1. SCOR Professional Training
Introduction to the SCOR Supply Chain Operations Reference Model: Overview

2. Introduction: Course Leader
Name
Company/organization
Position
Instructor Introduction
APICS certifications
Experience with SCOR
Other accomplishments
APICS training experience

3. Introductions: Participants
Name
Company/organization
Position
Introduce yourself
APICS certifications
Other accomplishments
SCOR experience
Your objectives

4. Learning Objectives
Explore the origins and goals of the SCOR Reference Model framework.
Understand the structure of the SCOR Reference Model framework sourcebooks.
Work with the five central parts of the SCOR framework: performance, processes, practices, people, and green SCOR.
Develop and work with a SCOR improvement program.

5. SCOR OVERVIEW
Introduction to the SCOR Framework

6. What is SCOR?
SCOR is an acronym for supply chain operations reference model, which was developed to assist businesses in understanding, structuring, and evaluating the performance of supply chains.

7. SCOR Definition
The SCOR model describes the business activities associated with satisfying a customer’s demand, which include plan, source, make, deliver, and return. Use of the model includes analyzing the current state of a company’s processes and goals, quantifying operational performance, and comparing company performance to benchmark data. SCOR has developed a set of metrics and best practices information that companies can use to evaluate their supply chain performance.
APICS Dictionary

8. About SCOR: A Process Framework
Combining four techniques into a single integrated approach
Business Process Improvement
Performance Benchmarking
Best Practices Analysis
Organizational Design
Capture the “as-is” business activity and design the future “to-be” state
Quantify relative performance of similar supply chains and establish internal targets
Identify practices and software solutions that result in significantly better performance
Assess skills and performance needs and align staff and staffing needs to internal targets
Process Reference Framework
Process
Performance (metrics)
Practices
People (skills)

9. Anatomy of SCOR Frameworks
Product and process design
(DCOR)
Sales and support
(CCOR)
Management for supply chain
(M4SC)
Supply chain operations reference model
Product life cycle operations reference (PLCOR)

10. SCOR Reference Sources
Complete SCOR Model Reference sourcebooks. Two volumes containing the complete SCOR reference framework
A quick reference guide providing a detailed summary of SCOR Processes, Metrics, Practices, and People on a single easy-to-use card
An easy to access and use application for mobile devices available through iTunes, App Store, and Android Store – Search: APICS SCOR

11. Advantages of Using the SCOR Framework
Scope of the SCOR framework applies to the entire supply chain
Orients supply chain improvements around standardized set of performance, process, practice, and skills metrics
Enables supply chain performance and practice benchmarking
Centers supply chain improvement efforts on creating value for customers
Applies detailed supply chain metrics to measure supply chain performance
Provides metric and activity alignment across organizational boundaries
Establishes a common repository of supply chain performance terms and toolsets

12. SCOR OVERVIEW
Using the SCOR Reference Sourcebook

13. Structure of the SCOR Reference Sourcebook
The SCOR reference sourcebook consists of five main sections:
Performance
Standard metrics to describe process performance and define strategic goals
Standard descriptions of management processes and process relationships
Processes
Management practices that produce significant better process performance
Practices
Standard definitions for skills required to perform supply chain processes
People
Green
Standard definitions for sustainable business models and environmental accounting

14. SCOR Codification
Each of the four SCOR sourcebook sections has its own codification nomenclature.
SCOR Performance and Processes have a hierarchy of SCOR activities.
SCOR Practices are determined by three separate practices: emerging, best, and standard. Each practice contains a set of relevant practice activities.
SCOR People are determined by a single-level list of skills and processing activities.
Green SCOR is determined by a single-level list of skills and processing activities.
Most of the SCOR activities are crossed referenced across the four SCOR sourcebook sections.

15. Reading SCOR Tables ID name definition metrics practices skills
outputs
inputs

16. Reading SCOR Graphics process ID
SCOR graphics should be considered as example process configurations.
Different supply chains and practices may require different sequences and/ or workflow.
process steps
inputs
outputs

17. SCOR OVERVIEW
Review of SCOR Performance

18. Objectives of SCOR Performance
Performance (SCOR section 1) helps companies:
Translate business strategy to supply chain strategy: How closely is the supply chain strategy meeting business plan objectives?
Measure supply chain performance: How are we doing, how are we trending?
Understand relative performance compared to competitors: How are we doing compared to our supply chain strategy
Identify and monitor processes that most likely cause the performance gaps: What improvement targets should we pursue?

19. Supply Chain Performance: Definitions
Performance attribute: a characteristic used to describe a strategy. Performance attributes serve as classification for metrics and formulate strategic direction
Key performance indicator (KPI): a metric to measure the overall performance or state-of-affairs. SCOR level 1 metrics are considered KPIs
Metric: a standard for measurement
Measurement: an observation that reduces the amount of uncertainty about the value of a quantified metric
SCOR metrics = diagnostic metrics
Monitor and diagnose overall supply chain health.
Diagnostic relationships (hierarchy) enables gap analysis.

20. SCOR Performance Attributes
Strategy
Reliability (RL)
Consistently getting the orders right, product meets quality requirements
Responsiveness (RS)
The consistent speed of providing products/ services to customers
Agility (AG)
The ability to respond to changes in the market (external influences)
Cost (CO)
The cost associated with managing and operating the supply chain
Assets (AM)
The effectiveness in managing the supply chain’s assets in support of fulfillment
Customer
Internal

21. SCOR Performance Attributes: Level 1
Level 1 Strategic Metrics
Reliability
RL.1.1 Perfect order fulfillment
Responsiveness
RS.1.1 Order fulfillment cycle time
Agility
AG.1.1 Upside supply chain flexibility
AG.1.2 Supply chain upside adaptability
AG.1.3 Downside supply chain adaptability
AG.1.4 Overall value at risk (VAR)
Cost
CO Total cost to serve
Asset management efficiency
AM.1.1 Cash-to-cash cycle time
AM.1.2 Return on supply chain fixed assets
AM.1.3 Return on Working Capital
Customer
Internal

22. SCOR OVERVIEW
Review of SCOR Processes

23. Anatomy of SCOR Processes
Plan
Source
Make
Deliver
Supplier processes
Customer processes
Return
Process, arrow indicates material flow direction
Process, no material flow
Information, goods, financial flow
Enable

24. Objectives of SCOR Processes
SCOR Processes help companies:
Document the consensus view of how the business and the enterprise supply chain is organized—What do we do and where? (as-is)
Document the consensus view of the capabilities of the business and the enterprise supply chain—How do we do this? (as-is)
Document and test alternative ways to organize the business and the enterprise supply chain—Test different scenarios (what-if)
Document the desired way to organize the business and the enterprise supply chain—What will we do and where? (to-be)
Document future processes—how will we do this going forward? (to-be)

25. SCOR Processes and the Supply Chain
Plan
Plan
Plan
Deliver
Source
Deliver
Source
Make
Deliver
Source
Deliver
Source
Make
Make
Return
Return
Return
Return
Return
Return
Enable
Enable
Return
Enable
Suppliers’
Return
Customer’s
Customer
Supplier
Supplier
Internal or external
Your
organization
Internal or external
Customers
The integrated process of plan, source, make, deliver, return, and enable spanning from the suppliers’ supplier to the customers’ customer

26. Question: Source Process Flows
Which of the following flows is/are correct?
sS2.2
Receive Product
sS2.4
Transfer Product
sS2.5
Authorize Supplier Payment
sS2.1
Schedule Product Deliveries
sS2.3
Verify Product

27. SCOR OVERVIEW
Review of SCOR Practices

28. Introduction to SCOR Practices: Definition
The Practices section of the SCOR reference manual provides a collection of industry-neutral practices companies have recognized for their value. A practice is a unique way to configure a process or set of processes.

29. Four Types of SCOR Practices: Definitions
Emerging practice: a practice that introduces new technology, knowledge, or radically different ways of organizing processes
Best practices: practices that are current, structured, and repeatable and have a proven and positive impact on supply chain performance
Standard: practices that have been used by a wide range of businesses over a long period of time and that produce acceptable, positive results
Declining: practices that have been used for long periods of time but have become obsolete and even harmful to business and supply chain performance

30. Classification of Practices
Practices by classifications:
business process analysis/improvement
customer support
distribution management
information management
inventory management
manufacturing/production
material handling
new product introduction
order engineering (ETO)
order management
people management (training)
planning and forecasting
product lifecycle management
purchasing
reverse logistics
risk/security management
sustainable supply chain management
transportation management
warehousing

31. Levels of SCOR Practices
Emerging practices
Best practices
Standard practices
SCOR practices repository
SCOR processes
SCOR practices
Level 2 processes
Level 3 processes
Application

32. Best Practice Selection
Are all best practices equally important for you?
SCOR contains more than 170 practices today: do you need all?
Implement a best practice IF it makes sense for your specific processes, business, or industry.
Low effort/risk
High effort/risk
quick wins
Sponsor issue
nice to have
consider carefully
How to determine fit?
Assign each best practice a pin.
Determine risk, investment.
Determine return.
Push the pin in the resulting quadrant.
Some pins may not make the table at all if they are not appropriate for your supply chain, business or industry.
High return
Low return

33. Example: Practices Benchmarking
Benchmarking results for a benchmark of 5 supply chains

34. SCOR OVERVIEW
Review of SCOR People

35. Introduction to SCOR People: Definition
The People section of the SCOR reference manual introduces standards for managing talent in the supply chain. This skills management framework within SCOR compliments process reference, metrics reference, and practice reference components with an integrated view of supply chain skills.

36. Key Elements of the People Section
Skill: Capacity to deliver pre-determined results with minimal input of time and energy
Experience: The knowledge or skill acquired by observation or active participation
Aptitude: A natural, acquired, learned, or developed ability to perform a certain kind of work at a certain level.
Training: A particular skill or type of behavior learned through instruction over a period of time
Competency level: The state or quality of being qualified, having the ability, to perform a specific role

37. SCOR Competency Levels
The state or quality of being qualified, having the ability to perform a specific role
Level
Characteristics
Expert
Intuitive understanding of the situation and zooms in on the central aspects; experts understand what is possible and apply experience and knowledge to master new situations.
Proficient
Sees the situation as a whole and acts from personal knowledge and conviction; proficients can prioritize importance based on situational aspects.
Competent
Goal oriented; possesses the skills to perform necessary understands activities and can determine priorities to reach goals
Beginner
Has fully not mastered work skills and has a limited "situational perception" of work activities
Novice
New to the field or activity; a novice needs standard/written procedures or step-by-step detailed instructions; no ability to make judgments based on problem situations

38. SCOR People Competency Grid
Linking People competencies to SCOR.
Novice
Beginner
Competent
Proficient
Expert
Instructions
Written
Familiar
Orientation
Task
Goal
Decision making
Analytical
Intuitive
Problem recognition
Measuring
In SCOR terms, focus on:
Processes
Practices
Metrics
Projects
Domains

39. Defining Skills People (skill)
Each skill is defined by its description
And by association to: experiences, training and aptitudes
Experiences, training, and aptitudes are not directly connected to any other framework element.
Perform-ance (metric)
Aptitude
Process
Experience
Practice (best practice)
People (skill)
Training

40. SCOR OVERVIEW
Review of Green SCOR

41. Introduction to Green SCOR: Definition
The Green SCOR section of the SCOR reference manual introduces a set of strategic environmental metrics that effectively allow the SCOR Model to be used as a framework for environmental sustainability and audit.

42. The Five Green SCOR Metrics
Units
Basis
Carbon Emissions
Tons CO2 equivalent
This is the unit of measure currently used for green house gas emissions and is a measure of the climate impact from CO2 and other global warming air emissions.
Air pollutant emissions
Tons or kg
This includes emissions of major pollutants—Cox, Nox, Sox, Volatile Organic Compounds (VOC) and Particulate. These are the major emissions that the US EPA tracks.
Liquid waste generated
This includes waste that is either disposed of or released to open water or sewer systems (these emissions are generally listed on water emission permits).
Solid waste generated
The total solid waste generated by the process
Percent recycled waste
Percent
The percent of the solid waste that is recycled

43. Green SCOR Levels 1 and 2 Level 1 Level 2
GS Total Supply chain carbon footprint
Level 1
GS Total supply chain environmental footprint
GS Plan carbon emissions
GS Source carbon emissions
GS Make carbon emissions
GS Deliver carbon emissions
GS Return carbon emissions
GS.1.001
Level 2
GS Total supply chain air emissions
GS Total supply chain liquid emissions
GS Total supply chain solid emissions
GS Total supply chain percent recycled
GS.1.002

44. Green SCOR Level 3 GS.2.001 Plan carbon emissions
GS Source carbon emissions
GS Make carbon emissions
GS Deliver carbon emissions
GS Return carbon emissions
5 Level 3 Metrics
2 Level 3 Metrics
GS Total Supply chain air emissions
GS Total Supply chain liquid emissions
GS Total Supply chain solid emissions
GS Total supply chain percent recycled
5 Level 3 Metrics
6 Level 3 Metrics

45. Green SCOR Table: Level 2

46. SCOR OVERVIEW
SCOR Improvement Program: Concepts and Practices

47. Applying the SCOR Framework
How do project teams use the SCOR Reference Model framework to create and continuously apply a program capable of achieving sustainable supply chain improvement?

48. SCOR Improvement Program Racetrack

49. SCOR Improvement Program Workshop Objectives
Learn how to organize a SCOR supply chain improvement program.
Learn how to use the SCOR Model Reference framework to develop an effective supply chain improvement program.
Develop an understanding of the typical steps of a SCOR improvement program.
Develop an understanding of how to use the SCOR supply chain improvement program racetrack.
Develop knowledge and skills to complete key implementation program deliverables.
Explore a case study illustrating the application of the SCOR program racetrack and the SCOR framework.

50. SCOR Global Organization: Example
Corporate
Planning
Merchandising
Operations
Sales
Support
Americas
EMEA
APAC
Americas= North, Middle and South America, EMEA = Europe, Middle East & Africa, APAC = Asia and Pacific

51. Supply Chain Definition Matrix: Example
Criteria: geographical region, country, products
Customers: GE GB
SEU
Mp3 Inc.
product groups
Germany
Belgium
Nether-lands
England and Ireland
France
Italy
Spain
Mp3 players
300*
125 95
265
110 75
Phones
200
planned
250
185 55
PCs 35 21
* Sales expressed in millions
Adapted from Supply Chain Excellence by Peter Bolstorff and Robert Rosenbaum ©2012 Peter Bolstorff and Robert Rosenbaum, AMACOM books, division American Management Association International, New York, NY, p. 47.

52. Supply Chain Geographic Map: Example

53. SCORmark™ Benchmarking: Example

54. SCORmark™ Benchmarking: Level 2 Metrics

55. Future State Map: Example

56. Future State Thread Diagram

57. Alternative Process Workflows: Example

58. Prioritization Matrix
CPFR
Retail sales out data
Retail inventory data
Retail promotions data
Group promotions data
Monthly management review
Aging status flags
Aging reporting
Monthly review
24-hour testing equipment
Return ownership transfer
Renegotiate contracts

59. Return on Investment: CPFR Projects

60. Begin Next Improvement Project

61. Continue the Conversation
Peter Bolstorff, CSCP, SCOR-P
Dominic Longo, CSCP – Key Account Business Development
Executive Vice President, Corporate Development
APICS
Carolyn Lawrence, SCOR-P – SCOR Product Group
Josh Meyers, CSCP – Key Account Business Development
Director, Corporate Development
Melinda Spring, SCOR-P – Research Projects
Director, Corporate Programs

62. SCOR OVERVIEW