1. Introduction to SCOR (Supply Chain Operations Reference)
April 2012
Enrico Camerinelli
Sr. Analyst

2. Enrico Camerinelli Sr. Analyst at Aite Group
Current research focuses on Global Transaction Banking, Cash & Trade Management, and Supply Chain Finance
Formerly Executive Director of the Supply Chain Council
VP for Enterprise Applications at META Group
Pre-sales marketing manager at J.D. Edwards
Supply Chain and Plant Manager at Lear Corporation and Arvin Exhaust
Co-Founder of the Supply Chain Finance Council and member of the Italian delegation of UN/CEFACT
Enrico’s note: I will go very fast on this one.

3. Agenda The SCOR model SCOR and BSP face-to-face
Linking the physical and the financial valuechains

4. SCC Organization - Chapters
SCORboard
European Chapter Brussels, Belgium
Greater China,
Shanghai
North America Chapter Washington D.C.
Japan Chapter Tokyo, Japan
South East Asia Chapter Singapore
Brazil Chapter
Southern Africa Cape Town, South Africa
Australia/New Zealand Chapter Sydney, Australia

5. Supply Chain Operations Reference-Model (SCOR®) Overview

6. SCOR - 5 distinct Management Processes
Plan
Source
Make
Deliver
Deliver
Source
Make
Deliver
Source
Make
Deliver
Source
Return
Return
Return
Return
Return
Return
Return
Return
Suppliers’ Supplier
Supplier
Your Company
Customer
Customer’s Customer
Internal or External
Internal or External
SCOR Model
Processes
Metrics
Best Practices

7. SCOR is a hierarchical model

8. SCOR Framework Levels Plan Return Deliver Make Source Plan Return
Supply Chain
Plan
Return
Deliver
Make
Source
Plan
Return
Deliver
Make
Source
Level-1 Sets Scope and Context, Geographies, Segments and Products
M3 Make Engineer to Order
M2 Make Build to Order
M1 Make Build to Stock
Level-2 Identifies Major Configurations within Geographies, Segments and Products
Each framework has three levels: Level 1 are the ‘gross level’ descriptions of major processes, corresponding roughly, by example, to the porter model ‘value chain’ steps. These are used primarily for measurement (categories of balanced scorecard drilldown), scoping of programs, and segmentation of businesses into geographies, segments, products.
Level 2 are the ‘configuration’ level elements, used primarily for identify sub-segments of Level-1 – mostly used for scoping (types of supply-chains) and for introducing standard configurations which are commonly managed and measured e.g. Build-to-Order vs Build-to-Stock
Level 3 are the activities within a supply-chain used for designing and managing specific sequences within a Level2 configuration.
M2.01 Schedule Production Activities
M2.02 Issue Product
M2.03 Produce & Test
M2.04 Package
M2.05 Stage Product
M2.06 Release Product to Deliver
Level-3 Identifies key business activities within a configuration

9. Example of SCOR utilization

10. SCOR Process Modeling – Mapping AS-IS material flows
Manufacturing company that
Produces against a 15-days forecast
Supplies raw materials in bulks from the Far East against a monthly forecast
Manufacturing
Company
RM Supplier
European Supplier
of components
Warehouse
Ships weekly finished goods to a Distribution Warehouse based in Central Europe.
Pulls components from France based on production volumes

11. SCOR Process Modeling – Mapping AS-IS material flows
Manufacturing company that
Produces against a 15-days forecast
Supplies raw materials in bulks from the Far East against a monthly forecast M1
Manufacturing
Company S1 D2 D1
RM Supplier S1 S2 D1
European Supplier
of components
Warehouse
Ships weekly finished goods to a Distribution Warehouse based in Central Europe.
Pulls components from France based on production volumes

12. SCOR Metrics

13. SCOR Best Practices

14. SCOR and BSP face-to-face

15. SCOR and BSP
Plan
Source
Make
Deliver
Return
BUY
SHIP
PAY

16. SCOR and BSP
Plan
Source
Make
Deliver
Return
BUY
SHIP
PAY

17. SCOR and BSP

18. SCOR-Plan
Plan
Source
Make
Deliver
Return

19. SCOR-Source
Plan
Source
Make
Deliver
Return

20. SCOR-Make
Plan
Source
Make
Deliver
Return

21. SCOR-Deliver
Plan
Source
Make
Deliver
Return

22. SCOR-Return
Plan
Source
Make
Deliver
Return

23. Linking the physical and the financial value chains

24. Physical and financial value chain metrics

25. Physical and financial value chain metrics

26. End-to-end physical value chain processes

27. Extracting Liquidity From Value Chain Processes
Applying SCF Components and Extracting Liquidity
Fulfill - to
Service
Source
Pay
Order
Cash
RETURN
Pre
shipment
finance
Post
Reverse
factoring
Buyer finance
Buyer
driven
payables
Invoice
financing/discounting
Warehouse
ECA supplier
financing
Confirming
Distribution
BPO
Receivables
purchase
financing/discountin
Purchase
order
commitment
Purchasing
card
Letter of credit
Guarantees
Cash on
delivery
Forfaiting
Asset
based
lending
Leasing
Project finance
Commodity

28. Aite Group: Partner, Advisor, Catalyst
Aite Group (pronounced eye-tay) is an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. Enrico Camerinelli- Senior Analyst