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1. SCOR-Supply Chain Operations
Reference

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)
 SCOR:
 Integrates Business Process Reengineering, Benchmarking, and Process
Measurement into a cross-functional framework.
Benchmarking Best Practices
Analysis
Process Reference
Model
Business Process
Reengineering
Quantify the
operational
performance of
similar companies
and establish
internal targets
based on “best-in-
class” results
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
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
Capture the “as-is”
state of a process
and derive the
desired “to-be”
future state
Capture the “as-is” state
of a process and derive
the desired “to-be”
future state
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

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. Supply Chain Operations Reference Model
(SCOR):Basic Management ProcessesPlan-Source-Make-Deliver-Return
Supplier’s
Supplier
Make DeliverSource Make DeliverMakeSourceDeliver SourceDeliverSource
Customer’s
Customer
Plan
Supplier
(Internal or
External)
Your Company
Customer
(Internal or
External)
Return
Return ReturnReturn
Return
Return
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. 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
Establish and
Communicate
Supply-Chain Plans
Implementation
Level (Decompose
Process Elements)
4
Not
in Scope
Return
Three Levels of Process Detail
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.
SupplyChainOp

9. Customer-FacingLevel 1
Performance Metrics
Assets
Supply Chain
Reliability
Cost
Responsiveness
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 
Internal-Facing
Flexibility
Performance Attributes

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:
o Metric related with Delivery Performance: Total number of products delivered on
time and in full based on a commit date.
o Metric related with Production: Ratio Of Actual To Theoretical Cycle Time

11. References
SCOR 6.0 Overview Booklet
http://www.isye.gatech.edu/~lfm/8851/Sources/SCOR/SCOR
%206.0%20OverviewBooklet.pdf
Supply-Chain Operations Reference-model (SCOR) 6.0
Introduction (in setup files)