The Supply Chain Operations Reference model (SCOR) is an APICS certification and framework that was established following the merger between Supply Chain Council and APICS in 2014.
The main focus of the model is to describe the business activities associated with all phases of satisfying customer demand. At 5000 feet, you would be assessing:
- Customer interactions (order entry through paid invoice),
- All physical material transactions (supplier’s supplier to customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.) and
- All market interactions (from the understanding of aggregate demand to the fulfillment of each order).
Below is a screenshot from APICS SCOR that will help illustrate the scope and the different processes you would be evaluating:
Now, to get to the good stuff, while there are many motivating factors to use this framework, these are the top 3 reasons you’d want to implement a SCOR project:
- Addressing performance issues (i.e. increasing customer complaints on delivery time or product accuracy)
- Building a technology roadmap (ERP, WMS, TMS, YMS, etc…)
- Improving Sales and Operations planning
Irrespective if you’re in complex distribution, healthcare or 3PL, you can benefit from the four P’s that SCOR addresses. Here’s a quick glance:
- Emerging practices
3D Print/Rapid prototyping, Digital Packaging on Demand, Omni-channel, Block Chain, Demand Driven MRP, etc…
2. Best practices
Risk Management Strategies, Supply Network Planning, Supply Chain Optimization (SCO), Improve S&OP process, Inventory Optimization, Network Optimization, Transportation Optimization, Lean Planning, Master Data Accuracy, Bar Coding for Returned Materials, Cross Functional Teams, etc…
3. Standard Practices
Supply Chain Risk Management (SCRM), Self-Invoicing, Consignment Inventory, Min-Max Replenishment, Production Line Sequencing, Lot Tracking, Demand Planning & Forecasting, Sales and Operations Planning (S&OP), MRP, Business Rule Review, Inventory Management, Web-based Return Material Authorization (RMA), Performance Management, Project Management, Perfect Pick Putaway, Logistics & Warehouse Planning, Purchase Order Management, Cross-Docking, etc…
Define an integrated view of your SC resources based on:
Whether you’re looking to improve an existing process or build your supply chain strategy from scratch, just remember that the framework is adaptable to your journey.
I hope this brings some value to you or your organization. I definitely recommend you look into the SCOR certification if this peaked your curiosity.