SCC/AQPC Webinar:

SCOR Benchmarking &

SCC Member Benefits

Webinar
Joseph Francis – CTO
Supply Chain Council

This presentation is the exclusive property of the Supply

Chain Council. Copyright © Supply Chain Council. 2006.
All rights reserved. The marks SCOR®, CCOR™, DCOR™
and SCOR Roadmap™ are the exclusive property of the
Supply Chain Council.
Today’s Agenda

• Overview SCC, AQPC

• SCOR Benchmarking

• Wrap-up & Questions

Parity Req
Attribute Metric (level 1) Company Parity Adv Superior
Gap Gap

Reliability Perfect Order Fulfillment 98% 92% 96% 98% -6%

Responsiveness Order Fulfillment Cycle Time 14 days 8 days 6 days 4 days 6 days 8 days

Flexibility Ups. Supply Chain Flexibility 62 days 80 days 62 days 40 days -18 days

Cost Supply Chain Mgmt Cost 10.1% 10.8% 10.4% 10.2% -0.7%

Assets Cash-to-Cash Cycle Time 22 days 45 days 30 days 20 days -23 days

Copyright © Supply Chain Council. 2006. All rights reserved. | 1

Supply-Chain Council

• The SCC is an independent, not-for-profit, global

corporation with membership open to all companies and
organizations interested in applying and advancing
state-of-the-art supply chain management systems and
practices.
• Founded in 1996
• Over 700 Company Members
• Cross-industry representation
• Chapters in Australia/New Zealand, Brazil, Europe, Japan,
North America, South East Asia, and China with petitions
for additional chapters pending.
• The Supply-Chain Council (SCC) has developed and
endorsed the Supply Chain Operations Reference model
(SCOR) as the cross-industry standard for supply chain
management.

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The SCOR Framework

SCOR defines supply chain as the integrated processes of Plan,

Source, Make, Deliver and Return, spanning your suppliers’
supplier to your customers’ customer, aligned with Operational
Strategy, Material, Work & Information Flows.

Plan

Plan Plan Plan Plan

Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source

Suppliers’ YOUR COMPANY Customer’s

Supplier Customer
Supplier Customer
Internal or External Return Internal or External

Supply Chain Operations Reference Model

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SCOR Hierarchy

Level 1 Level 2 Level 3 Level 4 Level 5

Scope Configuration Activity Workflow Transactions

S1
S1 EDI
EDI
Supply-Chain
Supply-Chain S1.2
S1.2
Source
Source
Source Receive Product XML
XML
Source Stocked Product
Product Receive Product
Stocked

Differentiates Differentiates Names Tasks Sequences Steps Links

Business Complexity Transactions
Defines Scope Differentiates Links, Metrics, Job Details Details of
Capabilities Tasks and Automation
Practices

Framework Framework Framework Industry or Technology

Language Language Language Company Specific
Specific Language
Language

Standard SCOR definitions Company/Industry definitions

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The SCOR Project Roadmap

Phase Name Deliverable Resolves

Initial BUILD • Organizational Support Who is the sponsor?

• Supply-Chain Definition
What will the program
I DISCOVER • Supply-Chain Priorities
• Project Charter cover?

• Scorecard What are the strategic

II ANALYZE • Benchmark requirements of your
• Competitive Requirements supply-chain?
• Geo Map
Initial Analysis – where
III MATERIAL • Thread Diagram
• Disconnect Analysis are the problems?

• Transactions
Final Analysis – where
IV WORK • Level 3, Level 4 Processes
• Best Practices Analysis are the solutions?

• Opportunity Analysis
V IMPLEMENT • Project Definition How to deploy?
• Deployment Organization

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APQC MISSION

…to work with people in organizations around the world to

improve productivity and quality by:
• Discovering, researching, and understanding emerging and
effective methods of improvement;
• Broadly disseminating our findings through education,
advisory and information services; and
• Connecting individuals with one another, and with knowledge
and tools they need to improve

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APQC

• Founded in 1977 - funded by 100 corporations

• Non-profit, tax-exempt 501(c)(3)
• Membership - 500 organizations
• Best Practices research and publications
• Benchmarking
• Manage the OSBC data repository
• Consulting and Advisory services
• Conferences and training
• Board of Directors
• 45 senior executives from corporations, education, and
government

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APQC’S VANTAGE POINT

30 years in systematic quality, performance

improvement, and measurement
• One of the Founders of the MBNQA
• Groundbreaking project in knowledge worker productivity
(1989)
• Conducted research and development work on Family of
Measures (1993)
• Performance Measurement: Implementing the Balanced
Scorecard
• Frameworks and Tools for measuring outcomes and
performance

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APQC HISTORY

20
05
SM
OSBC
20
01

19 Six Sigma and Process

95 Improvement

19 Knowledge Management &

91
Collaboration

19 Benchmarking and APQC’s Process Classification Framework

77
-8
3
Productivity and Quality: Malcolm Baldrige

1977 2005

*Open Standards Benchmarking Collaborative Research

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What is Benchmarking

• Best Practices
• Assessment of different components of
processes in relation to “best practice”
• Competitive Metrics
• Assessment of measurable process
performance in relation to competitor’s performance
• Compared Against
• Usually in a specific business sector, or within a sector
against companies with similar demographic profiles
• Used For
• Identifying gaps in competitive performance against
strategic goals
• Opportunities for new techniques in process
implementation

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Benchmarking: Vital for SCOR

• SCOR Implementation
• Competitive positioning
• Performance disconnect analysis
• Prioritizing supply-chain strategies
• Members ask for SCOR-based Benchmarking
• Priority need for over 6 years
• Key benefit of open-standard metrics
• Alignment of benchmarking cycle time to implementation
• Benchmarking is challenging
• Not feasable through technical committees
• Requires substantial infrastructure – people and it
• Quality and reliability critical

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AQPC/SCC Benchmarking

• Access to a no-cost benchmarking portal providing

them with a new resource for metric data directly tied
to the SCOR model.
• Supported by Open Standards Benchmarking
Collaborativesm research
• APQC will serve as a confidential, third-party repository
for SCC members and will collect, validate, and report
benchmarking data
• Data is delivered in the form of
benchmarking reports that will align
participant’s performance
improvement plans as they move
through SCOR implementation

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SCOR Metric Base

• Over 250 critical supply-chain metrics, linked to

process, practices, and supply-chain configurations
• Organized in layers to use in cause-effect analysis and
for ease of calculation
• Based on over a decade in research at SCC with over
2500 Supply-Chain practitioners
• The de-facto industry standard recognized by multiple
organizations

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OSBC Methodology

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Benchmarking Methodology Overview

To launch OSBC research areas APQC:

• Develops content using subject matter experts and industry

representatives
• Collects data using an online survey tool
• Validates all responses
• Analyzes and reports information. All data are reported in a
normalized fashion to mitigate impacts from operational
scale.

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Data Validation: Seven Steps

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Suggested Data Collection Approach

• Access the main webpage for the survey and follow

instructions.
• Review survey scope, definitions, and questions.
• Determine which parts of the organization the survey
information resides.
• Assign team members areas for completion and due dates.
Assign one person to coordinate and oversee data collection.
• Provide each team member with a copy of the data
collection template.
• Consolidate individual survey
components and review for accuracy
and reasonableness.
• After review, revise responses as needed.
• Submit consolidated data collection file
to APQC.

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APQC and Participant Insights

• Divide the benchmarking survey into manageable mini-

projects to collect data.
• Use your best estimation if an exact number is hard to
obtain or skip that question; APQC’s data validation team
can help here.
• When using online survey, complete the data input in
multiple sessions. Make sure you have cookies enabled.
• Print out a copy of your full survey
before submitting to have a final
version for review and to answer
later questions.

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Who You Need: Roles

• Process Owner – Person who is

overseeing or managing this project.
He/she will be responsible to provide
the general information survey. This
is the person who will receive the
benchmarking report.
• Survey Contributors – People
responsible for providing or
completing the specific surveys or
questions according to their function
within the supply chain process.
• APQC Survey Support – Person
that a process owner and/or survey
contributors can go to with any
questions.

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March Launch

• SCOR Benchmark Website

• Registration for Benchmarking
• Preliminary Questions to set up custom survey tool
• Survey and Benchmark
• SCOR Level-1 and Level-2 Metrics
• Partially pre-populated with SCOR-based data
• Global scope of demographic set
• Information Available
• FAQ and tutorials on Benchmarking
• SCOR Metric definitions and interpretations
• Annual publication of summary benchmark data

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Early Testing

• “Beta Testing” of initiative

• Assessment of survey instrument
• Test of reports – layout, content
• First view of metric base and benchmark information
• Limited in availability (current SCOR population)
• Understanding of applicability
• This is a collaborative system
• Member benefit
• Designed with help of volunteers
• Must serve our needs

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For More information

www.supply-chain.org/cs/benchmarking

Or

info@supply-chain.org

Many Thanks!

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