To move the needle on supply chain performance, organizations require savvy operators, supervisors and leaders who understand global standards. The Supply Chain Operations Reference (SCOR) model is the only comprehensive, universally accepted and open-access supply chain standard. SCOR gives organizations the ability to assess and improve their company’s supply chain, leading directly to improved business performance.
The new SCOR DS features the biggest update to SCOR since inception and modernizes the framework to include sustainability standards and the digital body of knowledge. This version shifts thinking from a linear supply chain model to a more synchronous network. Developed by a diverse group of subject matter experts, SCOR DS also updates processes, metrics, skills and practices to ensure coverage across industries.
The infinity loop diagram illustrates that supply chains are an ever-moving series of activities, with no artificial starts or stops from process to process
The SCOR model describes the business activities associated with all phases involved in satisfying customer demand. It has been used by thousands of public and private organizations around the world to assess and improve their supply chains, directly leading to improved operational performance. The updated SCOR model focuses on seven primary management processes: Orchestrate, Plan, Order, Source, Transform, Fulfill and Return.
Orchestrate describes the activities associated with the integration and enablement of supply chain strategies. This includes business rules and enterprise business planning; human resources; network design and technology; data analytics; contracts and agreements; regulations and compliance; risk mitigation; environment, social, and governance initiatives; circular supply chain activities; performance management; and more.
Plan describes the activities associated with developing road maps to operate the supply chain. Planning is executed for the Order, Source, Transform, Fulfill and Return processes, including determining requirements; gathering information about available resources; balancing requirements and resources to determine planned capabilities and gaps in demand or resources; and identifying actions to correct these gaps.
Order describes the activities associated with the customer purchase of products and services, including attributes such as locations, payment methods, pricing, fulfillment status and any other order data.
Source describes the activities associated with procuring, ordering, scheduling the ordering, delivery, receipt, and transfer of products and services.
Transform describes the activities associated with the scheduling and creation of products, including production; assembly and disassembly; maintenance, repair and overhaul; and more.
Fulfill describes the activities associated with executing customer orders or services, including scheduling order delivery, picking, packing, shipping, installing, commissioning and invoicing.
Return describes the activities associated with the reverse flow of goods and services, as well as any service components from a customer through the network in order to diagnose condition, evaluate entitlement, disposition back into Transform or other circular activities.
By using common definitions among all facets of supply chain, SCOR creates a standard by which industry professionals can gauge the maturity and effectiveness of a network and understand how it supports business goals. Take a deeper dive into the model:
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Results are consistent. Implementing SCOR maximizes process efficiency and overall supply chain performance. Typical results include:
Learn how to apply SCOR to your supply chain operations.
The adoption of SCOR as the end-to-end process blueprint dramatically increases the use of standard system functionality and enables more targeted investments in digital capabilities. By combining elements of business process engineering, leading practices, benchmarking, people skills and a variety of metrics into a succinct framework, SCOR makes it possible to pinpoint core process areas that require optimization to further organizational goals.
Interested in learning more about how SCOR fits into the supply chain? This free course, open to all, uses the SCOR DS framework to illustrate how all the pieces of a successful supply chain fit together, how it operates, and ways it can be improved.
Pharmaceutical company F. Hoffmann La-Roche Ltd. pledged to deliver twice as many medical advances at half the cost to society. The overarching goal was to better balance reliability, responsiveness, agility, cost and sustainability — key SCOR metrics categories — across operations, which they were able to achieve through SCOR training and transformation.