SCM Score Model
SCM Score Model
Reference-model
SCOR Overview
PLAN SOURCE MAKE DELIVER RETURN
Version
SCOR is a registered trademark of the Supply-Chain Council
in the United States and Europe 9.0
Supply-Chain Operations
Reference-model
TABLE OF Section One:
What is a Process Reference Model? 1
CONTENTS Section Two:
Model Scope and Structure 3
Section Three:
Applying the Model 15
The Concept of Configurability 15
Modeling with SCOR 16
Business Scope Diagram 17
Geographic Map 18
Thread Diagram 19
Process Models 20
supply-chain management systems and practices. The SCOR-model captures the Council’s
consensus view of supply chain management. While much of the underlying content of the
Model has been used by practitioners for many years, the SCOR-model provides a unique
framework that links business process, metrics, best practices and technology features into a
unified structure to support communication among supply chain partners and to improve the
effectiveness of supply chain management and related supply chain improvement activities.
Member companies pay a modest annual fee to support Council activities. All who use the
SCOR-model are asked to acknowledge the SCC in all documents describing or depicting the
SCOR-model and its use. The complete SCOR-model and other rleated models of the SCC
are accessable through the members’ section of the www.supply-chain.org website. SCC
members further model development by participating in project development teams- SCOR
Further information regarding and other related SCC Models are collaborative ongoing projects that seek to represent
membership, the Council and current supply chain and related practice.
SCORcan be found at
the Council’s web site:
www.supply-chain.org. © Copyright 2008 Supply-Chain Council
SCOR Overview
What Is a
Process Reference Model?
Section Process reference models integrate the well-known concepts of business process reengi-
ONE neering, benchmarking, and process measurement into a cross-functional framework.
Business
Process Best Practices Process
Reengineering Benchmarking Analysis Reference Model
Characterize the
management
practices and
software solutions Characterize the
that result in management practices
“best-in-class” and software solutions
performance that result in “best-in-class”
performance
SCOR Overview 1
A Process Reference Model Contains:
• Standard descriptions of management processes
• A framework of relationships among the standard processes
• Standard metrics to measure process performance
• Management practices that produce best-in-class performance
• Standard alignment to features and functionality
2 SCOR Overview
Model
Scope and Structure
Section The Boundaries of Any Model Must Be Carefully Defined
TWO “From your supplier’s supplier to your customer’s customer”
SCOR spans:
• All customer interactions, from order entry through paid invoice
• All product (physical material and service) transactions, from your supplier’s supplier to your
customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
• All market interactions, from the understanding of aggregate demand to the fulfillment of each
order
Plan
Plan Plan
Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source
SCOR does not attempt to describe every business process or activity, including:
• Sales and marketing (demand generation)
• Research and technology development
• Product development
• Some elements of post-delivery customer support
Links can be made to processes not included within the model’s scope, such as product development, and
some are noted in SCOR.
SCOR Overview 3
Scope of SCOR Processes
SCOR is Based on Five Distinct Management Processes
Source Identify and select supply sources when not predetermined, as for engineer-to-order product.
Manage business rules, assess supplier performance, and maintain data.
Manage inventory, capital assets, incoming product, supplier network, import/export
requirements, supplier agreements, and supply chain source risk.
4 SCOR Overview
Order, Warehouse, Transportation, and Installation Management
for Stocked, Make-to-Order, and Engineer-to-Order Product
Deliver All order management steps from processing customer inquiries and quotes to routing
shipments and selecting carriers.
Warehouse management from receiving and picking product to load and ship product.
Receive and verify product at customer site and install, if necessary.
Invoicing customer.
Manage Deliver business rules, performance, information, finished product inventories, capital
assets, transportation, product life cycle, import/export requirements, and supply chain deliver
risk.
SCOR Overview 5
A Process Reference Model
Differs from Classic Process
Decomposition Models
Process decomposition models are developed
to address one specific configuration of process elements
Process Element
3 Activities
Used to represent many
different configurations of
a similar process
Activities
4
Aggregate a series of
hierarchical process
models
6 SCOR Overview
SCOR Contains
Three Levels of Process Detail
Level
SCOR Overview 7
Process Categories
Defined by the Relationship Between a SCOR Process and a Process Type
SCOR Process
Plan Source Make Deliver Return
Planning P1 P2 P3 P4 P5
Process S1 - S3 M1 - M3 D1 - D4 S/DR1 - Process
Type Execution
S/DR3 Category
Enable EP ES EM ED ER
Practitioners select appropriate process categories from the SCOR configuration toolkit to represent their
supply-chain configuration(s).
Return Processes associated with returning or receiving returned products for any reason.
These processes extend into post-delivery customer support
8 SCOR Overview
At Level 2, Each Process Can Be Further Described by Type
SCOR Process Type Characteristics
Planning A process that aligns expected resources to meet expected demand requirements.
Planning processes:
• Balance aggregated demand and supply • Consider consistent planning horizon
• (Generally) occur at regular, periodic intervals • Can contribute to supply-chain
response time
Execution A process triggered by planned or actual demand that changes the state of material goods.
Execution processes:
• Generally involve - • Can contribute to the order fulfillment cycle time
1. Scheduling/sequencing
2. Transforming product, and/or
3. Moving product to the next process
Enable A process that prepares, maintains, or manages information orrelationships on which planning
and execution processes rely
Each Execution Process has three different possible capabilities of representing and responding to customer orders.
Different supply chain strategy supports corresponding product or service types. These categories also affect PLAN
and RETURN processes.
SCOR Overview 9
SCOR Version 9.0 Level 2
Plan
P1 Plan Supply Chain
Customers
Suppliers
D4 Deliver Retail
Product
10 SCOR Overview
SCOR Level 3 Process flow
Inputs and outputs
Presents Detailed Process Element Information for Source of inputs
Each Level 2 Process Category Output destination
SCOR Overview 11
Examples
SCOR Level 3 Standard Process Element Definition, Performance Process Table
S1.1
Schedule Product Deliveries
Scheduling and managing the execution of the individual deliveries of product against an
existing contract or purchase order. The requirements for product releases are determined
based on the detailed sourcing plan or other types of product pull signals.
12 SCOR Overview
Implementation of Supply-Chain
Management Practices within the
Company Occurs at Level 4 (and below)
D1.7
Select Carriers
D1.6
Route
D1.5
Build
D1.4
Reserve Inventory
D1.3
Consolidate
D1.2
Receive, Enter &
D1.1
Process Inquiry &
D1
& Rate
Shipments
Shipments Loads & Determine
Delivery Date
Orders Validate Order Quote
Deliver
Stocked Product
Task - D1.2.3
Access Credit
Screen
Check Credit
Availability
Clear Order
Activities
Communicate
Contact Results to
Level 5 Accounting Customer
SCOR Overview 13
Performance Attributes and Level 1 Strategic Metrics
Level 1 Strategic Metrics are primary, high level measures that may cross multiple SCOR processes.
Level 1 Metrics do not necessarily relate to a SCOR Level 1 process (PLAN, SOURCE, MAKE,
DELIVER, RETURN).
Performance Attributes
Customer-Facing Internal-Facing
Level 1 Metrics Reliabilty Responsiveness Agility Cost Assets
Perfect Order Fulfillment (RL.1.1) ✓
Order Fulfillment Cycle Time (RS.1.1) ✓
Upside Supply Chain Flexibility (AG.1.1) ✓
Upside Supply Chain Adaptability (AG.1.2) ✓
Downside Supply Chain Adaptability (AG.1.3) ✓
Supply Chain Management Cost (CO.1.1) ✓
Cost of Goods Sold (CO.1.2) ✓
Cash-to-Cash Cycle Time (AM.1.1) ✓
Return on Supply Chain Fixed Assets (AM.1.2) ✓
Return on Working Capital (AM.1.2) ✓
The Metrics are used in conjunction with Performance cost provider against an organization that chooses to com-
Attributes. The Level 1 Strategic Metrics are the calculations pete on reliability and performance.
by which an implementing organization can measure how In SCOR 9.0 metrics coding is introduced. This will sim-
successful they are in achieving their desired positioning plify identification, eliminate confusion for similar-sounding
within the competitive market space. Many metrics in the metrics and is particularly beneficial for benchmarking as it
Model are hierarchical – just as the process elements are is based on the Performance Attributes of the metrics.
hierarchical. Level 1 Metrics are created from lower level The format of the metric ID or number is XX.y.z, where:
calculations and are primary, high level measures that may XX = Performance Attribute. The possible values for XX are:
cross multiple SCOR processes. Lower level calculations • RL = Reliability, _
(Level 2 and 3 metrics) are generally associated with a nar- • RS = Responsiveness, _
rower subset of processes. Level 2 and 3 metrics associated • AG = Agility, _
with Level 1 metrics are included in the 9.0 Metrics • CO= Cost, and _
Hierarchy in the Metrics Chapter. Additional metrics that do • AM = Asset Management. _
not “roll up” to Level 1 are needed as diagnostics (used to y = Level of the metric
diagnose variations in performance against plan) and are z = a unique number
included in the Metrics Chapter with definitions and process
locations listed. Examples: The metric ID for Perfect Order Fulfillment is
SCOR metrics are used in conjunction with Performance RL.1.1. From this you can derive that Perfect Order
Attributes. The Performance Attributes are characteristics of Fulfillment is a strategic (Level 1) Reliability metric. An
the supply chain that permit it to be analyzed and evaluat- example of a level 2 (diagnostic metric) is RL.2.4: Perfect
ed against other supply chains with competing strategies. Condition. Level 3 diagnostic metrics are coded the
Just as you would describe a physical object like a piece of same way; the unique number has been assigned based
lumber using standard characteristics (e.g., height, width, on the alphabetical listing. Future metric additions will
depth), a supply chain requires standard characteristics to be simply receive an incremental number. An example of a
described. Without these characteristics it is extremely diffi- level 3 diagnostic metric is CO.3.141 (Direct Material
cult to compare an organization that chooses to be the low- Cost).
14 SCOR Overview
Applying
the SCOR Model
Section
THREE
SCOR Overview 15
Modeling with SCOR
Drivers for modeling: Why 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
16 SCOR Overview
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:
Components
Warehouse
Service Providers
SCOR Overview 17
Steps to Create a Geographic Map:
1. Create geographic context (a.k.a. the map)
2. Draw and name your customers on the map
a. Identify the level 2 processes
b. List the level 2 processes in the customer on your map
3. Beginning with your customers, repeat this for every node on the map:
a. Identify all supplying nodes (where does material come from)
b. Draw and name these supplying nodes on the map
c. Identify the level 2 processes
d. list these in the node on your map
e. Draw the material flows (arrows connecting the nodes)
4. Repeat until you have included all your suppliers/nodes
Example:
HQ Retail, Inc
P1, P2, S1, P2 Drive
D2, S2 Battery Supplier
Supplier D1, P1, P4
D1, P1, P4
MP3 Factory
P3, S1,
M1, D1
18 SCOR Overview
Steps to Create a SCOR Thread Diagram:
1. Create or open the thread diagram template
2. Repeat these steps for every relevant node on the geographic map:
a. Determine the class of the node (Customer, Supplier, etc) and create a column (node) in the
appropriate class
b. Create process representations for each process listed in the column for this node (D2, M2,
S1, etc)
c. Create process representations for each process listed in the column for this node (D2, M2,
S1, etc)
d. Link the processes to the previous node’s processes (partially using the material flow
information from the Geographic Map)
3. Repeat until all relevant nodes have been created
4. Optionally add information flows (using different color/stroke)
Example:
P1
P4 P3 P2
P2
S2
P4 S1 M1 D1 S1
D1 S1 D1
Battery Drive mp3 Inc mp3 Inc mp3 Inc Retail, Inc
Supplier Supplier HQ Factory Warehouse
SCOR Overview 19
Steps to Establish SCOR Process Models (Workflows)
1. Obtain generic descriptions (this is what people describe)
2. Map these generic descriptions to SCOR process IDs (normalize)
3. Create swimming lanes to reflect organizational boundaries
4. Create workflow with these SCOR processes
5. Add description to workflows to reflect inputs/outputs of the processes
6. Optionally add other relevant information
Example:
Retail, Inc.
(Amsterdam)
S1.1
Schedule
Prod.
Deliveries
mp3
HQ D2.2 C.O. D2.3 C.O. S2.1
(Cupertino) Receive, Reserve Inv. Schedule
Enter, Validate Calculate Prod.
Order Date Deliveries
Inter-Company P.O.
mp3
Factory
(Shenzhen) D1.2 D1.3
Receive, Reserve Inv.
Enter, Validate Calculate
Order Date
C.O. = Customer Order, Inv. = Inventory, P.O. = Purchase Order, Prod. = Product
20 SCOR Overview
Next steps to learn
Attend Supply-Chain Council Trainings Scheduled Globally.
VISIT www.supply-chain.org to find the latest training schedule.
SCOR Overview 21
For more information:
In USA:
Supply Chain Council
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Washington DC, 20005
Tel: +1 202-962-0440
Fax: +1 202-540-9027
Email: [email protected]
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www.supply-chain.org