- February 14, 2018
- Posted by: admin
- Category: IBP
The Supply Chain Operations Reference(SCOR) model was developed by the management consulting firm PRTM and AMR Research. SCOR is endorsed by the Supply Chain Council (www.supply-chain.org). It is the cross industry de-facto standard diagnostic tool for supply chain management.
SCOR enables users to address, improve, and communicate supply chain practices. It works within and between all interested parties in an extended enterprise. SCOR is a management tool, spanning from customer to supplier.
The Supply-Chain Operations Reference-model (SCOR) has been developed by the Supply-Chain
Council to describe the business activities associated with all phases of satisfying a customer’s demand. The model itself contains several sections and is organized around the five primary management processes.
PLAN, SOURCE, MAKE, DELIVER, and RETURN.
By describing supply chains using these process building blocks, the Model can be used to describe supply chains that are very simple or very complex using a common set of definitions. As a result, disparate industries can be linked to describe the depth and breadth of virtually any supply chain.
The Model has been able to successfully describe and provide a basis for supply chain improvement for global projects as well as site-specific projects
At the highest level (Level 1) the measurements are stratified into four diagnostic elements:
Reliability
• Delivery performance
• Order fulfilment performance
• Perfect order fulfilment
Flexibility & Responsiveness
• Supply chain response time
• Production flexibility
Cost
• Total Supply Chain Management cost
• Valued-added productivity
• Warranty cost or returns processing cost
Assets
• Cash to cash cycle time
• Inventory days of supply
At the process category level (Level 2) the measurements are stratified into four diagnostic elements for each specific PLAN, SOURCE, MAKE and DELIVER process as shown in below figure.
Defining overall supply chain strategies and goals on the basis of key performance indicators defined in the SCOR model with a Balanced Scorecard can allow companies to easily measure supply chain activities. The SCOR/Balanced Scorecard combination can enable organizations to evaluate supply chain improvement opportunities and set new performance targets.
Business system solutions enable the five steps to supply chain performance results:
1. Establishing measurable supply chain objectives by process
2. Measure current supply chain performance
3. Identify problem supply chain performance areas
4. Develop supply chain initiatives with resources and responsibilities for solving the performance areas
5. Measure supply chain performance on a regular basis, looping back to step three.