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Scor v14 0 Framework Introduction

Scor v14 0 Framework Introduction

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0% found this document useful (0 votes)
117 views18 pages

Scor v14 0 Framework Introduction

Scor v14 0 Framework Introduction

Uploaded by

candelario Lujan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ASCM

Supply Chain Operations Reference


Model

SCOR Digital
Standard
Visit scor.ascm.org for more information regarding the SCOR framework. The SCOR Digital
Standard is available to all ASCM members on the ASCM website at ascm.org.

©2022 ASCM

8430 W. Bryn Mawr Ave.


Suite 1000
Chicago, IL 60631-3439
USA
Phone: 800-444-2742 or 773-867-1777
Fax: 773-639-3000

No portion of this document may be reproduced under any circumstances. SCOR is a registered
trademark of ASCM.

© ASCM 2022. All rights reserved. SCOR Version 14.0


© ASCM 2022. All rights reserved. SCOR Version 14.0
Introduction

© ASCM 2022. All rights reserved. iii SCOR Version 14.0


Introduction to SCOR
The Supply Chain Operations Reference Digital Standard (SCOR DS) is a model that provides
methodology, diagnostic and benchmarking tools that help organizations make dramatic and rapid
improvements in supply chain processes. The world of supply chain management never stops
advancing, and neither do supply chain professionals and their organizations. Supply chains
require savvy operators, supervisors, and leaders with knowledge about the global standards and
practices that move the needle on supply chain performance. ASCM is the global leader in supply
chain organizational transformation, innovation and leadership that develops supply chain talent
and elevates end-to-end supply chain performance. From education and certification to
benchmarking and best practices, ASCM sets the industry standard.

The SCOR Digital Standard is a part of the ASCM body of knowledge used to foster the
advancement of end-to-end supply chain management.

SCOR Digital Standard Summary


The Supply Chain Operations Reference Digital Standard (SCOR DS) model is the product of
ASCM (formerly APICS) following the merger of the Supply Chain Council and APICS in 2014.
The SCOR model was established in 1996 and has been updated regularly to adapt to changes in
supply chain business practices. SCOR remains a powerful tool for evaluating and comparing
supply chain activities and performance. SCOR captures a consensus view of supply chain
management. It provides a unique framework that links business processes, metrics, best
practices, and technology into a unified structure to support communication among supply chain
partners and to improve the effectiveness of supply chain management and related supply chain
improvement activities.

The ASCM member base represents a broad cross-section of industries, including manufacturers,
distributors, and retailers. The vast ASCM network also is composed of technology suppliers and
implementers, academics and government organizations that participate in ASCM activities and
the development and maintenance of the SCOR Digital Standard model.

ASCM is interested in providing the widest possible dissemination of SCOR because the
widespread use of the model enables communication using common definitions and
measurements. It also results in better customer-supplier relationships, software systems that
better support members using common measurements and terms, and the ability to rapidly
adopt c o m m o n practices.

Scope of the SCOR Digital Standard


The SCOR model has been developed to describe the business activities associated with all
phases of satisfying customer demand. The model itself contains multiple tabbed sections and
is organized around the seven primary management processes of Orchestrate, Plan, Order,
Source, Transform, Fulfill, a n d Return. (See Graphic 1.) By using these process building blocks,
the model c an describe supply chains that are very simple or very complex using a common
set of definitions. As a result, disparate industries can be linked to describe the depth and
breadth of nearly any supply chain. The model has been able to successfully describe and
provide a basis for supply chain improvement for global projects as well as site-specific projects.

© ASCM 2022. All rights reserved. iv SCOR Version 14.0


SCOR Process

Graphic 1: SCOR-DS is organized around seven major management processes.

The graphic illustrating the SCOR-DS model is a double infinity diagram, representing today's
supply chain's looped, continuous, and connected nature and the seven critical processes within
every supply chain. The SCOR-DS graphic displays the balance of Supply and Demand in a
horizontal infinity loop and Synchronize and Regenerate in a vertical infinity loop.

SCOR spans all customer interactions from order entry through paid invoice; all physical
material transactions that occur from the supplier's supplier to the customer's customer,
including transactions for equipment, supplies, spare parts, bulk products, and software; and all
market interactions from the understanding of aggregate demand to the fulfillment of each order.
It does not attempt to describe every business process or activity. Specifically, SCOR does not
address sales and marketing, including demand generation; product development; or research
and development

As shown in Graphic 2, the model is designed to support supply chain analysis at multiple
levels. ASCM has focused on process levels 0 to 3, which are industry neutral. SCOR does
not attempt to prescribe how an organization should conduct its business or tailor its systems and
information flow. Every organization that implements supply chain improvements using SCOR
will need to extend the model, at least to level 4, using industry, organization, and location-
specific processes, systems, and practices.

© ASCM 2022. All rights reserved. v SCOR Version 14.0


SCOR Process Hierarchy

Graphic 2: SCOR is a hierarchical process model.

It is important to note that this model describes processes, not functions. In other words, the model
focuses on the activity involved, not the person or organizational element that performs the
activity.

SCOR structure
SCOR is a process reference model. The purpose of a process reference model, or business
process framework, is to define process architecture in a way that aligns with key business
functions and goals. Architecture here references how processes interact and perform, how these
processes are configured, and the skills requirements for the staff operating the processes.

The SCOR reference model consists of four major sections:


• Performance includes standard metrics to describe process performance and define
strategic goals.
• Processes offers standard descriptions of management processes and process
relationships.
• Practices explains management practices that produce significantly better process
performance.
• People comprises standard definitions for skills required to perform supply chain processes.

The SCOR model also contains a section called Resources, which provides two downloadable
PDFs - Introduction to SCOR and Information Model-SCOR Digital Standard.

© ASCM 2022. All rights reserved. vi SCOR Version 14.0


Performance
The Performance section of SCOR focuses on the measurement and assessment of the
outcomes of supply chain process execution. A comprehensive approach to understanding,
evaluating, and diagnosing supply chain performance consists of three elements: performance
attributes, metrics, and process or practice maturity. These elements, as distinct from the levels in
the Process and metrics hierarchies, describe different aspects or dimensions of performance:
• Performance attributes are strategic characteristics of supply chain performance used to
prioritize and align the supply chain’s performance with the business strategy.
• Metrics are discrete performance measures that are composed of levels of a connected
hierarchy.
• Process or practice maturity is a reference tool based on objective, specific descriptions that
can be used to evaluate how well supply chain processes and practices incorporate and
execute accepted best-practice process models and leading practices.
• SCOR recognizes three performance categories and eight performance attributes as shown
in Table 1.

Performance Definition
Attributes

Reliability (RL) The ability to perform tasks as expected. Reliability focuses on


the predictability of the outcome of a process. Typical metrics for
the Reliability attribute include delivering a product on time, in the
right quantity, and at the right quality level.
Resilience

The speed at which tasks are performed and the speed at which
Responsiveness a supply chain provides products to the customer. Examples
(RS) include cycle-time metrics.

The ability to respond to external influences and marketplace


Agility (AG) changes to gain or maintain a competitive advantage.

The cost of operating the supply chain processes. This includes


Costs (CO) labor costs, material costs, and management and transportation
costs.
Economic

The Profit attribute describes the financial benefit realized when


Profit (PR) the revenue generated from a business activity exceeds the
expenses, costs, and taxes involved in sustaining the activity.

The ability to efficiently utilize assets. Assets’ strategies in a


Assets (AM) supply chain include inventory reduction and insourcing rather
than outsourcing.
Sustainability

The Environmental attribute describes the ability to operate the


Environmental (EV) supply chain with minimal environmental impact, including
materials, water, and energy.

The Social attribute describes the ability to operate the supply


Social (SC) chain aligned with the organization’s social values, including
diversity and inclusion, wage, and training metrics.

Table 1: The SCOR performance attributes


© ASCM 2022. All rights reserved. vii SCOR Version 14.0
Reliability, Responsiveness and Agility are considered customer (resilience) focused. Cost. Profit,
and Assets are considered internally (economically) focused. Environmental and Social are
outward (sustainability) focused. All SCOR metrics are grouped within one of the performance
attributes.

Each Performance attribute has at least one level-1 or strategic metric. These level-1 metrics are
the calculations by which an organization can measure how successful it is in achieving its desired
positioning within the competitive market space.

Performance Definition
Attributes

Perfect Order Fulfillment (RL.1.1)


Reliability (RL) Perfect Supplier Order (RL.1.2)
Economic

Perfect Return Order Fulfillment (RL.1.3)

Responsiveness (RS) Order Fulfillment Cycle Time (RS.1.1)

Agility (AG) Supply Chain Agility (AG.1.1)

Total Supply Chain Management Costs (CO.1.1)


Costs (CO)
Cost of Goods Sold (COGS) (CO.1.2)
Economic

Earnings Before Interest and Taxes (EBIT) as a Percent


Profit (PR) of Revenue (PR.1.1)
Effective Tax Rate (PR.1.2)

Cash-to-Cash Cycle Time (AM.1.1)


Assets (AM) Return on Fixed Assts (AM.1.2)
Return on Working Capital (AM.1.3)

Materials Used (EV.1.1)


Energy Consumed (EV.1.2)
Sustainability

Environmental (EV) Water Consumed (EV.1.3)


GHG Emissions (EV1.4)
Waste Generation (EV.1.5)

Diversity and Inclusion (SC.1.1)


Social (SC) Wage Level (SC.1.2)
Training (SC.1.3)

Table 2: The SCOR level 1 metrics

The SCOR metrics are organized in a hierarchical structure. SCOR describes level-1, level-2, and
level-3 metrics. The relationships between these levels are diagnostic. Level-2 metrics serve
as diagnostics for level-1 metrics. This means that by looking at the performances of the
level-2 metrics, performance gaps or improvements for level-1 metrics can be explained. This type
of analysis of the performance of a supply chain is referred to as metric decomposition or

© ASCM 2022. All rights reserved. viii SCOR Version 14.0


root-causing. Similarly, level-3 metrics serve as diagnostics for level-2 metrics. The level of a
metric is included in the codification of the metric itself.

Metrics codification starts with the performance attributes: Reliability is RL, Responsiveness is RS,
Agility i s AG, Profit is PR, Cost is CO, Assets is AM (for Assets Management), Environmental is EV,
and Social is SC. Each metric starts with a two-letter code, followed by a number to indicate the
level and then a unique numerical identifier. For example, Perfect C u s t o m e r Order Fulfillment
(RL.1.1) is a level-1 metric within the Reliability attribute. Customer Order Perfect Condition
(RL.2.4) is a level-2 Reliability metric.

Process or practice maturity provides a qualitative comparison of supply chain processes and
practices to descriptive representations of different levels of process and practice adoption and
implementation. This evaluation measurement of supply chain process and practice effectiveness
typically follows widely used models for practice maturity, which sometimes are referred to as
capability maturity models. Numerous maturity models exist for supply chain management, and
they typically follow a stages of maturity scale. On these types of scales, high-maturity processes
employ, and often extend, best practices and are implemented with a high degree of discipline and
compliance. By comparison, low-maturity processes are characterized by outdated practices or a
lack of discipline and consistency. SCOR currently does not embed a prescribed maturity model
framework and content directly into the SCOR model document. The Performance section provides
an overview of this important element of supply chain performance, and SCOR users are
encouraged to draw upon existing maturity models to develop and tailor the content to their
industries and companies.

Processes
The Processes section of SCOR provides a set of predefined descriptions for activities most
companies perform to effectively execute their supply chains. The macro-level SCOR processes,
include Level-0 and Level-1 processes. Orchestrate is a Level-0 process; Plan, Order, Source,
Transform, Fulfill and Return are Level-1 processes and are well-known and widely adopted.
SCOR also identifies two more process levels. In this section, level indicates the span of the
process. A level-3 process is focused on a more detailed activity. A level-1 process spans multiple
level-3 processes. Graphic 2 shows the levels within the SCOR model processes.

Level-2 process categories determine the capabilities within the level-1 processes. For example, the
key level-2 processes for Plan are Plan Supply Chain, Plan Order, Plan Source, Plan Transform,
Plan Fulfill, and Plan Return; the level-2 processes for Source are Strategic Source, Direct Procure,
Indirect Procure, and Source Return. Level-3 processes are process steps that are performed in a
certain sequence to plan supply chain activities, source materials, make products, deliver goods and
services, and handle product returns.

Companies may develop standard process descriptions for activities within the level-3 processes,
which would become level-4 processes. These processes generally are industry-, product-,
location- o r technology-specific. For example, most if not all companies need to perform a task
known as receive order signal. This is a level-3 process (F1.1, F2.1 & F3.1, for example). The
level-4 processes would describe the steps to receive the order signal, such as whether the order
was received electronically, over the phone or in person. Each of these scenarios may require a
unique level-4 process description. Another step could be how the order is entered and processed.
For example, electronic orders may be automatically processed by software, phone orders might
be handled by the order desk, and in-person orders would be handled at the checkout counter.

The level at which processes need to be described depends on the project. For most projects,
level-2 process diagrams help identify structural issues in the supply chain, such as why a
company has a warehouse feeding a warehouse feeding a warehouse or why lead times for certain
sources are longer.

© ASCM 2022. All rights reserved. ix SCOR Version 14.0


Level-3 process diagrams help identify decision points, triggers and process disconnects. For
example, consignment inventory and another sourcing alternative, vendor-managed inventory, are
listed as Practices. Both need the standard level-3 processes, but the way these processes are
sequenced and who performs them is the differentiator.

Process codification differs by level. Level-0 and Level-1 processes are represented by one or two
capitals. OE are the initials for Orchestrate, P represents Plan, S identifies Source, O designates
Order, T labels Transform, F denotes Fulfill, and R marks Return. Most level-2 processes add a
period and a number, such as in F.1 for Fulfill B2C and P.3 for Plan Source. Level-3 processes
add a period followed by a unique number, such as i n F1.1 for Receive Order Signal and F1.2
for Pick product.

Practices
The practices section provides a collection of industry-neutral practices that companies have
recognized for their value. A practice is a unique way to configure a process or a set of
processes. The uniqueness can be related to the automation of the p r o c e s s , a technology
applied in the process, special skills applied to the process, a unique sequence for performing the
process, or a unique method for distributing and connecting processes between organizations.

SCOR recognizes that several different qualifications of practices exist within any organization
and however, this version classifies all practices as Best Practices (BP). SCOR a l s o recognizes
the qualification of a practice may vary by industry or geography. For some industries, a
practice may be standard, whereas the same practice may be considered an emerging or best
practice in another industry. The SCOR classification of practices has been established based
on input from practitioners and experts from a diverse range of industries.

All SCOR practices have been mapped to one or more classifications. SCOR recognizes twenty-
one classifications, which help identify practices by focus area, such as inventory management or
new product introduction.

Practices also are mapped to one or more practice pillars, namely Analytics and Technology,
Process, and Organization. The pillars help identify where a given practice has the most impact
and can provide maximum benefit.

People
The People section of SCOR was introduced in SCOR v10 and provides a standard for describing
skills required to perform tasks and manage processes. Typically, these skills are s pec ific to
supply chain management, but some skills may be applicable outside the supply chain process
domain as well.

Skills are described by a standard definition and association to other People aspects, namely
experiences, training, and competency levels. Competency levels are not included in the
framework descriptions, but SCOR recognizes five commonly accepted competency levels:
• A novice is an untrained beginner with no experience who requires and follows detailed
documentation.
• A beginner performs the work with limited situational perception.
• A competent employee understands the work and can determine priorities to reach goals.
• A proficient individual oversees all aspects of the work and can prioritize based on situational
aspects.
• An expert has intuitive understanding and can apply experience patterns to new situations.

These competency levels are used similarly as process or practice maturity levels. The person
or job specification is evaluated on the found, in the case of a person, or desired, in the case
of a job specification, level of competency.

© ASCM 2022. All rights reserved. x SCOR Version 14.0


Codification within the People section represents skills, experiences, and training. All People
elements start with a capital H followed by a capital letter representing the element: S is for skills,
E is for experiences, and T is for training. These are followed by a period and a four-digit number.
For example, HS.0046 is the code for the skill Enterprise Resources Planning (ERP) Systems,
and HT.0007 is the code for APICS Certified Supply Chain Professional (CSCP) training.

© ASCM 2022. All rights reserved. xi SCOR Version 14.0


SCOR improvement program and SCOR Racetrack
The SCOR Racetrack model describes how to organize a SCOR improvement program using the
SCOR process and supporting methodologies

The methodology is described in five distinct steps:


• Pre-SCOR program steps: Prepare the organization for the mission critical SCOR
improvement program.
• Set the scope: Understand the business environment and define the scope of the supply
chain for a SCOR improvement program.
• Configure the supply chain: Determine the performance metrics and processes of the
SCOR improvement program.
• Optimize projects: Establish the project portfolio including process scope, priority, and
anticipated benefits.
• Ready for implementation: Implement projects in the portfolio and commence benefits
realization.

See Graphic 3 and Graphic 4 on the next two page to view the SCOR Racetrack model in detail.
The SCOR improvement methodology currently is described in full in the SCOR-Professional
training material.

© ASCM 2022. All rights reserved. xi SCOR Version 14.0


Graphic 3: SCOR Racetrack model

© ASCM 2022. All rights reserved. xii SCOR Version 14.0


Graphic 4: SCOR Racetrack model activities

© ASCM 2022. All rights reserved. xiii SCOR Version 14.0


SCOR v14 Updates
The SCOR model is developed and maintained by the voluntary efforts of ASCM members and
supply chain industry subject matter experts. ASCM depends on the contributions of its members
to actively advance the state of knowledge in supply chain by identifying required model changes,
researching, and validating those changes, and developing the consensus regarding the proposed
changes.

The following updates were included in this revision of the SCOR framework.
▪ No longer linear – outside in, infinitely in motion
▪ Added Orchestrate to ‘multi-directionally’ link supply chain strategy to Plan and the rest of
the processes
▪ Overhauled Source
▪ Formalized Warehouse and Transportation Planning
▪ Separated Deliver into Order and Fulfill to better represent omni-channel, transportation,
and warehouse management
▪ Expanded Make to Transform and updated Return to include services
▪ Expanded SCOR attributes: customer facing to Resilience; internal facing to Economic;
and added Sustainability
▪ Added sustainability (circularity) practices, metrics, skills, competencies to all processes
▪ Supply Chain subject matter experts reviewed all Performance, Process, Practices and
People attributes. There are many additions, a few deletions (obsolete items) and all
definitions reviewed and edited. Many changes in Level 2 and 3 for Performance and
Processes.
▪ Open access with authenticated ASCM login. There is no cost to register on ascm.org.

© ASCM 2022. All rights reserved. xiv SCOR Version 14.0


Technical Contributors to the SCOR Digital Standard

ASCM would like to extend our gratitude to the following subject matter experts for their technical
contributions, time commitment, expertise, and passion to the continued development of the SCOR
Digital Standard (DS). The development of SCOR depends on the support and input of SCOR
practitioners, supply chain subject matter experts, and ASCM members. The following individuals have
devoted time and effort to the development of the SCOR DS. We would also like to specially recognize
the SCOR DS Facilitators for leading this update, as well as their task force volunteers who actively
assisted throughout the SCOR DS 2022 update. Thank you!

SCOR Update Facilitators


Nishat Ahmed, CPIM, CIRM, CSCP, CLTD, Samer Majdi Almadhoun, CSCP, CLTD, SCOR-P
SCOR-P, CTL
Muhakat
M.C. Dean Inc.
Jolanda Pretorius, CSCP, SCOR-P
Ayman Assaad, MBA, CSCP-F, SCOR-P
End2end Supply Chain Academy and
Pass Consulting Group Inc Consulting

Cynthia Kalina-Kaminsky, Ph.D., CPIM, CSCP, MJ Schoemaker, CSCP, CPF


CLTD, SCOR-P
ProsecE2E Pty Ltd
Process & Strategy Solutions
Dennis Vegter
Monica Lammert, CPIM, CSCP, SCOR-P
Ziequa.nl
OpEx Consulting

SCOR DS Update Task Force Members

May Abou Ghannam, CSCP, SCOR-P John Danley, CPIM, CSCP, CLM, CDDP
Muhakat Spirit Aerosystems
Seif El Adwar Madhav Durbha, Ph.D.
Symbios Consulting Coupa Software
Christine Barnhart, CPIM Nader Edward, SCOR-P

CAPITER
Zach Bennett Mostafa El-Saify, CPIM, CLTD, SCOR-P
Visual Enterprise Architecture CAPITER
Jac Braat, SCOR-P Frederic Gaurier, CPIM, CSCP, SCOR-P
Jac Braat Advies Trencadis
John Choate Steve Georgevitch
L&T Technology Services, LLC Boeing

© ASCM 2022. All rights reserved. xv SCOR Version 14.0


Damodar Vishwanath Hegde, M Sc, MBA Changjian Li, SCOR-P

Coca-Cola Europacific Partners Midea Group

Hugues G. Hénault, CPIM, LSSBB, SCOR-P, Giuseppe Lovecchio, CPIM-F, CSCP-F, CLTD-
DDP F, SCOR-P, DDPP, DDLP, PMP

Trencadis Lovecchio Consulting

Glenn Heywood Edwin Omaso Machio, CSCP, SCOR-P, MA,


MCPIS
PWC

Lan Huang, CPIM


Daryll Mascarenhas, SCOR-P
POLY
Royal FrieslandCampina
Eng. Mohammed Walid Itani, CSCP, SCOR-P,
MBA, DESM, MM SCM, CPES, PMP, CDDP, Mohini Moharir, CSCP
DDPP
University of Illinois at Chicago
SCELTIC Consulting Solutions
Russell Molokoane, SCOR-P
Ken Jacobsen
Transnet SOC Ltd.

David Morrow, Ph.D., CPIM-F, SCOR-P


Stepan Kobzyev, SCOR-P, SCPro1
Supply Chain Engineers

Shereen Mosallam
Vicky Koo, SCOR-P
Symbios Consulting Group
Vizilog Asia Ltd.
Omar Moya, CPIM, CSCP, CLTD, SCOR-P,
Derk Kuiper, CPIM-F, CSCP, CLTD, SCOR-P DDPP, DDLP

Visie Partners B.V. SCEC

Dharmesh Kumar, SCOR-P Jaggi Nagasundaram

Amazon.com The Boeing Company

Rosario Landa, CPIM, CSCP Clement Ngombo, CSCP, SCOR-P, PharmD

Anahuac University BeForService Consulting and Training

Thomas Lang, SCOR-P Gisele Nogueira, CPIM

LMI Stora Enso

Amy LeBaron, CPIM, CSCP, SCOR-P James Nsoh, CSCP, SCOR-P

Dr. Ron Lembke, Ph.D. Oluwatayo Okorie, SCOR-P

University of Nevada, Reno Hayat Kimya

Ted Olaye, CSCP, MBA

Deloitte

© ASCM 2022. All rights reserved. xvii SCOR Version 14.0


Hector Oviedo, CSCP, SCOR-P Emanuele Strada

ASCM Monterrey Chapter THINKING SOLUTIONS SAGL

Dr. Xiaohu (Tiger) Qiao, CPIM, CSCP, SCOR-P Stephanie Thomas

ODL University of Arkansas

John Reboulet, PMP Nicolas Vareillas, CPIM-F, CSCP

Deloitte Consulting LLC Festo Didactic France

Anne G. Robinson, Ph.D. Spyridon Xenos, SCOR-P

Kinaxis PowerStop, LLC

Henry Soo, CPIM, CSCP, CLTD, SCOR-P Muizzuddin Yaqeen, SCOR-P

DataDevelop Consulting Ltd United Nations

Bruno Stefanutti, CPIM, CSCP, CLTD, SCOR-P

Consept

ASCM Subject Matter Expert Staff Contributors


Fernanda Debellian, CSCP, CLTD, SCOR-P Grant Swanepoel, SCOR-P
Carolyn Lawrence, SCOR-P Jason Robke, SCOR-P
Nisha Shah, SCOR-P

© ASCM 2022. All rights reserved. xviii SCOR Version 14.0

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