Supply Chain Operations Reference (SCOR) Model
Download “Supply Chain Operations Reference Model” here.
You may be wondering, “What is an operations reference?” SCOR is a process model, and separately, but related, a measurement model.
As a process model it follows the supply chain through five functional areas. These are called the Level 1 processes.
In the attached slide-set you will see the definition of each, and additional (Level 2) details of sub-processes (slides 4 – 8). The purpose of this process model is to ensure you have the correct processes in place so you can profitably serve your customers.
The measurement model is hierarchical. It first wants to be sure that you consider the Voice of the Customer and the Voice of the Business. Measures should ensure you take care of the customer and take care of the business. Only when an organization does both, can it thrive.
Within the Voice of the Customer and Voice of the Business are five key aspects of Supply Chain Excellence. Supply chains should be:
- Low Cost
- Efficient Asset Managers
Finally, there are nine specific, high level, measures that SCOR recommends you use to determine if you are achieving Supply Chain Excellence. Additional details about each measure are shown on the linked slide-set (slides 13 – 22).
- Perfect order fulfillment
- Order fulfillment cycle time
- Upside supply chain flexibility
- Upside supply chain adaptability
- Downside supply chain adaptability
- Total supply chain management costs
- Cash-to-cash cycle time
- Return on supply chain fixed assets
- Return on working capital
Like another important performance measurement model, The Balanced Scorecard, measures are only useful if you do something to make them better. We recommend a monthly review of your SCOR measures, creating action items to improve where there are performance gaps.