supply-chain operations reference discussionweb.wilkes.edu/jennifer.edmonds/mba_513/scor.pdf ·...
TRANSCRIPT
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Supply-Chain Operations Reference
(SCOR)
By: Matt, Scott, Anas
Discussion
Operating Strategy
History and Background
What is SCOR
Model
Benefits
Supply Chain Management for a Better World
SCOR
Operational Strategy
Mission Statement
Overall Company Strategy
Company Operational Strategy
SCOR
Developed by the supply chain council
(www.supply-chain.org)
Described as “most promising model for supply chain
strategic decision making (2)
Model integrates business concepts of process, re-
engineering, benchmarking, and measurement into its
framework (2)
(2) Huan, Samuel. Sheoran, Sunil. Wang, Ge. A research and analysis of supply chain operations reference (SCOR) model.
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SCOR History and Background
SCOR: Management tool used to address, improve, and
communicate supply chain management decisions within
a company and with suppliers and customers of a
company (1)
Explains the process along the entire supply chain and
provides a basis for how to improve those processes
http://scm.ncsu.edu/public/facts/facs041027.html, (1) SCOR Model, Supply Chain Council, October 7, 2004.
What is SCOR
SCOR is a supply chain process reference
model
Contains over:
200 process element
550 metrics
500 best practices
Organized around 5 processes
Supply Chain Reference Model
Describes the business process required to satisfy a
customer’s demands.
SCOR Reference Model
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Process spans from “the supplier’s supplier to the
customer’s customer
Framework
Focuses on 5 areas of the supply chain
Plan
Source
Make
Deliver
Return
Repeat again and again in the supply chain
(3) Supply Chain Management: An International Journal, Vol. 9, Num. 1, 2004.
Supply Chain Reference Model
SCOR Overview Plan
Demand and supply planning
Include Balancing Resources
Determine business rules
Rules span inventory, transportation, assets and
regulatory compliance
Supply chain plan aligns with financial plan of the
company
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Source
Describes sourcing infrastructure and materials
acquisition
Describes how to
Manage inventory
Supplier Network
Supplier Agreements
Supplier Performance
Describes handling payments and when to receive,
verify and transfer product
Make
Manufacturing and Production
Make to order
Make to stock
Engineer to order
Includes
Production activities
Packaging
Staging product
Releasing product
Includes managing the production network,
equipment/facilities, and transportation
Deliver
Includes
Order management
Warehousing
Transportation
Receiving orders from customers and invoicing them
Steps involve
Management of finished inventories
Assets
Transportation
Production life cycles
Importing and exporting requirement
Return
Be prepared
Return of containers
Packaging
Defective Products
Involves the management of
Business rules
Return inventory
Assets
Transportation
Regulatory Requirements
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The US Department of Defense
• The SCOR helps the war fighter at the tactical level.
• Managing the supply chain in the DOD comes from
knowing the customer demand (war fighter).
• Manage the supply chain from end to end.
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The US Department of DefenseLevel 1 :
• SCOR looks at the entire of supply chain for best
meeting the requirements of the war fighters.
for example : the days of inventory.
• Integrate with 500 keys.
• The model examine the process performance.
The US Department of Defense
• The DOD put the metrics under the five management
process.
Plan Source Make Deliver Return
(length) (Quality) (Finishing) (Warehousing) (Repair)
The US Department of Defense
• Reduce inventory, improve the accuracy of forecasting.
• It define Five performance attribute:
Reliability . Cost.
Responsiveness . Asset.
Flexibility .
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The US Department of DefenseLevel 2:
• The Model analyze the material flow from end to end
based on the organization strategy.
• What type of product depends on what season.
The US Department of DefenseLevel 3:
• Drill deeper in the organization information flow.
• Validate the impact of improvement
As is To be
Level 4:
• Implementation level
Outside the scope of SCOR.
The US Department of Defense
Results of using the SCOR model in the DOD:
• The model is used for the organization to learn from the
other.
• It gives a road map between the present performance
and the future performance.
• Reduce the time for the war fighter demand satisfaction.
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Benefits of Using SCOR ModelHelps the company analyze its supply chain
Gives ideas on how advanced a company’s supply chain
really is
Allows understanding on how the 5 steps repeat over
and over again between suppliers, company, and the
customers
Each step in the supply chain is a link
Chains are only successful if links stay together
SCOR model used to identify supply chain problems
Enables companies to leverage their investment, create
a supply chain road map and alignment of business
functions for a better return on investment
See: www.supply-chain.org for more information
Any Questions