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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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Supply Chain Operations Reference Model

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

Supply Chain Operations Reference Model

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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Supply Chain Operations Reference Model

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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