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Supply Chain Operations Reference Model (SCOR)
SIES EPGPBM- Group 4
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Supply Chain Operations Reference Model
Developed by Supply Chain Council (SCC)
SCC: Independent, not-for-profit corporation organized in 1996 by:
Global management-consulting firm, Pittiglio Rabin Todd & McGrath (PRTM)
and Market research firm, Advanced Manufacturing Research (AMR) in
Cambridge, Massachusetts.
Started with 69 voluntary companies; now close to 1000 members.
SCC Objective: To develop a standard supply-chain process reference model
enabling effective communication among the supply chain partners, by
Using standard terminology to better communicate and learn the supply
chain issues
Using standard metrics to compare and measure their performances
What is SCOR?
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Supply Chain Operations Reference Model
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-functionalframework
Quantify theoperationalperformance ofsimilar companiesand establish
internal targetsbased on best-in-class results Characterize the
managementpractices andsoftware solutionsthat result in best-in-classperformance
Capture the as-isstate of a processand derive thedesired to-befuture state
Quantify the operationalperformance of similarcompanies and establishinternal targets based onbest-in-class results
Characterize themanagement practicesand software solutionsthat result in best-in-class performance
Benchmarking Best PracticesAnalysis
Process ReferenceModel
Business ProcessReengineering
Capture the as-is stateof a process and derivethe desired to-befuture state
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The Primary Use of SCOR:
To describe, measure and evaluate supply chain configurations.
SCOR contains:
Standard descriptions of management processes
A framework of relationships among the standard processes
Standard metrics to measure process performance
Management practices that produce best-in-class performance
Enables the companies to:
Evaluate and compare their performances with other companieseffectively
Identify and pursue specific competitive advantages
Identify software tools best suited to their specific processrequirements
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Basic Management Processes
Plan-Source-Make-Deliver-Return provide the organizational structure of the SCOR-model
Supplier CustomerCustomers
Customer
Suppliers
Supplier
MakeDeliverSource Make
DeliverMakeSourceDeliver SourceDeliver
Internal or External Internal or External
Your Company
Source
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Plan
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Scopes ofBasic Management Processes
Plan
Processes that balance aggregate demand and supply to develop a courseof action which best meets sourcing, production and deliveryrequirements
Balance resources with requirements
Establish/communicate plans for the whole supply chain
Source
Processes that procure goods and services to meet planned or actualdemand
Schedule deliveries (receive, verify, transfer)
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Make
Processes that transform product to a finished state to meet planned oractual demand.
Schedule production.
Deliver
Processes that provide finished goods and services to meet planned oractual demand, typically including order management, transportationmanagement, and distribution management.
Warehouse management from receiving and picking product to load andship product.
Return
Processes associated with returning or receiving returned products.
Manage Return business rules.
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Make
Processes that transform product to a finished state to meet planned oractual demand.
Schedule production.
Deliver
Processes that provide finished goods and services to meet planned oractual demand, typically including order management, transportationmanagement, and distribution management.
Warehouse management from receiving and picking product to load andship product.
Return
Processes associated with returning or receiving returned products.
Manage Return business rules.
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What challenges do companies face as they try to improve supply-chain management?
Improving a process as complex as the supply-chain can be daunting, as companies are
challenged with finding ways to meet ever-rising customer expectations at a
manageable cost. To do so, businesses must identify which parts of their supply-chain
process are not competitive, understand which customer needs are not being met,
establish improvement goals, and rapidly implement necessary improvements.
Industry has long lacked a standard way to measure supply-chain performance. Because
of this, manufacturers and service providers were unable to use a common assessment
tool benchmarking in the effort to improve their performance. Moreover, the lack
of a common means to describe supply-chain processes rendered software selection
difficult and usually expensive.
Instead of finding the right tools for improving specific competitive gaps, businesses
often made huge investments in software that failed to address their particular problem.
All too often, available software products forced companies (often unwittingly) to
revamp their supply-chain processes to suit some default criteria.
CHALLENGES
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Software Package for Modeling SCOR: ARIS EasySCOR
The ARIS Toolset and ARIS Easy Design are process modeling tools. The ARISToolset is a BPR tool, Easy Design is used for process capture.
The EasySCOR Modeler is a software package that includes the ARIS Easy
Design modeling kit and the SCOR model in ARIS format.
ARIS EasySCOR consists of process models that describe the SCOR levels 1 to
3. Implementation level, level 4 is not included.
CASESTUDY- ARIS EasySCOR
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Process Map Example created in ARIS EasySCOR
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ADVANTAGES
Rapidly map own supply chain
Illustrate current supply-chain configurations
Establish common reference point and definitions
Communicate effectively with suppliers and customers
Compare process performance to targets
Benchmark metrics across multiple industries
Compare existing practices to industry best practices
Implement supply-chain process improvements
Purpose-built to meet strategic objectives
Fine Tune based on pilot results and changing market needs
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ADVANTAGES
Influence creation of desired software products
Communicate needed product features to software vendors
Identify supply-chain management improvement opportunities
Identify gaps in current processes Quantify the potential benefits of specific process improvements
Provide data for project financial justifications
Determine required information systems capabilities
Identify software vendors providing required capabilities
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