This document discusses using the Supply Chain Operations Reference (SCOR) model as a reference for designing supply chain management capabilities. It outlines mapping SCOR processes and attributes to a capability model. An example capability for demand fulfillment is presented, showing how it is based on SCOR delivery processes and uses patterns to operationalize process variants according to different contexts. The capability design process applies patterns after selecting a process, variants, goals and contexts. SCOR provides specifications for capability processes while patterns allow for contextualization.

1. CoBI Workshop, 17th IEEE Conference on Business Informatics
13th - 16th July 2015
A REFERENCE MODEL BASED
DESIGN OF SUPPLY CHAIN
MANAGEMENT CAPABILITIES
Jānis Grabis
Information Technology
Institute, Riga Technical
University, Kalku 1, Riga,
Latvia
grabis@rtu.lv
Solvita Bērziša
Information Technology
Institute, Riga Technical
University, Kalku 1, Riga,
Latvia
solvita.berzisa@rtu.lv

2. Outline
• Problem area and objective
• Supply chain design and capabilities
• SCOR to capabilities mapping
• Capability design process
• Example
• Conclusion
2

3. Problem Area
• Supply chain design
• SCOR model
• Transition from supply chain domain to
enterprise applications domain
3

4. Objective
• SCOR model is a useful source of
information for designing capabilities
• Objective is to identify commonalities
among the reference model and
capability design and to outline the
reference model based capability design
4

5. Supply Chain Design
• Selection of supply chain units, establishing
links among the units and configuration of
supply chain processes
– E.g., Huang et al. (2005)
• SCOR model defines high level processes
according to the source, make, deliver and
plan template
• Multi-objective design problem
– E.g., Melo et al. (2009)
• Global operations
– E.g., He et al. (2014)
5

6. Supply Chain Capabilities
• Capabilities describe abilities possessed
by an organization
– This ability should be achieved under
specified performance requirements and
operating conditions
• Supply chain capabilities
– Functional capabilities
– Service capabilities
– Cross-sectional capabilities
6

7. Capability Modeling
7
class Capability
Capability Goal IndicatorContext
Pattern Process Process Variant
* 1..*
1..*0..*
1..* 1
0..*
1..*
0..*
0..*
1..* 0..*
1
0..*
1..*1..*
Contex represents
varying supply chain
execution circumstances
Process variants
represent supply chain
execution solutions

8. Supply Chain Reference Model
SCOR defines supply chain processes in a
uniform manner
8
class Asdenca2
Process Performance
Attribute
Metric
Best Practice Feature
Input
Output
1..* 0..*
1..* 1..* 1..* 0..*1..* 0..*
1..*
0..*
0..*
1..*

9. Mapping
9
SCOR
Level 1 process
Level 3 process
Best practice
Performance
attribute
Metric
Capability
Process
Process variant
Pattern
Goal
Indicator

10. Capability Design Process
Apply patterns to operationalize the process variants
Search patterns
Specify capability indicators
Select process variants (Level 3)
Select a process (Level 1) supporting capability delivery
Context modeling
Name capability and define goals
10

11. Example
• Demand fulfillment capability
– Based on the delivery process
– Uses Deliver Stocked Product (D1) and
Deliver Make-to-Order (D2) process variants
– Pattern repository contains several capability
delivery patterns
11

12. Demand Fulfillment Capability
12
class Example
Demand fulfillment :Capability
To improve reliability :
Goal
To increase
responsiveness :Goal
To reduce costs :Goal
Customer location :
Context
Destination
conditions :Context
Inquiry source :
Context
Customer
creditworthiness :
Context
Deliver :Process Deliver Stocked Product :
Process Variant
Deliver Make-to-Order
Product :Process Variant
Apply patterns to operationalize the process variants
Search patterns
Specify capability indicators
Select process variants (Level 3)
Select a process (Level 1) supporting capability delivery
Context modeling
Name capability and define goals

13. Patterns
Name Description Process fragment
Single point of
contact
Problem: Customer requests received
through various channels get lost
Context: Customer profile, Inquiry source
Solution: All request are routed for
processing in a single view
Tailor offering Problem: Customers should not be
offered products, which cannot be
delivered
Context: Customer location, Destination,
Product type
Solution: Filter products according the
context values
Extra insurance Problem: Some shipments are dangerous
and require extra precautionary measures
Context: Customer location={R1- R5},
Destination conditions={Normal,
Hazardous}
Solution: Insure high risk shipments
13
Route
request
Select
products
Create
quotation
Display
products
Multi-channel
request is
received
Filter list
Take extra
insurance

14. Deliver Stocked Products Process
Variant
14
D1.1 Process inquiry & Quote
D1.1 Process Inquiry
& Quote
D1.2 Receive, Enter
& Validate Order
D1.3 Reserve
Inventory &
Determine Delivery
Date
D1.4 Consolidate
Orders
D1.5 Plan & Build
Loads
D1.6 Route
Shipments
D1.7 Select Carriers
& Rate Shipments
D1.8 Receive
product at
warehouse
D1.9 Pick Product
D1.10 Load Vehicle
Generate Ship docs,
Verify Credit & Ship
Product
D1.11 Receive &
Verify Product at
Customer Site
D1.12 Install
Product
D1.13 Invoice
Ctx: Customer location
Inquiry source
Ctx: Destination
conditions
Ctx: Customer creditworthiness
Customer inquiry
received
Filter
product list
CTx: Customer location
Display
products
Select
products
Create
quote
Route
request
CTx: Request source

15. Conclusion
• SCOR model provide building block for
developing capabilities
• Capabilities allow for contextualiation of
supply chain processes
• SCOR model provides Level 1-3
specifications while patterns are used for
Level 4
15