SCOR Framework

Supply Chain Operations Reference

Presented By:
Samsher Gautam (2K17/EMBA/517)
Rajat Nigam (2K17/EMBA/534)
Supply-Chain Council

• The SCC is an independent, not-for-profit, trade association

• Membership open to all companies and organizations
• Focus is on research, application and advancement and advancing state-of-the-art
supply chain management systems and practices
• Offers Training, Certification, Benchmarking, Research, Team Development,
Coaching, and Cross-standard Integration focused on the SCOR® framework
• Founded in 1996
• Approaching 1000 Association Members
• Chapters in North America, Europe, Japan, South Africa, Latin America,
Australia/New Zealand, South East Asia and Greater China, with developing
Chapters India and Middle East

Driving value through the use of SCOR®

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Supply-Chain

Supply Chain

Customer processes
Plan
Supplier processes

Source Make Deliver

Return Return

Process, arrow indicates material flow direction

Process, no material flow Information flow

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SCOR: A Process Framework

• Process frameworks deliver the well-known concepts of

business process reengineering, benchmarking, and best
practices into a cross-functional framework
• Standard processes: Plan, Source, Make, Deliver, Return, Enable
• Standard metrics: Perfect Order Fulfillment, Cash-to-Cash Cycle Time,
Cost of Goods Sold, Order Fulfillment Cycle Time, etcetera
• Standard practices: EDI, CPFR, Cross-Training, Sales & Operations
Planning, etcetera

• Pre-defined relationships between processes, metrics and

practices and inputs and outputs

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Combines Best Techniques

Business Process Benchmarking Best Practices Process Reference

Re-Engineering Analysis Framework

Capture the ‘As-is’ Capture the ‘As-is’

business activity business activity
structure and derive structure and derive
the future ‘To-be’ state the future ‘To-be’ state
Quantify the Quantify the
operational operational
performance of similar performance of similar
companies and companies and
establish internal establish internal
targets based on ‘best targets based on ‘best
in class’ results in class’ results
Characterize the Characterize the
management practices management practices
and software solutions and software solutions
that result in superior that result in superior
performance performance

• 3 techniques become 1 integrated approach

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End-to-End Supply Chain

Components Sub assemblies Manufacturer Retailer Consumer

Source Make Deliver Source Make Deliver Source Make Deliver Source Deliver Source

Supplier’s Supplier Supplier MP3 Company Customer Customer’s Customer

Process, arrow indicates material flow direction

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Execution Processes

Supply Chain

Customer processes
Plan
Supplier processes

Source Make Deliver

Return Return

• Processes: Source, Make and Deliver

• Objective: value-add, revenue generating
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Capability Models

Level: Different capabilities

Stocked Product (S1, M1, D1)
• Inventory Driven (Plan)
• Standard Material Orders R1
S1 D1
M1 I1
D1

• High Fill-rate, short turnaround

Make-to-Order (S2, M2, D2)

• Customer Order Driven R2
S2 D2
M2 I2
D2

• Configurable Materials
• Longer turn-around times R1
S1

Engineer-to-Order (S3, M3, D3) R3

S3 D3
M3 I3
D3
• Customer Requirements Driven
• Sourcing New Materials R2
R1
S2
• Longest long lead-times, low fill rates
R1
S1

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Source (Process ID: S)

• Objectives of this process:

• The ordering, delivery, receipt and transfer of raw material
items, subassemblies, product and/or services.

• Key processes comprehended:

• Schedule product deliveries
• Receive, inspect, and hold materials
• Issue material to Make or Deliver processes
• Supplier/Vendor Agreements
• Vendor certification and feedback, sourcing quality
• Manage Raw Materials inventories
• Freight, import/export documentation

• Hint: Receiving processes? Probably Source in SCOR

Copyright © Supply Chain Council, 2008. All rights reserved 9

Make (Process ID: M)

• Objectives of this process:

• The process of adding value to products through mixing, separating,
forming, machining, and chemical processes.

• Key Processes Comprehended:

• Schedule production, request and receive material from
Source and/or Make processes
• Manufacture, assemble/disassemble and test product,
package, hold/release product
• Managing product quality and engineering changes
• Managing facilities and equipment, production status
workflow and capacity management
• Manage Work-In-Process (WIP) inventories

• Hint: Itemnumber change? Probably Make in SCOR

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Copyright © Supply Chain Council, 2008. All rights reserved 0
Deliver (Process ID: D)

• Objectives of this process:

• Perform customer-facing order management and order fulfillment
activities including outbound logistics.

• Key processes comprehended:

• Product, service and price quotations
• Order entry and maintenance
• Order consolidation, picking, packing, labeling and shipping
• Import/export documentation
• Customer delivery and installation
• Logistics and Freight Management
• Manage Finished Goods inventories

• Hint: Order taking or Shipping? Probably Deliver in SCOR

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Control processes: Plan, Enable

• Plan and Enable processes prepare the supply-chain to

ensure smooth execution
• Planning processes balance the need for resources,
materials, capacity, etc. with the availability of these
resources. This includes prioritization if needed.
• Enable processes address 8 control aspects for the supply
chain. They monitor compliance, deliver information from
other process areas and highlight dependencies
on these other process areas. They also
support maintenance of relationships
with suppliers.

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Copyright © Supply Chain Council, 2008. All rights reserved 2
Planning Processes

Supply Chain

Customer processes
Plan
Supplier processes

Source Make Deliver

Return Return

• Processes: Plan
• Objective: Drive/coordinate execution processes
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Plan (Process ID: P)

• Objectives of this process:

• The process of determining requirements and corrective actions to
achieve supply chain objectives

• Key Processes Comprehended:

• Supply chain revenue planning/forecasting
• Materials requirement planning
• Factory, repair, maintenance facilities capacity planning
• Distribution requirements planning
• Manage planning parameters

• Hint: Forecasting, S&OP, MRP?

Probably Plan in SCOR

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Copyright © Supply Chain Council, 2008. All rights reserved 4
Enable Processes

Supply Chain

Customer processes
Plan
Supplier processes

Source Make Deliver

Return Return

• Processes: Enable Plan, Enable Source, Enable Make,

Enable Deliver and Enable Return
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Enable Processes

• Objective:
The Enable processes are five groups of processes under Plan, Source,
Make , Deliver and Return with 3 distinct types of objectives:
1. Manage process performance
2. Manage process control data
3. Manage process relationships

• Key processes comprehended:

• Managing business rules and monitoring adherence
• Measuring supply chain performance and determine corrective action
• Managing risk and environmental impact
• Managing the supply chain network and facilities

• Hint: Equipment or plant maintenance? Probably Enable

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Reverse Processes

Supply Chain

Customer processes
Plan
Supplier processes

Source Make Deliver

Return Return

• Processes: Return (Source Return, Deliver Return)

• Objective: reverse material flows
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Return (Process ID: R)

• Objective of this process:

• Moving material from customer back through supply chain to address
defects in product, ordering, or manufacturing, or to perform upkeep
activities.

• Key Processes Comprehended

• Identification of the need to return a product or asset
• Requesting and issuing return authorization
• Inspection and disposition decision-making
• Transfer/Disposition of product or asset
• Managing return transportation capacity
• Managing returned material inventories

• Hint: Reverse material flow? Probably Return in SCOR

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Modeling with SCOR

• Drivers for modeling: Why do you model

• Business opportunities:
• Strategy Development
• Merger, Acquisition or Divestiture (Companies or Supply Chains)
• Process optimization and Re-engineering
• Standardization, Streamlining and Management alignment
• New business start-up (Company and Supply Chain start-ups)
• Benchmarking
• Process Outsourcing

• Technology services:
• Software implementation (ERP, PLM, QC)
• Workflow & Service Oriented Architecture
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Different Model Types

• SCOR recognizes different types of models. Each serving a

different purpose:
• Business Scope diagram: Set the scope for a project or organization
• Geographic Map (a.k.a. Geo Map): Describes material flows in a
geographic context; Highlights node¹ complexity or redundancy
• Thread Diagram: Material flow diagram, focused on level 2 process
connectivity; Describes high level process complexity or redundancy
• Workflow or Process Models: Information, material and work flow
diagram at level 3 (or beyond); Highlights information, people and
system interaction issues

¹) A node represents a logical or geographic entity in a supply chain.

Examples: Warehouse, Factory, Store

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Creating a Scope Diagram

• Steps to create a Business Scope Diagram

1. Create or open the business scope diagram template
2. Identify customers of your organization or project and enter these in the
customers column in the scope diagram.
3. Identify and enter the key nodes within your organization or project. A
node represents a logical or geographic entity in the supply chain.
Consider: Warehouse, Factory, Store, HQ etc.
4. Identify and enter the suppliers of your organization or project
5. Optionally link the nodes to reflect material and/or information flows. Use
a different color and/or stroke differentiate material and information
flows. Example:

Material and information flow

Information flow

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Creating a Scope Diagram

Steps to create a Business Scope Diagram

Supplier My Organization Customer 1. Create or open the business scope diagram template
2. Identify and enter the customers of your project or
organization
3. Identify and enter the key nodes within your project
or organization
4. Identify and enter the suppliers of your project or
organization
5. Optionally link the nodes to reflect material and/or
information flows (using different color/stroke)
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Supplier My Organization Customer Supplier My Organization Customer

Flash Inc. mp3 HQ Flash Inc. mp3 HQ

5 5

Battery ltd. Battery ltd.

Factory DC Retail Inc. Factory DC Retail Inc.

Comps Comps
4 3 2

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The Result: Scope Diagram

Suppliers mp3, Inc. Customers

Flash Inc. mp3 HQ

Battery ltd. Factory Retail, Inc.

Components

Warehouse

Service Providers
Material and information flow
Information flow 2
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SCOR Metrics

• Definitions:
• Performance Attribute: a characteristic to describe a strategy.
Performance attributes serve as classification for KPIs and metrics
• Key Performance Indicator (KPI): a metric that is representative
to measure the overall performance or state-of-affairs
• Metric: a standard for measurement
• Measurement: an observation that reduces the
• amount of uncertainty about the value of a quantity

• SCOR metrics: Diagnostic metrics

• Linked to business objectives
• Highlight the gap in performance
• Change over time is more valuable than a single sample

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Copyright © Supply Chain Council, 2008. All rights reserved 4
‘Levels’ in Metrics

• Level 1: Strategic metrics a.k.a. Key Performance Indicators

• Measure overall supply chain performance; health of the supply chain
• Set the scope and objectives for a supply chain, project or organization
• Translate a business problem or strategy into something measurable
• Establish the priority or priorities for organization

• Level 2: Diagnostic metrics

• Measure a part of the supply chain and/or a part of the strategic metric
• Provide direction to where problems originate
• Caution: Level 2 metrics do not by definition add up to a level 1 metric

• Beyond level 1 and 2: all metrics are called level 3

• SCOR does not specify levels for metrics that are not level 1 or 2
• These metrics serve as further diagnostic tools
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Benchmarking

• Definitions
• Benchmarking: Comparing an organization’s performance,
products, practices, and/or services with those of other organizations
that operate in the same or comparable industry
• Parity: Being equal in performance; No real advantage over others
• Advantage: Being in a favorable position; In a stronger position
than
• Superior: Being of high rank or quality; Leading

• Usage
• Establish Goals. Know where you are relative to others (competitors
or peers), and express where you're going.
• Monitor Performance. Track relative progress you and others (your
competitors or peers) make.
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Best Practices

• Definitions:
• Best practice: "A current, structured, proven and repeatable method
for making a positive impact on desired operational results."
• Current: Must not be emerging and can not be antiquated
• Structured: Has clearly stated Goal, Scope, Process, and Procedure
• Proven: Success has been demonstrated in a working environment
and can be linked to key metrics
• Repeatable: The practice has been proven in multiple environments.

• Importance
• Alternatives to the way you do business
• Equalize the competitive landscape

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Types of Practices

• Best practices are Current, structured, proven and

repeatable methods for making a positive impact on
desired operational results.
• Leading practices are innovations adopted by single
companies or industries which provide dramatically
improved performance in a process, but because of
proprietary restrictions, or novelty, are not widely known
or adopted.
• Worst practices or Poor practices: Practices that are
known to produce negative impacts on operational results.

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Thank You !!