Supply-Chain Council

Process reference models integrate the well-known concepts of business process reengineering, benchmarking, and process measurement into a cross-functional framework. 

Bill Helming, PittigUo Rabin Todd McGrath 

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The Supply Chain Operations Reference-model [12] has been developed and endorsed by the Supply-Chain Council (SCC), an independent non-profit-making corporation, as the cross-industry standard for supply-chain management. 

Supply Chain Council (2006). Supply-Chain Operations Reference-model-SCOR overview, Supply Chain Council, Inc., Pittsburgh, PA. Available at http //www.supply-chain.org. 

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... 

Comparable methodologies include the SCORE methodology by the Supply Chain Council (Morrow et al. 2009), which has now been extended to include risk assessment. It is however notable that this method uses benchmarking, not simulation for assessment. 

Morrow, Dave, Taylor Wilkerson Melinda Davey. 2009. Managing Risk in Your Organization with the SCOR Methodology. Supply Chain Council, Inc. 

Supply chain management (SCM) is a network of entities that encompasses every effort involved in producing and delivering a final product, from the supplier s supplier to the customer s customer (Supply Chain Council, 1997, in Lum-mus Vokurka, 1999). A key principle is that... 

The SCOR process reference model was established by the Supply Chain Council (SCC) in 1996 for standardization purposes. The model describes, characterizes, and evaluates acomplex management process. Such a model builds on the concepts of business process reengineering (BPR), benchmarking, and process measurement by integrating these techniques into a cross-functional framework. 

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. 

Figure 2. Integrated concepts for process reference model (Source Supply Chain Council, 2003)...

Supply Chain Council. (2003). Supply-chain operations reference model version 6.0. Retrieved August 8,2003, from http //www. supply-chain.org... 

Barcodes and Electronic Data Interchange (EDI) are also examples of ways to improve communications among companies. A barrier has been the lack of integrated software both inside and outside the company. Efforts underway sponsored by organizations like the Supply-Chain Council seek to standardize definition of data elements and processes. This facilitates supply chain information sharing along the supply chain. 

This chapter presents two basic sphere types product-producing and enable. The former deliver products or services to external customers. Enable spheres create infrastructure for product-producing ones. The label comes from the Supply-Chain Council s Supply Chain Reference Model, or SCOR. Customers for enable spheres are the product-producing spheres. Figure 9.2 illustrates this relationship between product-producing and enable spheres. Product-producing spheres are horizontal in Figure 9.2... 

Enable spheres contain the organization and processes that provide needed infrastructure for product-producing spheres. Their customers are internal, not the buyers and users of company products and services. The Supply-Chain Council s Supply Chain Operations Reference Model (SCOR) lists enable processes that support its five top level processes PLAN, SOURCE, MAKE, DELIVER, and RETURN. For each SCOR process, there is a set of enable processes. 

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. 

In the 2000 to 2003 time frame, the Supply-Chain Council commissioned a Council member team to explore collaboration. The effort has produced another view of the collaboration spectrum, also with three levels. These levels vary by the type of information exchange that goes on between the partners. Ranging from lower to higher levels, these were ... 

Chapter 22 identified two missions for process improvement (1) process evaluation and (2) process redesign. This chapter describes industry-developed process tools that support the first mission, evaluating supply chain processes. The two tools have assembled best practices in SCM. They are products from two SCM business associations, the Supply-Chain Council and the Council of Supply Chain Management Professionals (CSCMP), formerly the Council of Logistics Management (CLM). The CSCMP, in the cited quotation, supplies the reason for describing these models. 

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. 

Members of the Supply-Chain Council developed and now maintain SCOR. Developers include teams of industry practitioners, consultants, and software companies. SCOR incorporates supply chain architectures, performance measures, and best practices for supply chain processes. The model is updated continuously, so new releases occur frequently. 

This chapter moves from the process evaluation methods described in Chapter 23 to methods for process documentation. The need to document extends from as-is to redesigned to-be processes. Our introduction to the subject of processes in Chapter 22 asserted that processes, as building blocks of activities, contribute mightily to competitive position. While process management tools such as the Supply-Chain Council s SCOR, described in Chapter 23, will help, most companies have one-of-a-kind existing processes and unique requirements for future processes. 

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. 

Previous chapters touched on the role of information and associated processes and systems. Chapter 25 described supply chain technology applications. Chapter 23 described the work of the Supply-Chain Council and the Council of Supply Chain Management Professionals (formerly CLM) in promoting supply chain process integration. Within the company. Section 16.3.3 described the S OP (Sales and Operations Planning) process for intermediate-term information exchange between operations and marketing. 

Collaboration CGR Management Consultants defines it as joint planning and execution of supply chain activities. These activities can range from new product development to day-to-day operations. Collaboration includes all aspects of the relationship related to physical movement, information sharing, financial flows, and exchange of intellectual property. Collaboration is also defined as internal between people and functions and external between supply chain companies. The Supply-Chain Council defines collaboration as A relationship built on trust that is benchmarked by the commitment to the team objective and where consensus may not always be achievable but where nothing takes place without the commitment of all involved. ... 

Collaboratory A term coined by participants in the Supply-Chain Council s SCOR update technical committee. It refers to the entity that includes the business, cultural, and system environment needed to build and operate a linkage between partners. 

A related, but not synonymous, term from the Supply-Chain Council is threads. ... 

Supply-Chain Council (see) A nonprofit association of companies interested in supply chain management (SCM). The Council was incorporated in June 1997 as a not-for-profit trade association. The Council offers members an opportunity to improve the effectiveness of supply chain relationships from the customer s customer to the supplier s supplier. Its primary mission is to develop and maintain its Supply-Chain Operations Reference Model, or SCOR. 

Jennings, Dana and Kling, Greg, Integration of disparate enterprise IT systems, presented at Supply-Chain World Conference sponsored by the Supply-Chain Council, April, 1999. 

Delivery reliability It refers to the capacity to deliver the products to the customer on promising criteria (time, quantity, location, etc.) (Celebi et al. 2010 Stock et al. 1998 Supply Chain Council 2012). 

Receiving completeness It refers to the activities needed to be done after receiving goods. They are unloading the product of the transport carrier, updating inventory record, inspecting to find whether there is any quality and quantity inconsistency (Supply Chain Council 2012). 

Dehvery perfect condition It refers to the percentage of delivery in undamaged state that meets specification, has the correct configuration, and faultlessly installed (Supply Chain Council 2012). 

Order delivery in fuU It is the percentage of orders which all of the items are received by customer in the quantities committed (Supply Chain Council 2012). 

Order delivery to customer commit date It is all about the order received on times as defined by the customer, and the delivery is made to the correct location and customer entity (Supply Chain Council 2012). 

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