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Supply Chain Operations Reference model (SCOR) Overview Scott Stephens Chief Technology Officer SupplyChain Council, Inc. April 1999 Version 1 ? The SCC is an independent, notforprofit, global corporation with membership open to all panies and anizations interested in applying and advancing stateoftheart supply chain management systems and practices. ? Over 750 Company Members ? Crossindustry representation ? Chapters in Australia/New Zealand, Brazil, Europe, Japan, North America, and South East Asia with petitions for additional chapters pending. ?The SupplyChain Council (SCC) has developed and endorsed the Supply Chain Operations Referencemodel (SCOR) as the crossindustry standard for supply chain management SCC Organization Chapters and Staffing Australia/New Zealand Chapter Sydney, Australia Owens Global Logistics South East Asia Chapter Singapore Venture Inc. Japan Chapter Tokyo, Japan NEC SCC Global Headquarters Pittsburgh, Pennsylvania, USA HP Europe Oslo, Norway Modus Media Southern Africa Johannesburg, South Africa UTi North America Chapter Effective 7/1/03 Brazil Chapter Effective 9/1/03 SCC Leadership Teams Membership ? 750+ SCC members, ? Composition ? 40%: Practitioners ? 25%: Enabling Technology Providers ? 20%: Consultants ? 15%: Universities, Associations, Government Organizations S C C M e m b e r C o m p o s i t i o n P r a c t i t i o n e r sS o f t w a r e V e n d o r sC o n s u l t a n t sU n i v e r s i t i e s / G o v .O r g s / A s s n s .S C C M e m b e r s h i p b y R e g i o nN o r t h A m e r i c aE u r o p eJ a p a nO t h e rCurrent Technical Projects Supply Chain Operations Referencemodel (SCOR) Overview Quantify the operational performance of similar panies and establish internal targets based on “bestinclass” results Benchmarking Characterize the management practices and software solutions that result in “bestinclass” performance Best Practices Analysis Process Reference Model Capture the “asis” state of a process and derive the desired “tobe” future state Business Process Reengineering Capture the “asis” state of a process and derive the desired “tobe” future state Quantify the operational performance of similar panies and establish internal targets based on “bestinclass” results Characterize the management practices and software solutions that result in “bestinclass” performance What is a process reference model? ? Process reference models integrate the wellknown concepts of business process reengineering, benchmarking, and process measurement into a crossfunctional framework Supplier Plan Customer Customer’s Customer Suppliers’ Supplier Make Deliver Source Make Deliver Make Source Deliver Source Deliver Internal or External Internal or External Your Company Source SCOR is structured around five distinct management processes SCOR Model Return Return Return Return Return Return Return Return Customers Suppliers P1 Plan Supply Chain Plan P2 Plan Source P3 Plan Make P4 Plan Deliver Source Make Deliver S1 Source Stocked Products M1 MaketoStock M2 MaketoOrder M3 EngineertoOrder D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products S2 Source MTO Products S3 Source ETO Products SupplyChain Operations Referencemodel (SCOR) Processes Return Source P5 Plan Returns Return Deliver SCOR Boundaries ? SCOR Spans: ? All supplier / customer interactions ? Order entry through paid invoice ? All physical material 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 ? Returns SCOR Boundaries (cont’d) ? SCOR does not include: ? Sales administration processes ? Technology development processes ? Product and process design and development processes ? Some postdelivery technical support processes ? SCOR assumes but does not explicitly address ? Training ? Quality ? Information Technology (IT) administration (nonSCM) Material Flow SCOR Level 1 Operations Strategy Analyze Basis of Competition SCOR Level 2 Configure supply chain Align Performance Levels, Practices, and Systems Implement supply chain Processes and Systems SCOR Project Roadmap ?Competitive Performance Requirements ?Performance Metrics ?Supply Chain Scorecard ?Scorecard Gap Analysis ?Project Plan ?AS IS Geographic Map ?AS IS Thread Diagram ?Design Specifications ?TO BE Thread Diagram ?TO BE Geographic Map Information and Work Flow ?AS IS Level 2, 3, and 4 Maps ?Disconnects ?Design Specifications ?TO BE Level 2, 3, and 4 Maps Develop, Test, and Roll Out ?Organization ?Technology ?Process ?People SCOR Level 3 Mapping material flow Latin American Suppliers (D1) Warehouse Other Suppliers (D1) Manufacturing European Supplier (S1) (SR1,SR3) CustomerCustomerCustomerCustomer(S1, D1)