SCOR model

In this chapter, we describe the Supply-Chain Council (SCC) and the Supply-Chain Operations-Reference (SCOR m) model. The opening quotation explains the purpose of the reference model. 

To validate tire model and encourage its adoption, PRTM and AMR assembled a 69-company advisory group. The advisory group foimd value in the model in terms of its potential to lift supply-chain performance to a new level. The Supply-Chain Coimcil was tiren laimched to advance use of the model. Case studies later in this chapter provide examples of SCOR application. 

The model assumes that supply chains will have common characteristics, which include the following elements  

SCOR model structure. (Printed with permission of the Supply-Chain Coundl.) 

The four first-level processes contain a diverse number of activities. Table 23.1provides a flavor of their scope. Level 1 SCOR planning defines the model s scope and content. It also sets basis of competition targets for improving supply chain performance. These are translated into improvement goals. 

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Before starting an improvement process, a clear picture of the supply chain has to be obtained. Therefore, Supply Chain Analysis is a critical success factor. Usually, this analysis will describe the as-is status and the desired to-be status. As a supply chain is built up of different companies for a limited time, it is essential that all partners speak the same language to describe and measure the as-is-status as well as to evaluate the to-be-status. For this purpose, usually a widely accepted model called the SCOR-model is used. 

The SCOR-model is used to describe, measure and evaluate the configuration of a supply chain. It supports ... 

The SCOR-model is a process reference model which is defined at different process levels. Besides the definition of the process, for each level indicators are proposed to allow to assess the performance of the process. In order to improve the process, best practices for the process elements are described which are based on the experience of the council members. 

Beside the definitions, each level of the SCOR-model includes key performance indicators to measure performance and recommendations regarding best practice. 

SCOR-project is to identify, evaluate and prioritize actions using shortcut methods. SCOR-projects are usually executed by teams made up of members of different departments including customer service, sales, controlling, operations, procurement and logistics. The teams are supported by internal consultants, who provide knowledge about the SCOR-model and preside over the team meetings. 

Furthermore, the SCOR-model defines five generic performance attributes to measure performance ... 

The Supply Chain Operations Reference (SCOR ) model is a reference model for supply chain planning and operations processes as well as performance management developed by the cross-industry organization Supply Chain Council (SCC) started in 1996 (Supply Chain Council 2006 reviewed by Siirie/Wagner 2004, pp. 41-49). The SCOR model structures... 

Instead, the direct evaluation of cost drivers is in focus for optimization. Cost drivers are performance measures driving costs or profit but their immediate contribution to total costs/profit cannot be expressed explicitly.For assessing the SC performance diverse performance measurement systems are proposed with many of them relying on the balanced scorecard approach in combination with the SCOR model.Performance measures can be categorized according to the dimensions of the balanced scorecard or... 

SCOR model as well as their attributes. Table 4.10 shows a classification of performance measures according to aggregation level and type of measure. 

SCOR model focuses on five basic supply chain processes, as described below ... 

The first two conditions can be achieved by employing the SCOR reference model. IDEFO technique is an ideal technique for the third condition. By integrating SCOR with IDEFO, it is possible to model the interdependencies between activities of e-SCM. The procedure developed by Al-Hakim (2003) can be usedto accommodate the level of security required by e-netwoik entities. The following two sections outline the SCOR model and IDEFO techniques. 

The supply ehain operations reference (SCOR) model is an industry standard approach to define, design, and improve supply chains (Stewart, 1997). The Supply Chain Council has developed and endorsed the SCOR model as the cross-industry standard for supply chain management. 

The SCOR model tries to capture end-to-end business operation processes, including (Supply Chain Council, 2003) ... 

The eSCM-I procedure adopts the concept of standardization by using the SCOR model at the first step ofthe procedure presented in step 1. The second step is the use of the IDEFO technique for business process modeling. Benchmarking and selecting best practices based on SCOR make... 

The first step of the eSCM-I procedure is the standardization of business process using the SCOR model. Mintzberg (1983) suggests the use of standardization as the coordination mechanism for managing interdependencies in business processes. Standardization is the use of standard procedures, processes, materials, and/or parts for designing, manufacturing, and distributing a product. Nassimbeni (1998) claims that standardization can involve inputs, outputs, processes, and skills. 

Figure 13 shows the decomposition of organization Oi from organization level to top level and level 1, respectively. From this decomposition, the detail of interdependencies can be more specifically observed at the extended level for example, level 1 extends to level 2, and level 2 extends to level 3 of the SCOR model. 

Business process benchmarking and the selection of best practices are identified as the tools for supply chain improvement. The SCOR model provides a list of best-in-class practices for each process element. However, SCOR best-in-class practices are generic lists. A best practice that has a significant effect on the performance of a certain... 

The eSCM-I procedure uses the SCOR model for purposes of process standardization. This standardization step plays an essential role as a coordination mechanism to manage interdependencies within a supply chain network. 

IDEFO was selected to model SCOR business processes. The IDEFO technique has been found suitable for the purpose of describing SCOR processes in general when the flow of information and the independency relationships are to be considered. The IDEFO method has the potential to contribute additional aspects that are not represented in the current SCOR models, resulting in a more comprehensive representation of supply chain processes. IDEFO identifies the interdependency relationships in terms of input, output, control, andmechanism. This identification is very... 

The SCOR model provides a list of best-inclass practices and features for each process element which allows individual trading partners to analyze, compare, and apply the best practices. However, there is no indication of how to select and apply the various alternative best practices at the microanalysis level. This research suggests the suitability of using the traditional flowcharting method for selecting best practices in the SCOR environment using a gap analysis approach. 

Bolstorff, P, Rosenbaum, R. (2003). Supply chain excellence A handbook for dramatic improvement using the SCOR model. New York AMACOM. 

Table 9.4 listed enabling processes from the Supply-Chain Council s SCOR model. Table 16.3 lists the enable processes again, along with examples of how they contribute to institutionalizing supply chain changes. 

The SCOR model from the Supply-Chain Council is an industry-developed reference model that covers a broad spectrum of generic supply chain processes. SCOR is an acronym for the Supply Chain Operations Reference Model. Its application requires considerable effort in understanding the model structure and digging out the details that apply to an individual company s situation. 

A technique called a node tree, borrowed from a systems analysis technique called IDEFg, is useful. It is described in Section 24.3.2. IDEFq is widely used in analyzing activities in processes. An alternative, or even supplemental approach, is to use the SCOR model developed by the Supply-Chain Council. Section 23.1 describes the SCOR model. 

Application of best practices. Early planning, benchmarking, and supply chain modeling can pave the way for new products. Through its SCOR model, the Supply-Chain Council has developed techniques to apply best practices in product planning. Section 23.1 provides a SCOR overview. 

Gate 3. Decision on business case Perform conceptual design of newsupply chain (if applicable) Prepare first-cut discovery-driven planning model Apply SCOR model... 

In supply chain management (SCM), linkages play the roles of eon-ductor and sheet music. The SCOR model from the Supply-Chain Couneil is an example of one method for coordinating the supply chain. Another example, in the Toyota Production System, is the kanban system that signals the need for more parts. Proactive systems deseribed in Chapter 30 that use business rules to automate decision making are another example. The decision to use any particular technique at a point in time is an important supply chain design feature. 

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