Supply chain operations reference
[1] The SCOR model describes the business activities associated with satisfying a customer's demand, which include plan, source, make, deliver, return, and enable.
This reference model enables users to address, improve, and communicate supply chain management practices within and between all interested parties in the extended enterprise.
[7] SCOR DS puts greater emphasis on collaboration, visibility and the effects of market drivers.
As a result, disparate industries can be linked to describe the depth and breadth of virtually any supply chain.
SCOR model 12.0 was based on six distinct management processes: Plan, Source, Make, Deliver, Return, and Enable.
Other key assumptions addressed by SCOR include training, quality, information technology, and administration (not supply chain management).
Beyond level 3, companies decompose process elements and start implementing specific supply chain management practices.
It is at this stage that companies define practices to achieve a competitive advantage, and adapt to changing business conditions.
SCOR is a process reference model designed for effective communication among supply chain partners.
It also can be used as a data input to completing an analysis of configuration alternatives (e.g., Level 2) such as: Make-to-Stock or Make-To-Order.
SCOR is used to describe, measure, and evaluate supply chains in support of strategic planning and continuous improvement.
These Level 1 metrics are the calculations by which an implementing organization can measure how successful they are in achieving their desired positioning within the competitive market space.
For example, Delivery Performance is calculated as the total number of products delivered on time and in full based on a commit date.
[12] The SCOR model defines a best practice as a current, structured, proven and repeatable method for making a positive impact on desired operational results.
[13] The practice shows operational improvement related to the stated goal and could be linked to key metric(s).
The impact should show either as gain (increase in speed, revenues, quality) or reduction (resource utilizations, costs, loss, returns, etc.).
The picture alone cannot adequately describe what production strategy the manufacturing company has decided to adopt.
In order to keep the example simple and direct, it focuses only on the central processes: Source, Make, and Deliver.
The diagram explains that the company supplies raw materials in bulk from the Far East against a monthly forecast.
The picture from the SCOR manual shows that the process S1 “Source Stocked Product” exactly corresponds to the needs of this example.
By just reading the SCOR syntax we immediately capture the salient processes that occur in this chain.
As a matter of fact, if we were to use the “orthodox” representation of a SCOR mapping, we would build a thread diagram like the one in the below picture.
This is perfectly correspondent to the initial geographical picture, but it contains much more embedded information (we can call it a meta-model) in a more structured and elegant way.
Companies usually integrate SCOR into their existing practices, which helps them reach their business goals and optimize their activities.
