The „Supply Chain Operations Reference” model is a product of the Supply Chain Council (SCC), an independent non-profit organization founded in 1996 by PRTM and AMR in conjunction with 69 major companies. The creation of this model is based on the idea of developing a single model for Supply Chain Management that would become a global cross-industry standard. The SCOR model is currently available in 6 versions.
Brief description
The SCOR model defines five central processes stretching through the entire supply chain from suppliers to end customers.
„PLAN”:
It includes planning and allocation of resources, production capacity and trade rules along the Supply Chain and aims to optimize procurement, production and delivery processes in terms of resources and demand.
2. „SOURCE”:
It includes procurement processes for buying goods and services and managing supply sources.
3. MAKE:
It includes the planning and execution of transformation processes that transform the goods and services made available into the products ordered.
4. DELIVER
It includes order management, warehousing, transportation and assembly of products or commercial goods.
5. „RETURN”:
These processes include the organization and execution of return shipments of damaged products, warranty cases and redundant resources to suppliers or from customers.
In the SCOR model, the hierarchical levels shown are as follows:
- Level 1 („Top Level”): By assigning it core processes, it enables a clear presentation of the Supply Chain.
- Level 2 („Configuration Level”): At this level, there are a total of 21 process categories for the Level 1 processes, with which the Supply Chain can be configured. For each SOURCE, MAKE, DELIVER execution process, a warehouse-oriented (MTS), make-to-order (MTO), and engineer-to-order (ETO) variant is provided.
- Level 3 („Process Element Level”): Here, the categories selected at Level 2 are broken down into process chains of individual process elements and transactions. These process elements are further defined based on input and output documentation, best practices, supporting systems, and process indicators.
- Level 4 („Implementation Level”): this level is company-specific and not part of the reference model. When using the SCOR model, processes must be broken down to at least the fourth level to enable the introduction of standardized workflows within the company.
Tasks and objectives
The SCOR model covers the total production chain in an enterprise. Through predefined process components, it is possible to model, describe, measure and evaluate the Supply Chain. The SCOR model can be used to restructure processes or build a new business area or product line. The indicators presented in the model can also be used independently of the application of the model.
Features and requirements
The SCOR model shows the cooperation of enterprises in a global environment based on the value of experience, which is supported in order to establish the model as a standard by the Supply Chain Council. With industry-neutral execution and the ability to configure supply chains, the network of connections can be easily shown.
Application
Further dissemination of the model is shown, for example, in the use of software like eSCOR (Gensym), EasySCOR (IDS-Scheer), SCOR-Wizard (MI) http, ADOLog (BOC Austria), SCOR 5.0 Browser (Compaq), HelpMate (Cobre), Process Repository (Phios).