Download to read offline
The score model in supply chain
- 1. ©2012 Aite GroupLLC. Page 1 Page 1 Introduction to SCOR (Supply Chain Operations Reference) April 2012 Enrico Camerinelli Sr. Analyst
- 2. ©2012 Aite GroupLLC. Page 2 Enrico Camerinelli • Sr. Analyst at Aite Group • Current research focuses on Global Transaction Banking, Cash & Trade Management, and Supply Chain Finance • Formerly Executive Director of the Supply Chain Council • VP for Enterprise Applications at META Group • Pre-sales marketing manager at J.D. Edwards • Supply Chain and Plant Manager at Lear Corporation and Arvin Exhaust • Co-Founder of the Supply Chain Finance Council and member of the Italian delegation of UN/CEFACT
- 3. ©2012 Aite GroupLLC. Page 3 Agenda • The SCOR model • SCOR and BSP face-to-face • Linking the physical and the financial valuechains
- 4. ©2012 Aite GroupLLC. Page 4 SCC Organization - Chapters Japan Chapter Tokyo, Japan Australia/New Zealand Chapter Sydney, Australia South East Asia Chapter Singapore SCORboard European Chapter Brussels, Belgium Southern Africa Cape Town, South Africa North America Chapter Washington D.C. Brazil Chapter Greater China, Shanghai
- 5. ©2012 Aite GroupLLC. Page 5 Supply Chain Operations Reference-Model (SCOR®) Overview
- 6. ©2012 Aite GroupLLC. Page 6 SCOR - 5 distinct Management Processes Supplier Plan Customer Customer’s Customer Suppliers’ Supplier Deliver Source Make Make Deliver Make Source Deliver Internal or External Internal or External Your Company Source SCOR Model Return Return Return Return Return Return Return Source Return Deliver Best Practices Metrics Processes
- 7. ©2012 Aite GroupLLC. Page 8 Supply Chain SCOR Framework Levels Level-1 Sets Scope and Context, Geographies, Segments and Products M3 Make Engineer to Order M2 Make Build to Order M1 Make Build to Stock Level-2 Identifies Major Configurations within Geographies, Segments and Products M2.01 Schedule Production Activities M2.02 Issue Product M2.03 Produce & Test M2.04 Package M2.05 Stage Product M2.06 Release Product to Deliver Level-3 Identifies key business activities within a configuration Plan Return Deliver Make Source Plan Return Deliver Make Source
- 8. ©2012 Aite GroupLLC. Page 9 Example of SCOR utilization
- 9. ©2012 Aite GroupLLC. Page 10 SCOR Process Modeling – Mapping AS-IS material flows RM Supplier Manufacturing Company European Supplier of components Warehouse Manufacturing company that Produces against a 15-days forecast Supplies raw materials in bulks from the Far East against a monthly forecast Pulls components from France based on production volumes Ships weekly finished goods to a Distribution Warehouse based in Central Europe.
- 10. ©2012 Aite GroupLLC. Page 11 SCOR Process Modeling – Mapping AS-IS material flows RM Supplier Manufacturing Company European Supplier of components Warehouse Manufacturing company that Produces against a 15-days forecast Supplies raw materials in bulks from the Far East against a monthly forecast Pulls components from France based on production volumes Ships weekly finished goods to a Distribution Warehouse based in Central Europe. M1 S1 S2 D1 S1 D2 D1
- 11. ©2012 Aite GroupLLC. Page 12 SCOR Metrics
- 12. ©2012 Aite GroupLLC. Page 13 SCOR Best Practices
- 13. ©2012 Aite GroupLLC. Page 14 SCOR and BSP face-to-face
- 14. ©2012 Aite GroupLLC. Page 15 SCOR and BSP Plan Return Deliver Make Source BUY SHIP PAY
- 15. ©2012 Aite GroupLLC. Page 16 SCOR and BSP Plan Return Deliver Make Source BUY SHIP PAY
- 16. ©2012 Aite GroupLLC. Page 17 SCOR and BSP
- 17. ©2012 Aite GroupLLC. Page 18 SCOR-Plan Plan Return Deliver Make Source
- 18. ©2012 Aite GroupLLC. Page 19 SCOR-Source Plan Return Deliver Make Source
- 19. ©2012 Aite GroupLLC. Page 20 SCOR-Make Plan Return Deliver Make Source
- 20. ©2012 Aite GroupLLC. Page 21 SCOR-Deliver Plan Return Deliver Make Source
- 21. ©2012 Aite GroupLLC. Page 22 SCOR-Return Plan Return Deliver Make Source
- 22. ©2012 Aite GroupLLC. Page 23 Linking the physical and the financial value chains
- 23. ©2012 Aite GroupLLC. Page 24 Physical and financial value chain metrics
- 24. ©2012 Aite GroupLLC. Page 25 Physical and financial value chain metrics
- 25. ©2012 Aite GroupLLC. Page 26 End-to-end physical value chain processes Value Chain Processes Fulfill-to-service Source-to-Pay Source suppliers Select supplier and goods Negotiate sales terms Purchase order request Purchase order approval Send purchase order Order-to-Cash Receive order Manage inventory Produce goods Transport Ship goods Source-to-Pay Receive goods Offload, inspect, and store goods Receive invoice Generate and send payment Return Turn into sales order and confirm Prepare to load shipment Send invoice Order-to-Cash Receive payment advice Process payment advice Collect payment Reconcile and account
- 26. ©2012 Aite GroupLLC. Page 27 Extracting Liquidity From Value Chain Processes Applying SCF Components and Extracting Liquidity Fulfill-to-Service Source-to-Pay Order-to-Cash Source-to-Pay RETURN Pre -shipment finance Post -shipment finance Reverse factoring Buyer finance Buyer -driven payables Invoice financing/discounting Warehouse finance ECA supplier financing Confirming Distribution finance BPO Warehouse finance Warehouse finance Order-to-Cash Receivables purchase Invoice financing/discountin Purchase order commitment Purchasing card Letter of credit Guarantees Cash on delivery Forfaiting Asset -based lending Leasing Project finance Commodity finance
- 27. ©2012 Aite GroupLLC. Page 28 Aite Group: Partner, Advisor, Catalyst Aite Group (pronounced eye-tay) is an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. Enrico Camerinelli- Senior Analyst ecamerinelli@aitegroup.com +39.039.21.00.137 www.aitegroup.com