1. Supply Chain Operations Reference Model (SCOR)
Ozgun C. Demirag

2. Supply Chain Operations Reference Model (SCOR): Information about (SCC)
Developed by Supply Chain Council (SCC)
SCC: Independent, not-for-profit corporation organized in 1996 by:
Global management-consulting firm, Pittiglio Rabin Todd & McGrath (PRTM) and
Market research firm, Advanced Manufacturing Research (AMR) in Cambridge, Massachusetts.
Started with 69 voluntary companies; now close to 1000 members.
SCC Objective: To develop a standard supply-chain process reference model enabling effective communication among the supply chain partners, by
Using standard terminology to better communicate and learn the supply chain issues
Using standard metrics to compare and measure their performances

3. Supply Chain Operations Reference Model (SCOR)
Integrates Business Process Reengineering, Benchmarking, and Process Measurement into a cross-functional framework.
Capture the “as-is” state of a process and derive the desired “to-be” future state
Quantify the operational performance of similar companies and establish internal targets based on “best-in- class” results
Characterize the management practices and software solutions that result in “best- in-class” performance
Capture the “as-is” state of a process and derive the desired “to-be” future state
Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results
Characterize the management practices and software solutions that result in “best-in- class” performance
Business Process Reengineering
Benchmarking
Best Practices Analysis
Process Reference Model

4. Supply Chain Operations Reference Model (SCOR)
The Primary Use of SCOR:
To describe, measure and evaluate supply chain configurations.
SCOR contains:
Standard descriptions of management processes
A framework of relationships among the standard processes
Standard metrics to measure process performance
Management practices that produce best-in-class performance
Enables the companies to:
Evaluate and compare their performances with other companies effectively
Identify and pursue specific competitive advantages
Identify software tools best suited to their specific process requirements

5. Supply Chain Operations Reference Model (SCOR): Boundaries
SCOR spans:
• All customer interactions, from order entry through paid invoice.
• All product (physical material and service) transactions, from supplier’s supplier to customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
• All market interactions, from the understanding of aggregate demand to the fulfillment of each order
SCOR does not attempt to describe every business process or activity, including:
• Sales and marketing (demand generation)
• Research and technology development
• Product development
• Some elements of post-delivery customer support

6. Customer (Internal or External) Supplier (Internal or External)
Supply Chain Operations Reference Model (SCOR):Basic Management Processes
Plan-Source-Make-Deliver-Return
Plan
Source
Make
Deliver
Deliver
Source
Make
Deliver
Source
Make
Deliver
Source
Return
Return
Return
Return
Supplier’s Supplier
Return
Return
Customer’s Customer
Customer (Internal or External)
Supplier (Internal or External)
Your Company
Plan-Source-Make-Deliver-Return provide the organizational structure of the SCOR-model

7. Scopes of Basic Management Processes
Plan (Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production and delivery requirements)
Balance resources with requirements
Establish/communicate plans for the whole supply chain
Source (Processes that procure goods and services to meet planned or
actual demand)
Schedule deliveries (receive, verify, transfer)
Make (Processes that transform product to a finished state to meet planned or actual demand)
Schedule production
Deliver (Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management)
Warehouse management from receiving and picking product to load and ship product.
Return (Processes associated with returning or receiving returned products)
Manage Return business rules

8. Three Levels of Process Detail
Return
Level
Description
Schematic
Comments
Top Level
(Process Types)
Level 1 defines the scope and content for the Supply chain Operations Reference-model. Here basis of competition performance targets are set.
Source
Make
Deliver
Plan 1 #
Configuration Level (Process Categories)
A company’s supply chain can be “configured-to-order” at Level 2 from the core “process categories.” Companies implement their operations strategy through the configuration they choose for their supply chain. 2
Process Element Level (Decompose Processes)
Level 3 defines a company’s ability to compete successfully in its chosen markets, and consists of:
Process element definitions
Process element information inputs, and outputs
Process performance metrics
Best practices, where applicable
System capabilities required to support best practices
Systems/tools 3
P1.1
Identify, Prioritize, and Aggregate Supply-Chain Requirements
P1.2
Identify, Assess, and Aggregate Supply-Chain Requirements
P1.3
Balance Production Resources with Supply-Chain Requirements
P1.4
Communicate
Establish and
Supply-Chain Plans
Implementation Level (Decompose Process Elements) 4
Not
in Scope
Supply Chain Operations Reference Model
Companies implement specific supply-chain management practices at this level. Level 4 defines practices to achieve competitive advantage and to adapt to changing business conditions.

9. Level 1 Performance Metrics Customer-Facing Internal-Facing
Supply Chain
Reliability
Responsiveness
Flexibility
Cost
Assets
Performance Attributes
Delivery performance 
Fill rate 
Perfect order fulfillment 
Order fulfillment lead time 
Supply Chain Response Time 
Production flexibility 
Total SCM cost 
Cost of Goods Sold 
Value-added productivity 
Warranty cost or returns processing cost 
Cash-to-cash cycle time 
Inventory days of supply 
Asset turns 

10. Level Metrics Facts
Level 1 Metrics are primary, high level measures that may cross multiple SCOR processes.
They do not necessarily relate to a SCOR Level 1 process (Plan-Source-Make-Deliver-Return).
There is hierarchy among the metrics in different levels.
Level 1 Metrics are created from lower level calculations (Level 2 metrics)
Level 2 Metrics:
Associated with a narrower subset of processes.
Example:
Metric related with Delivery Performance: Total number of products delivered on time and in full based on a commit date.
Metric related with Production: Ratio Of Actual To Theoretical Cycle Time

11. Level 2 Process Types and Definitions
Planning: A process that aligns expected resources to meet expected demand requirements.
Balance aggregated demand and supply
Consider consistent planning horizon
(Generally) occur at regular, periodic intervals
Execution: A process triggered by planned or actual demand that changes the state of material goods.
Scheduling/sequencing
Transforming product
Moving product to the next process
Enable: A process that prepares, maintains, or manages information or relationships on which planning and execution processes rely

12. Level 2 Process Categories
P1: Plan Supply Chain
P2-P5: Plan SCOR Process
S1: Source Stocked Product
S3: Source Engineer-to-Order Product
S2: Source Make-to-Order Product
M1: Make-to-Stock
M2: Make-to-Order
M3: Engineer-to-Order
D1: Deliver Stocked Product
D2: Deliver Make-to-Order Product
D3: Deliver Engineer-to-Order Product
D4: Deliver Retail Product (New in Version 6.0)
SR1/DR1: Return Defective Product (Source Return/Deliver Return)
SR2: Source Return MRO Product (Maintenance, Repair and Overhaul)
DR2: Deliver Return MRO Product
SR3/DR3: Return Excess Product (Source Return/Deliver Return)
EP, ES, EM, ED, ER: Enable corresponding SCOR Processes
Level 2 Process Categories

15. Example Continued
Process Category: Source Stocked Product
Process Number: S1
Process Category Definition
The procurement, delivery, receipt and transfer of raw material items, subassemblies, product and or services.
Performance Attributes
Metric
Reliability
% Orders/lines processed complete
Responsiveness
Total Source Cycle Time to Completion
Flexibility
Time and Cost related to Expediting the Sourcing Processes of Procurement, Delivery, Receiving and Transfer.
Cost
Product Acquisition Costs
Assets
Inventory DOS
Best Practices
Features
Joint Service Agreements
Alliance and Leverage agreements
None Identified

16. Example Continued Process Element: Transfer Product
Process Element Number: S1.4
Process Element Definition
The transfer of accepted product to the appropriate stocking location within the supply chain. This includes all of the activities associated with repackaging, staging, transferring and stocking product. For service this is the transfer or application of service to the final customer or end user.
Performance Attributes
Metric
Reliability
% Product transferred damage free
% Product transferred complete
% Product transferred on-time to demand requirement
% Product transferred without transaction errors
Responsiveness
Transfer Cycle Time
Flexibility
Time and Cost Reduction related to Expediting the Transfer Process.
Cost
Transfer & Product storage costs as a % of Product Acquisition Costs
Assets
Inventory DOS
Best Practices
Features
Drive deliveries directly to stock or point-of-use in manufacturing to reduce costs and cycle time
Pay on receipt
Specify delivery location and time (to the minute)
Specify delivery sequence
Capability Transfer to Organization
None Identified

17. Product Inventory Location ES.4 WIP Inventory Location EM
Example Continued
Inputs
Plan
Source
Make
Deliver
Product Pull Signals M D
Product Inventory Location
ES.4
WIP Inventory Location EM
Finished Goods Inventory Location ED
Outputs
Plan
Source
Make
Deliver
Inventory Availability
P2.2
ES.4
M1.2, M2.2, M3.3
D1.8, D4.2
Daily Replenishment Requirements
D4.1
Loaded Cart
D4.4

20. Some Graphical Tools:
1st Step in configuring a SC: Illustrate physical layout, material flow and place Level 2 execution process categories to describe activities at each location.

21. SCOR Process Maps
2nd Step: Create the SCOR Process Maps: Place planning process categories, using dashed lines to show links with execution processes

22. Software Package for Modeling SCOR: ARIS EasySCOR
The ARIS Toolset and ARIS Easy Design are process modeling tools. The ARIS Toolset is a BPR tool, Easy Design is used for process capture.
The EasySCOR Modeler is a software package that includes the ARIS Easy Design modeling kit and the SCOR model in ARIS format.
ARIS EasySCOR consists of process models that describe the SCOR levels 1 to 3. Implementation level, level 4 is not included.

23. Process Map Example created in ARIS EasySCOR
Suppliers Supplier
Suppliers
Assemble/ Package
Distribution Centers
Geo Ports of Entry
Americas--->
Europe--->
Asia--->

24. Observations
SCOR describes processes not functions. In other words, the Model focuses on the activity involved, not the person or organizational element that performs the activity.
Implementation level, Level 4, is not described in SCOR.

25. References
SCOR 6.0 Overview Booklet
Supply-Chain Operations Reference-model (SCOR) 6.0 Introduction (in setup files)
About ARIS: