The Supply Chain Council (SCC) is a global non-profit organization whose framework, benchmarking tools, and improvement methodology support member organizations in making rapid and dramatic improvements in supply chain performance.
The Council’s Supply Chain Operations Reference (or SCOR) model provides a unique framework that links processes, performance metrics, best practices, and supply chain professionals.
The framework promotes communication and coordination and boosts the efficacy of supply chain management and technology. Inbound and outbound freight handling providers like Costa are increasingly adopting this model in an effort to find standardized approaches to capturing and reporting information.
How Does SCOR Drive Value?
The SCOR model helps define structure, refine strategy, and measure performance. A company or organization’s yearly strategic priorities are shown in SCOR’s vertical and horizontal process integration. Businesses that have applied SCOR to address their supply chain problem solving, process redesign and improvement, or business process engineering have demonstrated that the model is effective at aligning an organization’s portfolio of improvement projects with strategic objectives and goals.
Five Supply Chain Challenges that SCOR Helps Address
Whether markets are contracting or growing, economic cycles always compel organizations and businesses to fully examine their supply chains, re-evaluate their assumptions, extinguish inefficiencies, and plan for growth. This type of analysis and restructuring is a current requirement for effective supply chain management. Here are five long-standing supply chain management challenges that SCOR solves:
- Excellent Customer Service: The SCOR model provides a framework for understanding and measuring current supply chain performance and conditions, as well as creates a foundation for improvement. It can aid supply chain managers assess cost/performance tradeoffs, develop approaches for fulfilling new customer expectations, and respond to both domestic and global market growth.
- Expense Control: SCOR metrics provides organizations a basis to measure their degree of success in achieving its desired objectives. These metrics are designed to be applied in conjunction with supply chain performance attributes, simplifying the comparison between various supply chains and supply chain strategies.
- Planning and Risk Management: Businesses and organizations in all industries have discovered that using SCOR as a foundation for planning and risk management results in faster implementation, more comprehensive detection of potential risks, and easier coordination with customers, suppliers, and other stakeholders. This model helps users build rules and strategies, coordinate responses, assign responsibilities, and monitor ongoing conditions.
- Partner/Supplier Relationship Management: The SCOR model provides a common communication channel for supply chain analysis and classification. Using the same framework and language makes it easier for teams to coordinate with each other, hastens benchmarking efforts, and improves the assessment of best practices.
- Talent: Some SCC members have used the SCOR framework to organize the capabilities of the global supply chain organizations. The SCOR skills management framework complements the metrics, practice, and process reference components with baseline aptitudes, experience, skills, and training.
The SCOR model involves much more than individual improvement projects. The ultimate goal of any organization that deploys this framework is to establish a superior supply chain that is integrated with the general organizational strategy. Supported by conventional supply chain definitions, metrics, and strategies, the integrated supply chain goes beyond the walls of the organization that owns the customer order.