SUPPLY CHAIN UPDATE Grainger Center for Supply Chain Management SCOR

I n 1996, the Supply-Chain Council (SCC) developed the supply-chain operations reference (SCOR) model as the cross-industry standard for redefining and advancing supply chain management systems and practices. The SCOR model is a process reference model that integrates business process reengi-neering, benchmarking, and best practices. The SCOR model framework contains standard descriptions of management processes and metrics for performance. The SCOR model breaks down supply chain processes into five categories: Ⅲ Plan – The planning phase balances resources with business process requirements, manages the business rules, data collection, and general execution, and aligns the supply chain reconfiguration with financial goals. This phase sets the scale of the overall project. Ⅲ Source – The sourcing phase handles deliveries and inbound logistics, identifies and selects supply sources, manages supplier and strategic supply relationships, and coordinates product receipts. The sourcing stage is the first discrete element along the supply chain included in the SCOR model. Ⅲ Make – During the make stage, companies schedule production, finalize engineering decisions, and manage the operating assets along the supply chain. This element is the largest of the five stages. Ⅲ Deliver – Warehouse management, outbound logistics, distribution decisions, and invoicing are managed during the deliver stage. Companies gain their first interaction with end users and paying customers during this stage. Ⅲ Return – The return stage encompasses all reverse logistics issues and initiatives, including fielding customer complaints, returning defective products to production or suppliers, and determining the eventual disposition of returned products. Once the supply chain is broken down into the SCOR process framework, it can be decomposed into process elements to provide a balanced, configurable series of iterations. This allows the redesign of entire supply chains as a system rather than discrete elements. The scope of the SCOR model contains three levels of process detail, enabling companies to focus on specific elements within the supply chain from a top-down perspective. The three levels of detail are: Ⅲ Top level (process type) – defines the scope and content for the SCOR model. Competitor performance targets are established. Ⅲ Configuration level (process categories) – at this level, a company's supply chain can be configured to order into 30 different process categories. The configuration can be tailored to individual supply chains.