Accompanying presentation for the free SCE Ltd. webinar highlighting a best-practice application of SCOR®, and summarizing the key steps to effectively utilize SCOR® in your company’s supply chain improvement initiatives. We strongly urge attending the webinar (http://www.scelimited.com/education/free-scor-best-practice-case-study/) in order to get the most out of the presentation. It is appropriate for anyone who is thinking about using the SCOR® framework, or those who are doing so and want exposure to additional expertise. Topics covered: +Principles of SCOR Application +Metrics, Performance, and the Business Case +Process and System – Work and Information +Organizational Learning Plan +Next Steps

1. Using SCOR®
A Best Practice Case Study of a Typical SCOR® Project

2. Objective
§ This webinar highlights a best-practice application of
SCOR®, and summarizes the key steps to effectively utilize
SCOR® in your company’s supply chain improvement
initiative.
§ It is appropriate for anyone who is thinking about using the
SCOR® framework, or those that are doing so and want
exposure to additional expertise.
Copyright SCE Limited 20132

3. Agenda
1. Principles of SCOR Application
2. Metrics, Performance, and the
Business Case
3. Process and System – Work and
Information
4. Organizational Learning Plan
and Next Steps
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4. Principles of
SCOR®
Application
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§ Roadmap
§ Organization
§ Supply Chain Definition

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Roadmap
Phase FOCUS Major Deliverables Challenge
0
BUILD
ORGANIZATION
SUPPORT
• Sponsor and Key
Stakeholder Support
• Education
Finding the Tipping Point
for Change
1 DEFINE THE
PROJECT
• Business Context Summary
• Supply Chain Definition
• Project Scope and Charter
Planning and Organizing a
Supply Chain Excellence
Initiative
2
ANALYZE
PERFORMANCE
• Scorecard
• Defect Analysis
• Process Analysis
Defining the Metric and
Process Performance Gap
3
DEVELOP THE
PROJECT
PORTFOLIO
• Project Portfolio
• Implementation Priority
Developing the Project List
and Priority for
Implementation
4 IMPLEMENT A
PROJECT
• Development, Pilot, and
Implementation of a
Portfolio Project
• Results
Low Risk Implementation
of a Project that
Demonstrates Results

6. Organization
§ The Active Executive Sponsor(s)
§ Resource Provider
§ Buck Stops Here
§ Steering Team
§ Review and Approve
Recommendations
§ Champion Implementation
Projects
§ The Project Leader
§ Manage to Schedule
§ Escalate Issues
§ Design Team
§ Analyze and Recommend
§ Commit the Time
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7. Supply Chain Definition
Retail
Markets
Distributor
Markets
Direct-to-
Consumer
Markets
OEM and
Key
Accounts
Government
Home
Delivery
International
Food Products X X X
Technology
Products
X X Developing X X X
Durable
Products
X X X
Fowlers North
America
Customer/Market Channels
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8. Metrics,
Performance,
and the
Business Case
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§ Scorecard
§ Portfolio
§ Priority
§ Benefits

9. 9
Scorecard
Technology Products Group Benchmark Data
2-May-11
Performance Attribute
or Category
Level 1 Performance
Metrics
2010 Act
Parity
50th
Percentile
Advantage
70th
Percentile
Superior
90th
Percentile
Parity Gap
Competitive
Gap
Competitive
Gap
Analysis
Source
External
Supply Chain Delivery
Reliability
Perfect Order
Fulfillment
30.2% 74.0% 81.0% 88.0% -43.8% -57.8%
$6,750,000
SCORmark
Supply Chain
Responsiveness
Order Fulfillment Cycle
Time
11.0 10.0 6.50 3.0 -1.0 -4.5 SCORmark
Supply Chain Flexibility
Upside Supply Chain
Flexibility
91.5 60 45.0 29 -31.5 -46.5 SCORmark
Internal
Supply Chain Cost
Cost of Goods 63.6% 54.7% 44.3% 26.0% -8.9% NA $40,050,000 Hoovers
Supply Chain
Management Cost
12.8% 9.5% 6.8% 3.9% -3.3% -3.3% $14,850,000 SCORmark
Supply Chain Asset
Management Efficiency
Inventory Days of
Supply
60.5 20.4 8.9 0.0 -40.1 -40.1 $31,442,000 Hoovers

10. Portfolio
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Project
Number
Project Phrase Project Description Revenue ($)
Perfect Order
Fulfillment (%)
Order
Fulfillment
Cycle Time
(days)
Upside
Supply Chain
Flexibility
(days)
Total Supply
Chain
Management
Cost ($)
COGS ($) Inventory ($)
$450,000,000 30.2% 11.0 91.5 $57,600,000 $286,200,000 $47,437,000
1
Improve
Demand
Management
and Forecasting
This project will improve poorly
defined practices, underutilized
modeling techniques, and
untrained personnel.
8.0% $1,660,000
Baseline
11
Establish
Formal Return
Management
This project will define and
implement a reverse logistics
processes from goods
movement to policy to the
authorization process.
$1,350,000 $660,000
12
Eliminate Poor
Inventory
Control
Practices
This project will focus on defects
that relate to inventory record
accuracy, shrinkage, and cycle
counting.
2.5% $1,660,000
$4,500,000 64.5% 1.0 35.0 $14,715,540 $16,182,000 $16,900,000
$454,500,000 94.7% 10.0 56.5 $42,884,460 $270,018,000 $30,537,000
Benefit
Projected Performance Level

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Priority

12. Benefits
§ Average OI improvement of 3% to sales (high 4.5% - low 1.5%)
§ Typical Inventory Turn improvements of 20%
§ 30% Faster System Implementations with 30% more Functionality
§ Continuous Improvement Portfolios Refreshed at a Value of 0.5%
§ Mitigation of costs associated with risk management
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ROI
Fowlers Project Portfolio
FY 1 FY 2 FY 3
100% 25% 40% 100%
1 (250)$ 75$ 120$ 300$ 1.98
2 -$ -$ -$ -$ -
3 (6,500)$ 625$ 1,000$ 2,500$ 0.63
4 -$ -$ -$ -$ -
5 (1,800)$ 1,400$ 2,240$ 5,600$ 5.13
6 (1,100)$ 625$ 1,000$ 2,500$ 3.75
7 (250)$ 1,250$ 2,000$ 5,000$ 33.00
8 (2,200)$ 2,025$ 3,240$ 8,100$ 6.08
9 (2,250)$ 4,375$ 7,000$ 17,500$ 12.83
10 -$ -$ -$ -$ -
11 (750)$ 775$ 1,240$ 3,100$ 6.82
12 (125)$ 75$ 120$ 300$ 3.96
(15,225)$ 11,225$ 17,960$ 44,900$
Improve Supplier Flexibility
Implement Formal Product Life Cycle
Management Process
Engineer an Integrated Tactical Planning
Process
Eliminate Poor Inventory Control Practices
Implement Sales and Operations Planning
Improve Efficiency and Effectiveness of the
Physical Supply Chain Network
Tighten Up Order Management Discipline
Establish Formal Return Management
Improve Demand Management and
Forecasting
Optimize Supply Management Practices
Improve Information Technology
Effectiveness
Improve Data Integrity
Ist Year
Cost
Investment
3 Year Benefit
Gross EVA Benefit ($ in 000's)
3 YR ROI
% of Annualized Benefit Achieved
Grand Total

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Value

15. Process and
System – Work
and
Information
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§ Staple Yourself to an
Order
§ SCOR® Level 3 Process
Analysis
§ SCOR® Level 4 Process
Development

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SCOR®

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Hierarchy

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Worksheet
Interviewees
Accountable
Function
Level 4 Step Description System Module Responsible Event Time
1
Enter the
description of
each of the
process steps;
often referred to
as Level 4
process steps
Enter the
System Module
and/or
Transaction
Enter the title(s)
of those doing
the work
This is an effort
of the amount of
time (often
calculated in
minutes) and is
normalized to
one of four
transactions, i.e.
purchase order,
work order,
sales order,
return
authorization, or
forecast
2
0
Initials
Relative
Weight
Interviewee's
Initial
This compares
the relative
impact to the
rest of the
disconnects in
the list
Enter the primary transactional
input(s) to this process
Enter the SCOR Level 3 Process
element ID and description, i.e.,
M1.1 Schedule Production
Activities
Enter the primary transactional
output(s) to this process
Process Steps
(>4 and <11)
Total Event Time for Process Steps
Enter the interviewees from the interview planning worksheet.
Enter the title of the ultimate role accountable to the performance of this SCOR Level 3
process.
Primary Input(s) SCOR Element Primary Output(s)
Disconnects
causing rework
and/or extended
wait time
Disconnect Description
Describe major disconnects that cause process
steps to be reworked and/or add to process wait
time (delay)
Business Rules
Enter the business rules, both formal and informal, that directly or indirectly influence
process performance

19. Process Analysis
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Mx.1
Schedule
Production
Mx.2
Issue Prod
Dx.1
Process Inquiry &
Quote
Dx.2
Receive, Enter, &
Validate Order
Dx.3
Reserve
(Resources)
Inventory and
Determine Delivery
Date
Dx.4
Consolidate
Orders
Dx.5
Build Loads
Dx.6
Route Shi
Dx.8
Receive Product
from Source or
Make
P1
Plan Supply Chain
P3
Plan Make
P4
Plan Deliver

20. SCOR® Level 4
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P3.1.1
Complete
month end
validation
P1.1.1
Analyze
forecast error
and BIAS
performance
P1.1.2
Generate and
validate
statistical
forecast
P1.1.4
Conduct
Demand
Review and
Approve Plan
P1.1.5
Update
launch and
replenishment
NPD plans
and forecasts
P1.1.7
Update
promotional
event
calendar
P1.1.8
Update
customer
account plans
P1.1.6
Identify
demand
shaping
opportunities
P1.1.3
Conduct Pre-
Demand
Detailed
Review
FINANCE
1
DEMAND
PLANNING
2
DEMAND
PLANNING
3
DEMAND
PLANNING
4
SALES &
MARKETING
5
SALES
15
MARKETING
13
MARKETING
10
SUPPLY
PLANNING
11
P1.2.3
Update
Forecast
SUPPLY
PLANNING
6
SCOR® P1.1
S&OP: Demand Plan

21. Organizational
Learning Plan
and Next Steps
Copyright SCE Limited 201321
§ Organizational Learning
§ Individual Development
§ Next Steps

22. Organizational Learning
1. Executive Brief
2. Using SCOR® Workshop – On Line
3. Using SCOR® Workshop – On Site
4. Supply Chain Excellence Project – Pilot
1. Broad Scope Strategy
2. Narrow Scope Kaizen Event
5. Supply Chain Excellence Continuous Improvement
Copyright SCE Limited 201322

23. Individual Development
1. SCOR-P Certification – the Supply Chain Council
2. SCOR-S Certification – the Supply Chain Council
3. SCOR® Coach – SCE Limited
Copyright SCE Limited 201323

24. Next Steps
§ Identify a sponsor
§ Hold an Executive Brief
§ Conduct an on-site Using SCOR® Workshop
§ Evaluate individual learning requirements
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25. Case Study
25

27. Copyright SCE Limited 201327
Thank You!
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