Wednesday, April 15, 2009

SCOR - Supply Chain Operations Reference - Model

Supply Chain Operations Reference- model (SCOR) was developed and endorsed by the Supply Chain Council to be used as a standard of metrics to determine best practice with respect to all aspects of the supply chain process. It is used as a diagnostic tool in supply chain management which covers every level from the “supplier’s suppliers to the customer’s customer” to improve supply chain management.

SCOR encompasses three basic concepts:

Process Modeling:

  • Plan to meet sourcing, acquisition, production, inventory and transportation requirements
  • Source to procure goods and services
  • Making the products or developing the service
  • Deliver which is transport management
  • Returns which encompasses reverse logistics

Performance Measurements Pillar: Use of key indicators to measure performance to measure the company’s overall performance

The Best Practice Pillar: Conduct a gap analysis to determine where the company is verses where it needs to be by using the SCOR Model

  • Develop structured processes that are repeatable and consistent
  • Use current supply chain practices
  • Use proven success processes
  • Develop methods of business processes and strategies
By using the Supply Chain Operations Reference - model, supply chain managers have a proven and successful process to follow, compare, and use of metrics to compare current company practices against a proven supply chain model.

Sources
Supply-Chain.Org :: SCOR Model
Army Logistician (Understanding the Supply Chain Operations Reference Model)

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