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Home » Articles » Leveraging The Supply Chain Operations Reference Model

by Robert Allen Leave a Comment

Leveraging The Supply Chain Operations Reference Model

Leveraging The Supply Chain Operations Reference Model

In recent articles we covered value stream concepts and characterized the value stream in the context of supply chain major sub-processes. We summarized the manufacturing value stream according to the following process blocks:

The SCOR model can be leveraged to assess and improve supply chains / value streams, directly leading to improved operational performance.

The Supply Chain Operations Reference (SCOR) model describes the business activities associated with all phases involved with satisfying a customer’s demand. SCOR is the only comprehensive, universally accepted and open-access supply chain standard. It has been used by thousands of public and private organizations around the world. 

A value stream map is useful to illustrate the critical functions of this model as follows.  This simple VSM illustrates a company that outsources their manufacturing to a contract manufacturer (CM).

Now, let’s go into the SCOR model and see what it reveals about the “Fulfill” subprocess:

 

Many of these process steps may be performed by the 3PL in a make-to-stock, 3PL warehouse model.  In this case, the company would typically monitor product shipments (F2.10: Ship Product)

Although it’s common to measure product shipped, the fulfillment process ends with the customer.  The corresponding fulfillment process KPI is perfect order fulfillment expressed as a percentage (with the goal 100%).

Some other takeaways include:

  • Any level 2 metric can be stratified and reported individually. For example, “‘deliver performance to customer commit date”. How often is the company late to the customer, and by how many days?
  • An advantage of the reference model, in addition to a source of KPIs, and advantage of the reference model is speaking the same language of an industry standard.
  • Some language is not used…notably backlog to represent pending orders, for example

This article provides one small example. There are many important key performance indicators in the reference model, the list is quite extensive and granular but useful. The SCOR digital standard is open to all professionals online. Learn more and interact with the full model at scor.ascm.org.

 

Filed Under: Articles, Product Development and Process Improvement

About Robert Allen

Robert Allen has over 25 years of professional experience in the areas of product development, process improvement and project management. Rob was a key contributor to numerous deployments of lean sigma and project management organizations, most notably with Honeywell and TE Connectivity. Included in Rob’s experience are multiple certifications and over 25 years of practice in the development, teaching, execution, and leadership of product lifecycle, lean product development, DFSS, lean six sigma, project management, systems engineering and supply chain.

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Articles by Rob Allen
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