SCOR Model Steps

Planning through the SCOR Model involves determining demand, planning supply and managing the material. It determines the resources needed to meet the requirements, plans and coordinates the process of the supply chain, and the returns are included as well. Since it is the very first step in the SCOR Model, it also determines the execution of the other steps. It includes all the factors such as business rules, inventory, transportation, data collection, and compliance. The supply chain model works with the financial model in coordination.

Sourcing in the SCOR Model involves scheduling deliveries, checking them, verifying, transferring and also authorizing payments. Apart from these it also determines the quality and assesses the supplier performance, recording data at the same time. It also manages import and export agreements, along with the supplier agreements.

As you can imagine, this process involves a lot of scheduling production activities, and everything involved in production such as the packaging and staging of the product is carried out. It also manages rules, performance data for production, processes, facilities and equipment.

The Deliver step is all about the steps which involve the delivery of a product. Right from warehouse management to pick up, products are based on customer inquiries, packaging, and shipping. Receiving and installing them at the customer's site is required. It also maintains collective data on the product lifecycle, inventories for production and transportation costs.

The Returns are another important and final step in the process. It includes returning raw materials and products with defects. Inventory control at this level is also created. It assesses the reasons for returns, defects created at what level and the occurrence of defects.

According to the SCOR council, the Supply Chain Operations Reference Model is used by more than 800 companies at various levels. The companies who want to advance and upgrade their supply chain model have had the most desired outcome. Studies and testimonies show that the Supply Chain Operations Reference Model yields results which have met with expectations from the industry critics. Few of the attested results are up to 50% cost reduction in total supply chain costs, improvement in order fulfillment cycles, and reduction in inventory costs. However, these are just a few of the benefits, and there is a whole lot more.

Another factor to consider is that the SCOR Model has a warehouse management and transport infrastructure management included in it. Warehouse management is about benchmarking all the processes like packaging, picking up goods, transportation of goods, and delivery of goods for the entire process involved in a warehouse. The Transportation and Delivery infrastructure management benchmarks procedures connected with transport, freight, shipping costs and quality of products as well.

It further disintegrates the supply chain into 26 components, and each component is looked into individually. Organizations can get an inside picture using this level of what is happening in the supply chain process. The disintegrated supply chain provides information easily, and using this information is the next level in which the SCOR Model can be planned. The next level in the SCOR Model is all about planning and implementing. The SCOR Model will set targets, define benchmarks, and determine capabilities and best practice sharing. The final level is about improvising and implementing the improvised model.

The SCOR Model works along with the Process Reference Model. The process reference model takes into consideration the business process re-engineering and process measurement for benchmarking. The process reference model helps to capture the current state of the business, and gives inputs to develop the business model into a futuristic business. It also describes the standard processes in management, and tries to explore relationships among various processes. The Process Reference Model helps explain complex procedures in a process pertaining to the management of standard procedures. It converts the data and makes it less complex so that the standard metrics can be applied easily. It standardizes the most complex procedures and process into basic ones. Once this standard is achieved, any process can be tuned, tweaked, measured, managed assessed and reassessed.

The SCOR Model can analyze many more levels apart from these. It can go into the core details of any company and try to bring out the best possible results. Though the SCOR Model speaks of 5 steps to analyze and apply, these 5 steps are further categorized and each sub level has a different functionality. When they are all added together, the end result is a well coordinated study which can revamp a company’s supply chain model into a profit making model.

What does each step of the SCOR Model involve?

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