrated processes both internal and external to the company
  3. Is designed to help measure and improve supply chains

Stay tuned to http://www.apicsatlanta.org for upcoming workshops on SCOR® in the Atlanta area where you can learn more about using the SCOR® model and setting up continuous improvement initiatives for your organization. Click here for a video introduction to SCOR.

 

 

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