SCOR model
The Supply Chain Operations Reference Model (SCOR) was designed to describe all internal and cross-company business processes by the Supply Chain Council , an independent US non-profit organization . The idea of developing a standard method that can analyze and describe all aspects of a supply chain was developed in early 1996 by two Boston management consultancies, Pittiglio Rabin Todd & McGrath (PRTM) and AMR Research. First the Supply Chain Council was founded with 69 members at the time. This is how the first version of the supply chain operation reference model was created, which was first launched on the market in autumn 1996. The Supply Chain Council has been part of APICS since 2014 .
Based on a conceptual framework, the reference model is further developed in the form of new versions. Version 11 has been valid since December 2012, which has been expanded to include the "enable" process compared to the previous version.
Process categories
The SCOR model is now based on six essential supply chain management processes and links them with well-known concepts such as business process reengineering , benchmarking and best practice analysis . In addition to the six management processes, the SCOR model differentiates between four levels of detail, the last of which is not included in the model as it has to be defined on a company-specific basis.
The process categories already mentioned and relevant for the SCOR model are at the top level in detail:
1. Planning (plan):
- Aggregated demand and supply are to be brought into harmony
2. Procurement (source):
- Provide (pre) products and services
3. Manufacture (make):
- Produce finished / intermediate products that can be delivered to customers
- Make-to-stock (make-to-stock production ), make-to-order ( contract production ), engineer-to-order ( project production )
4. Delivery:
- Deliver finished products or services to customers, including warehouse, order and transport management
5. Return:
- Accept the return of defective products and initiate the return of raw materials (to the supplier)
These processes are expressed at the top level of the SCOR model. Here a company defines the scope of its respective SC. The decisive factor for this is the competitiveness or the competitive advantage.
On the second level, the so-called configuration level, parts of these five SCOR processes are assigned to three process types. These types are specifically:
1. Planning processes
- Processes that are supposed to meet an aggregated demand within a certain planning period.
2. Execution processes
- Processes that are triggered by a planning process and change the status of a product.
3. Support processes (enable)
- Processes that prepare, maintain, or manage information or relationships on which the planning and execution processes are based.
This linking of processes and process types creates a matrix structure that represents all the process combinations involved that should be handled between the partners involved when setting up an SC.
Level three of the SCOR model (design level) describes the individually detailed sub-processes. For each sub-process, the individual process steps, their final sequence and input and output information are shown separately. This level can be described with a flow diagram, which is then described in further detail.
Level four (implementation level) is not included in the SCOR model, as it relates to the individual implementation of the system in the individual company. There are corresponding software solutions that are adapted to the company's technical needs .
In order to make the success of the SCOR model measurable and thus comparable, various special metrics are defined. The cash-to-cash cycle time is an essential measured variable . This describes the period of time how long capital is tied up from the purchase of materials to payment by the customer.
literature
- Rolf G. Poluha: Application of the SCOR model to analyze the supply chain . 4th edition, Lohmar and Cologne 2008, ISBN 978-3899367195 .
- Peter A. Bolstorff, Robert G. Rosenbaum, Rolf G. Poluha: Excellence in Supply Chain Management - A practical manual for optimization with SCOR . Berlin and Heidelberg 2007, ISBN 978-3899367195 .