Supply-Chain Operations Reference-model (SCOR) Overview
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Supply-Chain OperationsReference-model (SCOR)
Overview
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Quantify theoperationalperformance of similar companiesand establishinternal targetsbased on “best-in-
class” results
Quantify theoperationalperformance of similar companiesand establishinternal targetsbased on “best-in-
class” results
Benchmarking
Characterize themanagementpractices andsoftware solutionsthat result in “best-in-class”performance
Characterize themanagementpractices andsoftware solutionsthat result in “best-in-class”performance
Best PracticesAnalysis
Process ReferenceModel
Capture the “as-is”state of a processand derive thedesired “to-be”future state
Capture the “as-is”state of a processand derive thedesired “to-be”future state
Business ProcessReengineering
Capture the “as-is” state of
a process and derive thedesired “to-be” future state
Quantify the operationalperformance of similar companies and establishinternal targets based on“best-in-class” results
Characterize themanagement practicesand software solutionsthat result in “best-in-class” performance
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-functional framework
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The Value Chain
Mother
Earth
OriginalEquipment
Manufacturers
(OEM)
ExtractorsMiners
Harvesters
Converters
(suppliers)
Distributors
End Customer (the source
of funds)
The Supply Chain The Distribution Chain
Figure 1-2Figure 1-2
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Supply Networks
DistributorsMother
Earth
Extractors Converters Converters OEMs Customers
Figure 1-3Figure 1-3
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SCOR Boundaries
SCOR Spans:
All supplier / customer interactions
Order entry through paid invoice
All physical material 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 thefulfillment of each order
Returns
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Scope of SCOR processesScope of SCOR processes
Demand/supply planning
Assess supply resources, aggregate andprioritize demand requirements, planinventory, distribution requirements,production, material, and rough-cut
capacity for all products and all channels
Make/buy decisions, supply chainconfiguration, long-term capacity andresource planning, business planning,product phase-in/phase-out, manufacturingramp-up, end-of-life management, product-
line management Manage planning infrastructure
Plan
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Scope of SCOR processesScope of SCOR processes
Sourcing/material acquisition
Obtain, receive, inspect, hold, and
issue material
Vendor certification and feedback, sourcing quality, in
bound freight, component engineering, vendor contracts,
initiate vendor payments
Raw Materials Warehouse management
Raw Materials Transportation and installation management
Manage traffic, manage inbound freight, manage
Schedule installation activities
Source Enable Activities
Manage source business rules, manage RM
inventories
Source
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Make
Scope of SCOR processes
Production execution
Request and receive material, manufacture and
test product, package, hold and/or release
product
Engineering changes, facilities and equipment,
production status, production quality, shop
scheduling/sequencing, short-term capacity
WIP Transportation
Make Enable Activities
Manage production business rules, manage WIP
inventories
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Scope of SCOR processesScope of SCOR processes
Return Source
Activities associated with returning material to a supplier
including the communication with the trading partner, the
generation of documentation, and the physical return /
shipment of product.
Return Deliver
Activities associated with receiving and disposing of
returned material from a customer including the
communication with the trading partner, the generation of
documentation, and the physical return / receipt and
dispositioning of product.
Return
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