The document provides an introduction to the Supply Chain Operations Reference (SCOR) model. It describes the five core SCOR processes - Plan, Source, Make, Deliver, and Return. Plan involves balancing resources with requirements. Source includes procurement activities. Make covers production. Deliver encompasses order fulfillment and distribution. Return manages product returns. The document also outlines three primary business processes supported by SCOR: sales and operations planning (S&OP), order fulfillment, and returns management (RMA). It provides high-level descriptions of each as well as their advantages and implementation requirements.

1. Introduction to SCOR
Supply Chain Operations Reference
Model

2. SCOR addresses business operations, from the
supplier’s supplier to the customer’s customer

3. Five SCOR Processes
Plan
•Balance resources with requirements and establish/communicate plans for the whole business, including Return, and execution processes of
Source, Make and Deliver
•Management of business rules, supple chain performance, data collection, inventory, capital assets, transportation, planning configuration, and
regulatory requirements and compliance
•Align the production plan with the financial plan
Source
• Schedule deliveries; receive, verify and transfer product; and authorize supplier payments
• Manage business rules, assess supplier performance, and maintain data
• Manage inventory, capital assets, incoming product supplier network, import/export requirements, and supplier agreements
Make
• Schedule production activities, issue product, produce and test, package, stage product, and release product for delivery
• Manage rules, performance, data, in-process product (WIP), equipment and facilities, transportation, production network, and
regulatory compliance for production.
Deliver
•All order management steps from processing customer inquiries and quotes to routing shipments and selecting carriers
•Warehouse management from receiving and picking product to load and ship product
•Receive and verify product at customer site and install, if necessary
•Invoice customer
•Manage Deliver business rules, performance, information, finished goods inventories, capital assets, transportation, product life cycle, and import/export
requirements
Return
• All “Return Defective Product” steps from Source and Deliver
• All Return “Maintenance, Repair and Overhaul” steps from Source and Deliver
• All Return “Excess Product” steps from Source and Deliver
• Manage Return business rules, performance, data collection, return inventory, capital assets, transportation, network configuration,
and regulatory requirements and compliance

4. The 5 elements of SCOR are supported by
3 primary business processes
• Monthly business review process that
aligns supply availability with demand
planning and revenue reconciliation
Sales and Operations
Planning (S&OP;
Plan Process)
• From customer inquiry to customer invoice
Order Fulfillment
(Source, Make,
Deliver Processes)
• From RMA authorization request to
credit/replacement
• May include debug, data analysis, QA
RMA
(Return Process)

5. Sales and Operations Planning (S&OP)

6. Sales and Operations Planning (S&OP)
Components of integrated planning
Roadmap Alignment
Sales Forecasting
Aggregate Demand
Supply Response
Supply/Demand
Reconciliation
Executive
Approval/Financials
Updated/Plan Released to
Production
Monthly S&OP
Planning Cycle

7. Sales and Operations Planning (S&OP)
Example Process
S&OP Process Flow: Key Steps and Functional Ownership
ManagementFinance
Operations
Planning
Customer
Interface
Capture Ending
Inventory by
Product for
Current Month
Aggregate
Demand
Forecast units
and ASP by
Product,
Customer Class
Code, Month*
S&M Mgmt
approves demand
forecast?
Sales & Marketing
Demand Forecast
Review Meeting
Review
Submitted
Demand Forecast
in Supply Plan
Input Cubes
Demand Units by Product to Supply < Yes
Total Supply
Response Units /
CPP by Product,
Month* (Qtrly for
final year)
No
Reconcile
Demand
Forecast, Supply
Response, Mgmt
input in
Execution Plan
Provide Strategic
Directive for
Execution Plan
Review and Modify
CPP by Product,
Month based on
Execution Plan
Execution
Plan
To Supply
No
S&M /
OP Mgmt approves
execution plan
proposal?
Financial
Preparation for
Execution Plan
Review with Mgmt
Yes
Execution Plan
Review with
Management
Management
approves
execution plan
proposal?
No
Financial
Analysis /
Reporting Based
on Approved
Execution Plan
Yes
Supply To
Execution
< Yes
CPP
to
Execution
1st
Thursday 2nd
TuesdayLast Thursday
Key Calendar Dates
Execution Plan Review with ManagementDemand > Supply Supply Response & Demand > Execution
Operations
Planning Supply
Response Review
Meeting
Ops Mgmt
approves supply
response?
No
RoadMapAlignment
Validate
CPP
Release to
Production

8. Sales and Operations Planning (S&OP)
Advantages
•Establishes a predicable cadence to all business planning and execution activities
•Ensures roadmap and volume changes are analyzed in terms of capacity and capital
requirements
•Gives monthly revenue performance to plan projection with respect to the strategic
business plan
•Inhibits critical cost and ASP information from being silo’d, eliminates dependence on
tribal knowledge in the business planning process
•Greatly improves communication between S&M, Mfg, Ops, and Finance- not to mention
management
•Easily scales as the business grows!
Advantages
•Senior management buy in and advocacy (i.e. This is happening, the train is leaving the
station, get on board or leave…)
•Discipline from senior management to attend the key meetings, as required by the
S&OP calendar- when possible; proxies required when not
•Some training required for participants
•Possibly some software expenditures (Cognos, ProClarity, or other…) at some point, but
for now a spreadsheet will work fine
Implementation
Requirements

9. Order Fulfillment & RMA Process
Documentation
• Inquiry to invoice specification
• Identify activities, stakeholders, and data support
systems
• Establish metrics for measuring operational
effectiveness
• Order fulfillment lead time
• Cash to cash cycle time
• On time delivery percentage
• Inventory turns
Order
Fulfillment
Process
• Request to credit/replacement specification
• Identify activities, stakeholders, and data support
systems
• Establish metrics for measuring operational
effectiveness
• Trending RMA % of units shipped
• MTTF/MTTR
RMA
Process