Quality Q&A :What is the SCOR model?

 

The acronym stands for the Supply Chain Operations Reference. The SCOR model identifies five general management processes. It’s a process reference model developed as a standard diagnostic tool.

According to APICS:

“Process reference models integrate the well-known concepts of business process engineering, benchmarking, process measurement and organizational design into a cross-functional framework. The Supply Chain Operations Reference (SCOR) model is unique in that it links business processes, performance metrics, practices, and people skills into a unified structure. It is hierarchical in nature, interactive and interlinked.”

The five areas of the supply chain included are:

Plan
Demand and supply planning and management are included in this first step. Elements include balancing resources with requirements and determining communication along the entire chain. The plan also includes determining business rules to improve and measure supply chain efficiency. These business rules span inventory, transportation, assets, and regulatory compliance, among others. The plan also aligns the supply chain plan with the financial plan of the company

Source
This step describes sourcing infrastructure and material acquisition. It describes how to manage inventory, the supplier network, supplier agreements, and supplier performance. It discusses how to handle supplier payments and when to receive, verify, and transfer product.

Make
Manufacturing and production are the emphasis of this step. Is the manufacturing process make-to-order, make-to-stock, or engineer-to-order? The make step includes, production activities, packaging, staging product, and releasing. It also includes managing the production network, equipment and facilities, and transportation.

Deliver
Delivery includes order management, warehousing, and transportation. It also includes receiving orders from customers and invoicing them once product has been received. This step involves management of finished inventories, assets, transportation, product life cycles, and importing and exporting requirements.

Return
Companies must be prepared to handle the return of containers, packaging, or defective product. The return involves the management of business rules, return inventory, assets, transportation, and regulatory requirements.

Additional Source – Supply Chain Council