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The SCOR Model Explained

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.

Announcing the new SCOR Digital Standard (SCOR DS)

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.

Explore the Model

Stay tuned for the next set of updates, including updated level-3 process workflows, which will be included by the end of the year.


SCOR Mode

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

What is the SCOR model?

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.

What is the SCOR model?

Orchestrate

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

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

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

Source describes the activities associated with procuring, ordering, scheduling the ordering, delivery, receipt, and transfer of products and services.

Transform

Transform describes the activities associated with the scheduling and creation of products, including production; assembly and disassembly; maintenance, repair and overhaul; and more.

Fulfill

Fulfill describes the activities associated with executing customer orders or services, including scheduling order delivery, picking, packing, shipping, installing, commissioning and invoicing.

Return

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:

Download the SCOR Introduction

Download the SCOR Introduction

The value of SCOR

Results are consistent. Implementing SCOR maximizes process efficiency and overall supply chain performance. Typical results include:

  • Operating income improvement
  • Two-to-six times return on investment in the first year
  • Improvement in return on assets for fixed-asset technology investments
  • 30% faster digital transformation project implementations
  • Reduction in information technology operating expenses through improved use of standard system functions
  • Ongoing profit improvement of 0.5%-1% per year

Learn how to apply SCOR to your supply chain operations.

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The value of SCOR

How do organizations use SCOR?

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.

How do organizations use SCOR?

FREE COURSE: Introduction to Supply Chain Management Using SCOR

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.

You'll learn:

  • The purpose and structure of the Supply Chain Operations Reference Digital Standard (SCOR DS) framework.
  • The importance of SCOR performance metrics.
  • How to identify and organize the seven processes of the SCOR model.
  • How SCOR practices can advance organizations and their supply chains.
  • About the five stages of a SCOR-DS improvement program.

Start Now

FREE COURSE: Introduction to Supply Chain Management Using SCOR

SCOR at work

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.

Read Case Study

Roche Case Study

Interested in learning how to apply SCOR to your supply chain operations? We can help.

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