The SCOR (Supply Chain Operations Reference Between the set boundaries, SCOR spans

Model) is developed by Supply Chain Council. through:

The model builds its strength around the linkage
between process elements, metrics, best • All customer interactions from order entry
practices and features associated with supply through paid invoice.
chain execution in the areas of: Plan, Source, • All products (both physical material and
Make, Deliver, and Return (briefly described services) transactions, from supplier’s
in following paragraphs). supplier to customer’s customer,
including equipment, spares, supplies,
bulk products, software, etc.
• All market interactions from the
understanding of aggregate demand to
fulfillment of each order.

SCOR is based on five distinct supply chain

management processes:

• PLAN : Demand & Supply Planning and

management
• SOURCE : Sourcing Stocked, Make-to-
order and Engineer-to-order products.
• MAKE : Make-to-order; Make-to-stock
and Engineer-to-order production
execution.
• DELIVER : Order, Warehouse,
SCOR reference model contains: Transportation and installation
Management.
• Standard descriptions & definitions of • RETURN : Return of Raw Materials and
Supply Chain processes. receipt of returns of finished goods.
• A framework of relationships among the
standard processes. Each management process is decomposed and
• Standard Level-1, Level-2 and Level-3 broken down to activity level and metrics
metrics to measure the supply chain defined at each level to measure the process
performance. performance.
• Identifies supply chain practices that
Level 1 Level 2
produces “best-in-class” performance. (P;S;M;D;R) (MTO;MTS;ETO)
Level 3 Level 4 Level 5

Scope Configuration Activity Workflow Transactions

D1.2 EDI
D1 Deliver
D Receive; Enter XML
Stocked
Deliver & Validate
Product
Orders

Differentiates Differentiates Links metrics Sequences Steps Links

Functions Complexity; and best Transactions
Applicable practices
Metrics and Best towards
Practices organizational
excellence
Defines Scope Differentiates Links, Metrics, J ob Details Details of
Capabilities Tasks and Automation
Practices

Standard SCOR practices Company/ Industry definitions

SCOR uses several tools and techniques like –

SCOR model defines supply chain boundaries Business Profiles, Supply Chain Definition Matrix,
from supplier’s supplier to customer’s customer. Competitive Trends, identification of channel
drivers, Geographic Maps, Thread Maps, channel drivers are used to define and
SCORcards, etc., to optimize the performance of differentiate between the different supply chains
supply chain processes. that exist in an organization.

Tools like Supply Chain Definition Matrix,

Competitive Trends, and identification of

SCORcard are Level-1 metrics are aligned to • Supply Chain strategy and competitive
business strategy and translates strategic requirements.
objectives into something measurable. • SCORcard metric definition and identification
SCORcard measures the existing performance of of benchmark sources.
supply chain and compares it with the • Generation of SCORcards for all business
benchmark performance. Gaps between the lines.
actual and benchmark performance are
identified and projects taken to reduce the gap. Based on the SCORcards and Priority Matrix,
The projects are executed thru Lean Six Sigma supply chains are identified for Phase-2.
(LSS) methodology. SCORcards are developed Methodology adopted for Phase-2 is as follows:
for every supply chains at regular interval and • Enterprise Maps - Understanding of material
map the process improvements. Level-1 metrics and information flow.
in SCORcard are identified to take care of all • Geographic Maps - for understanding the
three integral customers of business – Internal physical customer locations; supplier
Facing; External Facing and Shareholders. locations; plants; routes for inward and
Strategic metrics for Level-1 SCORcard is as outward material movements; lead times;
follows: volume of material moved; etc.
• Value Stream Maps – for manufacturing lead
Attribute Strategic metric times; OPE information; yields; etc.
Reliability Perfect Order Fulfillment • Process Maps – for understanding the
Responsiveness Order Fulfillment Cycle Time information flow processes and value
Agility Supply Chain Flexibility addition by each process.
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Supply Chain Upside/Downside Adaptability • Material Flow Analysis – Understanding the

Cost Total Supply Chain Management Cost revenue generated by each distribution
Cost of Goods Sold node; inventories; transportation costs; etc.
Assets Cash-to-Cash Cycle Time • Staple Yourself exercise – for establishing
In
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ra

the process lead time.

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Return on Supply Chain Fixed Assets

Return on Working Capital • Level 2 process maps – for understanding
Profitability Gross Margin (Gross Profit) the relationship between the actual
Operating Income (PBDIT) practices and SCOR defined practices. Also,
Net Income (Net PBT) identification of main KPIs being measured
currently.
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Return Return on Assets

SCOR can be implemented in two phases. In
Phase-1, following activities were performed:
• Understanding the business product lines.
• Development of Supply Chain Profiles for all
businesses.
• Development of Supply Chain Definition
Matrix (SCDM).
• Understanding Supply Chain Trends –
Revenues; Competition; Channel Drivers.
• Metric Gap Review – Establishing the gap
between existing KPIs and SCOR metrics.
• Best Practices Review - Identification of
scope of implementation of best practices as
defined by SCOR.
• Hypothesis building – Based on the existing
level 2 process, building the hypothesis for
or against their performance.
• Validation of hypothesis and identification of
opportunities for improvement.
Several projects are identified thru SCOR
methodology to achieve Supply Chain
excellence.