Planning And Risk Management
Supply chains must periodically be assessed and redesigned in response to market changes, including new product launches, global sourcing, new acquisitions, credit availability, the need to protect intellectual property, and the ability to maintain asset and shipment security. In addition, supply chain risks must be identified and quantified.
Organizations in all sectors-commercial, military, and NGOs-have found that using SCOR as a planning and risk management foundation leads to faster implementation, more comprehensive identification of potential risks, and easier coordination with customers, suppliers, and other stakeholders. SCOR helps users establish rules and strategies, assign responsibilities, coordinate responses, and monitor current condition.
Supplier /Partner Relationship Management
Different organizations, even different departments within the same organization, can have different methods for measuring and communicating performance expectations and results. Trust begins when managers let go of internal biases and make a conscious choice to follow mutually agreed upon standards in order to better understand current performance and opportunities for improvement.
SCOR provides a common language for supply chain classification and analysis. Using a common language and framework makes it easier for teams to communicate, speeds benchmarking efforts, and enhances the evaluation of best practices.
Talent
As experienced supply chain managers retire-and organizations scale up to meet growing demand in developing markets-talent acquisition, training, and development are becoming increasingly important. Supply chain leaders need a thorough understanding of the key competencies required for supply chain management roles, specific job qualifications, methods for developing future talent and leaders, and the ability to efficiently source specific skills.
Some SCC members have organized the capabilities of their global supply chain organizations around the SCOR framework. The SCOR skills management framework complements process reference, metrics, reference and practice reference components with baseline skills, experience, aptitudes, and training
Achieving: Supply Chain Superiority
SCOR is about much more than individual improvement projects. The ultimate objective of any organization that deploys the SCOR model is to build a superior supply chain that is integrated with the overall organizational strategy. Aided by common supply chain definitions, metrics, and strategies, the integrated supply chain extends between and beyond the walls of the organization that owns the customer order.
You know that you can’t manage what measure. Well, it’s also impossible to make effective decisions if every department in your organization measures performance differently. Organizations that are not integrated-where planning, sourcing, manufacturing, and logistics all have their own agendas and their own performance metrics that do not align with overall business goals-cannot respond effectively to market changes and opportunities. An integrated operating model does not happen spontaneously. The natural tendency is toward expediency and whatever set of metrics makes each department or functional area look best.
SCC research has found a high correlation between organizations that implement an integrated, end-to-end supply chain operating model enabled by the SCOR model and market outperformance in key financial measures. These include profit margins, inventory turns, asset turnover, and working capital. In addition, such organizations benefit from a much lower risk of supply chain disruption.
SCC research has found a high correlation between organizations that implement an integrated, end-to-end supply chain operating model enabled by in key financial measures. These include profit margins, inventory turns, asset turnover, and working capital. In addition, such organizations benefit from a much lower risk of supply chain disruption.
How SCOR Work:
It’s All About Relationships
The SCOR model provides a framework that links business processes, metrics, best practices, and technology into a unified structure. It is hierarchical in nature, interactive, and interlinked. The SCOR model supports supply chain improvement by aiding the capture of an “as-is” current state from which the desired “to-be” future state can be derived.
By speeding data collection, SCOR can make it much less time consuming for managers to find answers to basic questions about how a supply chain is performing, drill down to identity contributing factors, and quickly initiate corrective contrive actions. SCOR facilitates supply chain integration by providing common process and metric definitions applicable across multiple organizations. For each includes parent and/or child processes, performance metrics, best practices, and the skills required for the employees performing the process.
For example, consider Perfect Order Fulfillment. This metric provides a good indication of how well every facet of a supply chain-planning, sourcing, manufacturing, and delivery-are tuned and coordinated to meet customer demand. Achieving Perfect Order Fulfillment of 100% is difficult, if not impossible, and may be prohibitively expensive because is has so many contributing factors. These include: on time to customer request, complete order shipment, undamaged, and the correct paperwork.
The SCOR model contains the Perfect Order Fulfillment metric definition, calculation methods, and discuss=ion point. The SCOR model lists the processes that influence the performance of the level 1 metric and the associated level 2 metrics to analyze in order to identify to the root causes of any issue. By examining level 2 metrics, managers can then determine the 3 processes and metrics to investigate.