The “Supply Chain Operations Reference” model is a product of the Supply Chain Council (SCC), an independent non-profit organization that was founded in 1996 by PRTM and AMR together with 69 major companies. The creation of this model is based on the idea of creating a single model for Supply Chain Management that would become a cross-industry standard worldwide. 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.
1. “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 core processes to it, it enables a clear representation of the Supply Chain.
- Level 2 (“Configuration Level”): At this level, there are a total of 21 process categories for Level 1 processes with the help of which Supply Chain can be configured. A warehouse-oriented (MTS), order-oriented (MTO) and construction-oriented (ETO) variant is made available for each SOURCE, MAKE, DELIVER execution process.
- Level 3 (“Process Element Level”): here, the categories selected at Level 2 are decomposed 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 enterprise-specific and is not part of the reference model. When using the SCOR model, processes must be moved to at least Level 4 in order to implement standardized runs in the enterprise.
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).
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