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Supply-Chain Operations Reference (SCOR)     Print

A process reference model endorsed by the Supply-Chain Council (SCC) as the cross-industry de facto standard tool for supply chain management. SCOR is a management tool, spanning from the supplier's supplier to the customer's customer.

The model is based on 3 major "pillars":

The Process Modeling Pillar

SCOR is based on five distinct processes: Plan, Source, Make, Deliver, and Return.

  • Plan - Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production, and delivery requirements.
  • Source - Processes that procure goods and services to meet planned or actual demand.
  • Make - Processes that transform product to a finished state to meet planned or actual demand.
  • Deliver - Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management.
  • Return - Processes associated with returning or receiving returned products for any reason. These processes extend into post-delivery customer support

SCOR provides three-levels of process detail. Each level of detail assists a company in defining scope (Level 1), configuration or type of supply chain (Level 2), process element details, including performance attributes (Level 3). Below 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.

The Performance Measurements Pillar

The SCOR model contains more than 150 key indicators that measure the performance of supply chain operations. These performance metrics derive from the experience and contribution of the Council members. As with the process modeling system, SCOR metrics are organised in a hierarchical structure. Level 1 metrics are at the most aggregated level, and are typically used by top decision makers to measure the performance of the company's overall supply chain.

The Best Practices Pillar

Over 430 executable practices derived from the experience of SCC members are available.

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