You are on page 1of 34

Supply-Chain Operations

Reference-model

SCOR Overview
PLAN SOURCE MAKE DELIVER RETURN

Version
SCOR is a registered trademark of the Supply-Chain Council
in the United States and Europe 9.0
Supply-Chain Operations
Reference-model
TABLE OF Section One:
What is a Process Reference Model? 1
CONTENTS Section Two:
Model Scope and Structure 3
Section Three:
Applying the Model 15
The Concept of Configurability 15
Modeling with SCOR 16
Business Scope Diagram 17
Geographic Map 18
Thread Diagram 19
Process Models 20

The Supply-Chain Operations Reference-model (SCOR) is the product of the Supply-Chain


Council (SCC), an independent, not-for-profit, global corporation with membership open to
all companies and organizations interested in applying and advancing the state-of-the-art in
Table of Contents

supply-chain management systems and practices. The SCOR-model captures the Council’s
consensus view of supply chain management. While much of the underlying content of the
Model has been used by practitioners for many years, the SCOR-model provides a unique
framework that links business process, metrics, best practices and technology features into a
unified structure to support communication among supply chain partners and to improve the
effectiveness of supply chain management and related supply chain improvement activities.

Member companies pay a modest annual fee to support Council activities. All who use the
SCOR-model are asked to acknowledge the SCC in all documents describing or depicting the
SCOR-model and its use. The complete SCOR-model and other rleated models of the SCC
are accessable through the members’ section of the www.supply-chain.org website. SCC
members further model development by participating in project development teams- SCOR
Further information regarding and other related SCC Models are collaborative ongoing projects that seek to represent
membership, the Council and current supply chain and related practice.
SCORcan be found at
the Council’s web site:
www.supply-chain.org. © Copyright 2008 Supply-Chain Council

SCOR Overview
What Is a
Process Reference Model?
Section Process reference models integrate the well-known concepts of business process reengi-
ONE neering, benchmarking, and process measurement into a cross-functional framework.

Business
Process Best Practices Process
Reengineering Benchmarking Analysis Reference Model

Capture the “as-is” Capture the “as-is” state of a


state of a process process and derive the desired
and derive the “to-be” future state
desired “to-be”
future state
Quantify the
operational
performance of
similar companies Quantify the operational
and establish performance of similar companies
internal targets and establish internal targets based
based on on “best-in-class” results
“best-in-class”
results

Characterize the
management
practices and
software solutions Characterize the
that result in management practices
“best-in-class” and software solutions
performance that result in “best-in-class”
performance

SCOR Overview 1
A Process Reference Model 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
• Standard alignment to features and functionality

Once a Complex Management


Process is Captured in Standard Process
Reference Model Form, It can Be:
• Implemented purposefully to achieve competitive advantage
• Described unambiguously and communicated
• Measured, managed, and controlled
• Tuned and re-tuned to a specific purpose

A Process Reference Model Becomes


a Powerful Tool in the Hands
of Management

2 SCOR Overview
Model
Scope and Structure
Section The Boundaries of Any Model Must Be Carefully Defined
TWO “From your supplier’s supplier to your customer’s customer”

SCOR spans:
• All customer interactions, from order entry through paid invoice
• All product (physical material and service) transactions, from your supplier’s supplier to your
customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
• All market interactions, from the understanding of aggregate demand to the fulfillment of each
order

Plan

Plan Plan

Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source

Return Return Return Return Return Return


Return Return
Suppliers’ Supplier Customer Customer’s
Supplier Your Company Customer
Internal or External Internal or External

SCOR does not attempt to describe every business process or activity, including:
• Sales and marketing (demand generation)
• Research and technology development
• Product development
• Some elements of post-delivery customer support
Links can be made to processes not included within the model’s scope, such as product development, and
some are noted in SCOR.

SCOR assumes but does not explicitly address:


• Training
• Quality
• Information Technology (IT)
• Administration (non SCM)

SCOR Overview 3
Scope of SCOR Processes
SCOR is Based on Five Distinct Management Processes

Demand/Supply Planning and Management


Balance resources with requirements and establish/communicate plans for the whole supply
Plan chain, including Return, and the execution processes of Source, Make, and Deliver.
Management of business rules, supply chain performance, data collection, inventory, capital
assets, transportation, planning configuration, regulatory requirements and compliance, and sup-
ply chain risk.
Align the supply chain unit plan with the financial plan.

Sourcing Stocked, Make-to-Order, and Engineer-to-Order Product


Schedule deliveries; receive, verify, and transfer product; and authorize supplier payments.

Source Identify and select supply sources when not predetermined, as for engineer-to-order product.
Manage business rules, assess supplier performance, and maintain data.
Manage inventory, capital assets, incoming product, supplier network, import/export
requirements, supplier agreements, and supply chain source risk.

Make-to-Stock, Make-to-Order, and


Engineer-to-Order Production Execution
Make Schedule production activities, issue product, produce and test, package, stage product, and
release product to deliver. With the addition of Green to SCOR, there are now processes specifi-
cally for Waste Disposal in MAKE.
Finalize engineering for engineer-to-order product.
Manage rules, performance, data, in-process products (WIP), equipment and facilities, transporta-
tion, production network, regulatory compliance for production, and supply chain make risk.

4 SCOR Overview
Order, Warehouse, Transportation, and Installation Management
for Stocked, Make-to-Order, and Engineer-to-Order Product
Deliver All order management steps from processing customer inquiries and quotes to routing
shipments and selecting carriers.
Warehouse management from receiving and picking product to load and ship product.
Receive and verify product at customer site and install, if necessary.
Invoicing customer.
Manage Deliver business rules, performance, information, finished product inventories, capital
assets, transportation, product life cycle, import/export requirements, and supply chain deliver
risk.

Return of Raw Materials and Receipt of Returns of Finished Goods


All Return Defective Product steps from source – identify product condition, disposition product,
Return request product return authorization, schedule product shipment, and return defective product –
and deliver – authorized product return, schedule return receipt, receive product, and transfer
defective product.
All Return Maintenance, Repair, and Overhaul product steps from source – identify product
condition, disposition product, request product return authorization, schedule product shipment,
and return MRO product – and deliver – authorize product return, schedule return receipt, receive
product, and transfer MRO product.
All Return Excess Product steps from source – identify product condition, disposition product,
request product return authorization, schedule product shipment, and return excess product –
and deliver – authorize product return, schedule return receipt, receive product, and transfer
excess product.
Manage Return business rules, performance, data collection, return inventory, capital assets,
transportation, network configuration, regulatory requirements and compliance, and supply chain
return risk.

SCOR Overview 5
A Process Reference Model
Differs from Classic Process
Decomposition Models
Process decomposition models are developed
to address one specific configuration of process elements

Level Contains: Provide a balanced


horizontal (cross-process)
1 Process Type
and vertical (hierarchical)
Process Category view

Process Category Designed to be


2 (re)configurable
Process Element

Process Element
3 Used to represent many
Activities different configurations of
a similar process

Activities
4
Aggregate a series of
hierarchical process
models

6 SCOR Overview
SCOR Contains
Three Levels of Process Detail
Level

# Description Schematic Comments

Plan Level 1 defines the scope and content


1 Top Level for the Supply Chain Operations
(Process Types) Source Make Deliver Reference-model. Here basis of
competition performance
Return Return targets are set.
Supply-Chain Operations Reference-model

A company’s supply chain can be


2 Configuration “configured-to-order” at Level 2 from
Level (Process core “process categories.” Companies
Categories) implement their operations strategy
through the configuration they choose
for their supply chain.

3 Process Element Level 3 defines a company’s ability to


Level compete successfully in its chosen
(Decompose markets, and consists of:
Processes)
• Process element definitions
• Process element information
P1.1 inputs, and outputs
Identify, Prioritize, and
Aggregate Supply-Chain
Requirements P1.3 P1.4 • Process performance metrics
Balance Supply-Chain
Resources with Supply-
Establish and
Communicate attributes and defintions
P1.2 Chain Requirements Supply-Chain Plans
Identify, Assess, and • Best practices definitions
Aggregate Supply-Chain
Resources
Companies “fine tune” their Operations
Strategy at Level 3.

Companies implement supply-chain


4 Implementation management practices that are unique
Not Level to their organizations at this level. Level
in (Decompose 4 and lower defines specific practices to
Scope Process achieve competitive advantage and to
Elements) adapt to changing business conditions.

SCOR Overview 7
Process Categories
Defined by the Relationship Between a SCOR Process and a Process Type

“SCOR Configuration Toolkit”

SCOR Process
Plan Source Make Deliver Return

Planning P1 P2 P3 P4 P5
Process S1 - S3 M1 - M3 D1 - D4 S/DR1 - Process
Type Execution
S/DR3 Category
Enable EP ES EM ED ER

Practitioners select appropriate process categories from the SCOR configuration toolkit to represent their
supply-chain configuration(s).

Level 1 Process Definitions


SCOR Is Based on Five Core Management Processes

SCOR Process Definitions


Processes that balance aggregate demand and supply to develop a course of
Plan action which best meets sourcing, production and delivery requirements
Processes that procure goods and services to meet planned or
Source actual demand
Processes that transform product to a finished state to meet planned or
Make actual demand
Processes that provide finished goods and services to meet planned or actual
Deliver demand, typically including order management, transportation management, and
distribution management

Return Processes associated with returning or receiving returned products for any reason.
These processes extend into post-delivery customer support

8 SCOR Overview
At Level 2, Each Process Can Be Further Described by Type
SCOR Process Type Characteristics
Planning A process that aligns expected resources to meet expected demand requirements.
Planning processes:
• Balance aggregated demand and supply • Consider consistent planning horizon
• (Generally) occur at regular, periodic intervals • Can contribute to supply-chain
response time

Execution A process triggered by planned or actual demand that changes the state of material goods.
Execution processes:
• Generally involve - • Can contribute to the order fulfillment cycle time
1. Scheduling/sequencing
2. Transforming product, and/or
3. Moving product to the next process

A process that prepares, maintains, or manages information orrelationships on which planning


Enable and execution processes rely

Each Execution Process has three different possible capabilities of representing and responding to customer orders.
Different supply chain strategy supports corresponding product or service types. These categories also affect PLAN
and RETURN processes.

Stocked Product (S1, M1, D1)


• Inventory Driven (Plan)
• Standard Material Orders
• High Fill-rate, short turnaround
Example: A retail air conditioner which is pulled off the shelf, and restocked based on SKU.

Make-to-Order (S2, M2, D2)


• Customer Order Driven
• Configurable Materials
• Longer turn-around times
Example: A car is built with a particular combination of colors and features and ordered from a distributor.

Engineer-to-Order (S3, M3, D3, D4)


• Customer Requirements Driven
• Sourcing New Materials
• Longest long lead-times, low fill rates
Example: An architect and engineer creates a new kitchen for you, with some custom-build and
custom-sourced materials.

SCOR Overview 9
SCOR Version 9.0 Level 2

Plan
P1 Plan Supply Chain

P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Return

Customers
Suppliers

Source Make Deliver


S1 Source Stocked M1 Make-to-Stock D1 Deliver Stocked
Product Product

S2 Source Make- M2 Make-to-Order D2 Deliver Made-to-Order


to-Order Product Product

M3 Engineer-to-Order D3 Deliver Engineered-


S3 Source Engineer- to-Order Product
to-Order Product

D4 Deliver Retail
Product

Source Return Deliver Return


SR1 Return Defective DR1 Return Defective
Product Product
SR2 Return MRO Product DR2 Return MRO Product
SR3 Return Excess Product DR3 Return Excess Product

Enable Plan Source Make Deliver Return


1) Establish and Manage Rules
2) Assess Performance
3) Manage Data
4) Manage Inventory
5) Manage Capital Assets
6) Manage Trabsportation
Align SC/Financials Supplier Agreements
7) Manage Supply Chain Configuration
8) Manage Regulatory Compliance
9) Manage Supply Chain RiskProcess
10) Specific Elements

10 SCOR Overview
SCOR Level 3 Process flow
Inputs and outputs
Presents Detailed Process Element Information for Source of inputs
Each Level 2 Process Category Output destination

S1 Source Stocked Product


S1.2 Detail
Supplier

From DR1.4: Transfer Defective Product


in DR1 Deliver Return Defective

From DR2.4: Transfer MRO Product in


DR2 Deliver Return MRO Product
Product
Defective Products

From DR3.4: Transfer Excess Product


MRO Products

in DR3 Deliver Return Excess Product


Excess Products

Scheduled Receipt Receipt Transferred


S1.1 Schedule Receipts Verification S1.3 Verify Verification S1.4 Transfer Product S1.5 Authorize
S1.2 Receive Product
Product Deliveries Product Product Supplier Payment
Receipt verification
Receipt verification

SCOR Model Structure


Receipt verification

A set of standard notation is used throughout the


Model. P depicts Plan elements, S depicts Source
Receipt verification

elements, M depicts Make elements, D depicts


Deliver elements, and R depicts Return elements.
SR = Source Return and DR = Deliver Return. An E
Receipt verification

preceding any of the others (e.g., EP) indicates that


To ES.2: Assess Supplier the process element is an Enable element associat-
Performance in ES ed with the Planning or Execution element (in this
Enable Source case, EP would be an Enable Plan element). Every
Level 1 Process has Enable Processes associated
To ES.1: Manage Sourcing with it.
Business Rules in ES Enable As indicated in the chart showing the Three
Levels of Process Detail, the Model is hierarchical
To ES.6: Manage Incoming Product
with three levels. Here is a sample of the detailed
in ES Enable Source
workflow for S1.2. S1.2 is a notation that indicates
To ES.8: Manage Import/Export a third level process element. In this case, it is a
Requirements in ES Enable Source Source (S = Level 1 Source) element that is con-
cerned with sourcing stocked product (S1 = Level
To ED.8: Manage Import/Export 2 Source Stocked Product) and is specific to receiv-
Requirements in ED Enable Deliver ing product (S1.2 = Level 3 Source Stocked Product
Receive Product). Though the other S1 processes
are shown here to Level 2, the Level 3 detail is only
included for S1.2.

SCOR Overview 11
Examples
SCOR Level 3 Standard Process Element Definition, Performance Process Table

S1.1
Schedule Product Deliveries
Scheduling and managing the execution of the individual deliveries of product against an
existing contract or purchase order. The requirements for product releases are determined
based on the detailed sourcing plan or other types of product pull signals.

Performance Attributes Metric


Supply Chain Reliability % Schedules Changed within Supplier’s Lead Time
Supply Chain Responsiveness Average Release Cycle of Changes,
Average Days per Engineering Change,
Schedule Product Deliveries Cycle Time,
Average Days per Schedule Change
Supply Chain Agility None Identified
Supply Chain Costs Cost to Schedule Product Deliveries,
Quantity per shipment
Supply Chain Asset Management None Identified
Best Practices Description/Definition
Bundle deliveries Bundle deliveries of different products into single shipment
when possible
Infrequent product delivery Minimize need for frequent shipments by accurately
determining product needs
Mechanical (Kanban) Pull Signals Electronic Kanban support
Are Used to Notify Suppliers of the
Need to Deliver Product
Supplier managed inventories with VMI agreements allow suppliers to manage (replenish)
scheduling interfaces to external inventory
supplier systems
Utilize EDI Transactions to Reduce EDI interface for 830, 850, 856 & 862 transactions
Cycle Time and Costs
Advanced Ship Notices Allow for Blanket order support with scheduling interfaces to external
Tight Synchronization between supplier systems
Source and Make Processes
Consignment Agreements Are Used Consignment inventory management
to Reduce Assets and Cycle Time
While Increasing the Availability of
Critical Items

12 SCOR Overview
Implementation of Supply-Chain
Management Practices within the
Company Occurs at Level 4 (and below)

D1.7
Select Carriers
D1.6
Route
D1.5
Build
D1.4
Reserve Inventory
D1.3
Consolidate
D1.2
Receive, Enter &
D1.1
Process Inquiry &
D1
& Rate
Shipments
Shipments Loads & Determine
Delivery Date
Orders Validate Order Quote
Deliver
Stocked Product

D1.8 D1.9 D1.10 D1.11 D1.12 D1.13 D1.14 D1.15


From Receive Product Pick Pack Load Product & Ship Install Receive & Verify Invoice
Source from Source or Product Product Generate Shipping Product Product Product by
or Make Make Docs Customer

Process Element - D1.2 Tasks


Receive Enter Check Validate
Order Order Credit Price
Level 4

Task - D1.2.3
Access Credit Check Credit Clear Order
Screen Availability Activities
Communicate
Contact Results to
Level 5 Accounting Customer

Below Level 3, each


1. Contact customer account rep. process element is
2. Look up customer history described by classic
3. If necessary, account rep. calls
sales manager to authorize hierarchical process
Level 6 additional credit
decomposition
4a. Account rep. clears credit issue
4b. Account rep. refuses credit request

SCOR Overview 13
Performance Attributes and Level 1 Strategic Metrics
Level 1 Strategic Metrics are primary, high level measures that may cross multiple SCOR processes.
Level 1 Metrics do not necessarily relate to a SCOR Level 1 process (PLAN, SOURCE, MAKE,
DELIVER, RETURN).

Performance Attributes
Customer-Facing Internal-Facing
Level 1 Metrics Reliabilty Responsiveness Agility Cost Assets
Perfect Order Fulfillment (RL.1.1) ✓
Order Fulfillment Cycle Time (RS.1.1) ✓
Upside Supply Chain Flexibility (AG.1.1) ✓
Upside Supply Chain Adaptability (AG.1.2) ✓
Downside Supply Chain Adaptability (AG.1.3) ✓
Supply Chain Management Cost (CO.1.1) ✓
Cost of Goods Sold (CO.1.2) ✓
Cash-to-Cash Cycle Time (AM.1.1) ✓
Return on Supply Chain Fixed Assets (AM.1.2) ✓
Return on Working Capital (AM.1.2) ✓
The Metrics are used in conjunction with Performance cost provider against an organization that chooses to com-
Attributes. The Level 1 Strategic Metrics are the calculations pete on reliability and performance.
by which an implementing organization can measure how In SCOR 9.0 metrics coding is introduced. This will sim-
successful they are in achieving their desired positioning plify identification, eliminate confusion for similar-sounding
within the competitive market space. Many metrics in the metrics and is particularly beneficial for benchmarking as it
Model are hierarchical – just as the process elements are is based on the Performance Attributes of the metrics.
hierarchical. Level 1 Metrics are created from lower level The format of the metric ID or number is XX.y.z, where:
calculations and are primary, high level measures that may XX = Performance Attribute. The possible values for XX are:
cross multiple SCOR processes. Lower level calculations • RL = Reliability, _
(Level 2 and 3 metrics) are generally associated with a nar- • RS = Responsiveness, _
rower subset of processes. Level 2 and 3 metrics associated • AG = Agility, _
with Level 1 metrics are included in the 9.0 Metrics • CO= Cost, and _
Hierarchy in the Metrics Chapter. Additional metrics that do • AM = Asset Management. _
not “roll up” to Level 1 are needed as diagnostics (used to y = Level of the metric
diagnose variations in performance against plan) and are z = a unique number
included in the Metrics Chapter with definitions and process
locations listed. Examples: The metric ID for Perfect Order Fulfillment is
SCOR metrics are used in conjunction with Performance RL.1.1. From this you can derive that Perfect Order
Attributes. The Performance Attributes are characteristics of Fulfillment is a strategic (Level 1) Reliability metric. An
the supply chain that permit it to be analyzed and evaluat- example of a level 2 (diagnostic metric) is RL.2.4: Perfect
ed against other supply chains with competing strategies. Condition. Level 3 diagnostic metrics are coded the
Just as you would describe a physical object like a piece of same way; the unique number has been assigned based
lumber using standard characteristics (e.g., height, width, on the alphabetical listing. Future metric additions will
depth), a supply chain requires standard characteristics to be simply receive an incremental number. An example of a
described. Without these characteristics it is extremely diffi- level 3 diagnostic metric is CO.3.141 (Direct Material
cult to compare an organization that chooses to be the low- Cost).

14 SCOR Overview
Section
Applying
THREE the SCOR Model
The Concept of “Configurability”
A supply-chain configuration is driven by:
Plan levels of aggregation and information sources
Source locations and products
Make production sites and methods
Deliver channels, inventory deployment and products
Return locations and methods
SCOR must accurately reflect how a supply-chain’s configuration impacts management process-
es and practices.

Each Basic Supply-Chain is a “Chain” of


Source, Make, and Deliver Execution Processes
Configurability
Plan Plan Plan Plan

Source Make Deliver

Customer and Supplier Customer and Supplier Customer and Supplier

Each intersection of two execution processes (Source-Make-Deliver) is a “link” in


the supply chain
Execution processes transform or transport materials and/or products
Each process is a customer of the previous process and a supplier to the next

Planning processes manage these customer-supplier links


Planning processes thus “balance” the supply chain
Every link “requires” an occurrence of a plan process category

SCOR Overview 15
Modeling with SCOR
Drivers for modeling: Why model?
Business opportunities:
• Strategy Development
• Merger, Acquisition or Divestiture (Companies or Supply Chains)
• Process optimization and Re-engineering
• Standardization, Streamlining and Management alignment
• New business start-up (Company and Supply Chain start-ups)
• Benchmarking
• Process Outsourcing

Technology services:
• Software implementation (ERP, PLM, QC)
• Workflow & Service Oriented Architecture

SCOR recognizes different types of models. Each serves a


different purpose:
• Business Scope diagram: Set the scope for a project or organization
• Geographic Map (a.k.a.Geo Map): Describes material flows in a geographic context; Highlights node*
complexity or redundancy
• Thread Diagram: Material flow diagram, focused on level 2 process connectivity; Describes high level
process complexity or redundancy
• Workflow or Process Models: Information, material and work flow diagram at level 3 (or beyond);
Highlights information, people and system interaction issues

* A node represents a logical or geographic entity in a supply chain.


Examples: Warehouse, Factory, Store

16 SCOR Overview
Steps to Create a Business Scope Diagram
1. Create or open the business scope diagram template
2. Identify customers of your organization or project and enter these in the customers column in the
scope diagram.
3. Identify and enter the key nodes within your organization or project. A node represents a logical
or geographic entity in the supply chain. Consider: Warehouse, Factory, Store, HQ etc.
4. Identify and enter the suppliers of your organization or project
5. Optionally link the nodes to reflect material and/or information flows. Use a different color
and/or stroke differentiate material and information flows.

Example:

Suppliers mp3, Inc. Customers

Flash, Inc. mp3 HQ

Battery Ltd. Factory Retail, Inc.

Components
Warehouse

Service Providers

Material and information flow


Information flow

SCOR Overview 17
Steps to Create a Geographic Map:
1. Create geographic context (a.k.a. the map)
2. Draw and name your customers on the map
a. Identify the level 2 processes
b. List the level 2 processes in the customer on your map
3. Beginning with your customers, repeat this for every node on the map:
a. Identify all supplying nodes (where does material come from)
b. Draw and name these supplying nodes on the map
c. Identify the level 2 processes
d. list these in the node on your map
e. Draw the material flows (arrows connecting the nodes)
4. Repeat until you have included all your suppliers/nodes

Example:

HQ Retail, Inc
P1, P2, S1, P2 Drive
D2, S2 Battery Supplier
Supplier D1, P1, P4
D1, P1, P4

MP3 Factory
P3, S1,
M1, D1

18 SCOR Overview
Steps to Create a SCOR Thread Diagram:
1. Create or open the thread diagram template
2. Repeat these steps for every relevant node on the geographic map:
a. Determine the class of the node (Customer, Supplier, etc) and create a column (node) in the
appropriate class
b. Create process representations for each process listed in the column for this node (D2, M2,
S1, etc)
c. Create process representations for each process listed in the column for this node (D2, M2,
S1, etc)
d. Link the processes to the previous node’s processes (partially using the material flow
information from the Geographic Map)
3. Repeat until all relevant nodes have been created
4. Optionally add information flows (using different color/stroke)

Example:

P1

P4 P3 P2
P2

S2

P4 S1 M1 D1 S1

D1 S1 D1

Battery Drive mp3 Inc mp3 Inc mp3 Inc Retail, Inc
Supplier Supplier HQ Factory Warehouse

Suppliers mp3 Incorporated Customers

SCOR Overview 19
Steps to Establish SCOR Process Models (Workflows)
1. Obtain generic descriptions (this is what people describe)
2. Map these generic descriptions to SCOR process IDs (normalize)
3. Create swimming lanes to reflect organizational boundaries
4. Create workflow with these SCOR processes
5. Add description to workflows to reflect inputs/outputs of the processes
6. Optionally add other relevant information

Example:

Retail, Inc.
(Amsterdam)
S1.1
Schedule
Prod.
Deliveries

Customer P.O. Delivery Commit

mp3
HQ D2.2 C.O. D2.3 C.O. S2.1
(Cupertino) Receive, Reserve Inv. Schedule
Enter, Validate Calculate Prod.
Order Date Deliveries

Inter-Company P.O.

mp3
Factory
(Shenzhen) D1.2 D1.3
Receive, Reserve Inv.
Enter, Validate Calculate
Order Date

C.O. = Customer Order, Inv. = Inventory, P.O. = Purchase Order, Prod. = Product

20 SCOR Overview
Next steps to learn
Attend Supply-Chain Council Trainings Scheduled Globally.
VISIT www.supply-chain.org to find the latest training schedule.

SCOR Overview 21
Notes

22 SCOR Overview
Notes

SCOR Overview 23
Notes

24 SCOR Overview
Notes

SCOR Overview 25
For more information:
In USA:
Supply Chain Council
1400 Eye Street, Suite 1050
Washington DC, 20005
Tel: +1 202-822-4660
Fax: +1 202-822-5286
Email: info@supply-chain.org

In Europe:
Supply Chain Council
287 Avenue Louise
2nd Floor
BE - 1050 Brussels
Tel: +32 2 627 0160
Fax: +32 2 645 2671
Email: Europe@supply-chain.org

www.supply-chain.org
Dedicated to
improving supply chain processes
and their effectiveness
About the Our SCOR® process reference model is the supply chain
world’s most widely accepted framework for evaluating and
comparing supply chain activities and their performance. The
Supply Chain Council Model is organized around the five primary management
processes of Plan, Source, Make, Deliver and Return. It can be
The Supply Chain Council (SCC) used to describe supply chains that are very simple or very
complex using a common set of definitions and enabling a
is a global non-profit association common understanding.

whose methodology, diagnostic


Source: SCOR Model, Supply-Chain Council Plan
and benchmarking tools help Plan Plan

member organizations make Deliv e r Source Make Deliver Source Make Deliver Source
Source Make Deliver
Return Return Return Return Return Return

dramatic and rapid improvements Supplier’s


Supplier Return Return Customer
Customer’s
Supplier Customer
I nte rna l o r Ex te rna l Your Company I nte rna l o r Ex te rna l

in supply chain processes.


SCC’s tools and resources help members accelerate and increase
supply chain performance improvement. For instance,
members use SCOR to:
• Determine what processes to improve and by how much to
improve them;
• Guide the consolidation of internal supply chains (which results
in significant cost reductions from eliminating duplicative assets);
• Create standard processes and common information systems
With the help of its volunteer members, across business units (which generates major cost savings, cycle-
time and quality improvements); and,
SCC continually advances its tools and • Develop a common scorecard by which customers can
measure their performance and by which SCC members can
provides education on how to capitalize measure suppliers’ performance (which can lead to major cross-
organizational process improvements).
on those tools for supply chain excellence.

2 About the Supply Chain Council


Benefits of Supply Chain Council
Membership

The Supply Chain Council offers resources, capability development


and knowledge networks to accelerate an organization’s use of—and
benefits from—SCOR and related models.

Resources
• SCOR—A supply chain process reference model Resources
containing over 200 process elements, 550 metrics, and
500 best practices including risk and environmental
management
Capability
• Related Frameworks—Additional process reference
Development
models such as CCOR (customer chain) and DCOR (design
chain)
• SCORmark Benchmarking—Benchmarking of supply
chain performance against industry peers
• Research—Ongoing research on supply chain processes, Knowledge
practices, metrics and skills both globally and by industry Networks
and geographic region
• Tools—Templates, website, software and methods
developed and contributed by volunteer SCC working
groups as well as academics and third party providers Knowledge Networks
• Publications—Case studies, articles, conference • Chapters—Chapter meetings, networks and materials in
proceedings and newsletters local languages discussing supply chain issues of greatest
regional interest
• Expert Network—Access to staff, trainers and advisors to
coach individuals and teams in use of SCOR • Events—Frequent webinars, and annual regional
conferences such as Supply-Chain World
• Forums—Virtual and in-person discussion forums for
Capability Development networking and problem-solving among communities
• Training—Public and in-house training courses on the of common interest (such as industry special interest
SCOR framework, its implementation, CCOR and DCOR groups)
models and more
• Certification—Individual professional certification on
understanding of, and ability to use, the SCOR model
• Volunteering—Participation on committees and
working groups to develop new models, tools and
practices in supply chain management
• Career Development—Skills identification, career path
identification, online job postings of positions requiring
SCOR knowledge, and in-person member networking
opportunities
Benefits of Supply Chain Council Membership 3
Supply Chain Council
Benefits Evolve with Member Needs

Many organizations evolve in their The Supply Chain Council supports members from their initial
learning phase to their advanced tool applications by providing
use of SCOR and other SCC models
the specific resources, capability development and knowledge
over time—from initially just trying to networks members’ need—when they need them—along their
understand the SCOR model to using journey to supply chain excellence.
it as an integral part of a convergence
For instance, members learning about SCOR may want the SCOR
of tools for process improvement model documentation, training on the basic SCOR Framework,
organization-wide. We call this research and case studies demonstrating the financial value of
SCOR implementation, and networking with other companies that
evolution the SCOR lifecycle. have had success using SCOR.

Organizations piloting a first SCOR project may require training


Learning
on SCOR Implementation, access to templates for various aspects
of the project, and networking with trainers and advisors to coach
them through the pilot.

Members deploying SCOR more widely in the organization require


multiple resources and teams knowledgeable about SCOR. These
groups may take advantage of SCC team development training,
Piloting skills assessments, individual certification, benchmarking to help
prioritize improvement projects and networking with peers equally
established in their ongoing use of SCOR.

Members integrating SCOR as one of several tools for process


improvement may be most interested in attending the annual
Deploying Convergence event, reading case studies of how others have
integrated SCOR with Six Sigma, Lean and other tools, or joining the
Convergence work group to develop best practices and network
with peers on these issues.
Integrating
As organizations become fully mature in their use of and benefit
from SCOR for supply chain improvement, SCC offers similar
models for the customer chain (CCOR) and design chain (DCOR) as
well as training, case studies, advisors, networks and resources for
using SCOR in other parts of the organization such as IT or human
resources. In this way, members renewing and expanding their
Renewing commitment to the use of reference models continue to benefit
from SCC membership.

4 Supply Chain Council Benefits Evolve with Member Needs


Our Members SCC Membership Categories
End User/Practitioner Membership
SCC’s membership is comprised of companies representing
Organizations in this membership category
a broad cross-section of industries including manufacturers,
include product and services companies.
distributors, retailers and services. Equally important to the
Council are the technology solution providers, business
Typically individuals representing end user/
consultants, academic institutions and government
practitioner members will hold titles related
organizations that participate in Council activities. SCC is truly
to operations, logistics, sourcing, distribution,
a global association in which members benefit from and
customer service, supply chain management and
contribute to the evolution of supply chain standards and best
the like.
practices. The Council has Chapters in Australia, Greater China,
Europe, Japan, Latin America, North America, South Africa, and
South East Asia. Enabling Technology Company/
Software Vendor Membership
Membership is open to all types of organizations interested in Organizations in the membership category offer
improving processes. All employees in a member company software and technologies that enable best
have access to the Council’s resources and benefits. practices in supply chain management processes.

Member Locations Consultant/Analyst Membership


This category applies to organizations that
offer consulting and research services in any of
SOUTH AUSTRALIA the fundamental supply chain management
EAST ASIA / NZ
REST OF AFRICA LATIN processes and/or related enabling technologies.
WORLD AMERICA
CHINA Non-Profit Membership
These members include accredited colleges,
universities, associations, government agencies,
and other non-profit institutions.

Visit www.supply-chain.org or contact the


Council headquarters (info@supply-chain.org)
to learn more and to become a member of
the Supply Chain Council.
NORTH
EUROPE
AMERICA
JAPAN

Also developing chapters in India and the Middle East

Our Members 5
World Headquarters Latin America Headquarters European Headquarters
1331 H Street NW | Suite 500 Alameda Araguaia 287 Avenue Louise
Washington, DC 20005 933 cj. 84 Alphaville Barueri BE-1050 Brussels
United States of America CEP: 06455-000 SP Belgium
Phone: + 1 202 962 0440 Brasil Phone: + 32 2 627 01 60
Phone: +55 11 8447 1381

Southern Africa Headquarters Japan Headquarters Southeast Asia Headquarters


Langham House, 59 Long Street 133 New Bridge Road
Cape Town 8001 434-0038 #10-03 Chinatown Point
South Africa Phone: 053-584-0133 Singapore 059413
Phone: +27 72 33 55 282 Phone: (65) 6533-3669

Greater China Headquarters Australia New Zealand


Room 3517 35/F Headquarters
Citic Square Level 21, Darling Park, Tower 2
1168 Nanjing Road West 201 Sussex Street
Shanghai 200041 Sydney NSW 2000, Australia
Phone: +86 21 5111 9020

Email: info@Supply-Chain.org www.Supply-Chain.org

©SCOR® is a registered trademark in the United States and Europe.


Supply Chain Council 2008.

You might also like