The SCOR model is a standard for supply chain management that improves communication between partners. It focuses on customer interactions and product transactions, supporting strategic planning and continuous improvement. The model includes five management processes: planning, sourcing, production, delivery, and return.
The Supply Chain Operations Reference Model (SCOR) is a standard used across various industries for supply chain management. It was created to improve communication between supply chain partners. The SCOR model accomplishes this by detailing the relationship between each of the five management processes within the model: planning, sourcing, production, delivery, and return.
The SCOR model is also useful for data entry to better analyze various configuration options, such as Make-To-Order and Make-To-Stock. The SCOR model makes this possible by describing, measuring and evaluating the supply chain. It also supports strategic planning and encourages continuous improvement across the chain.
The SCOR model focuses primarily on customer interactions, starting from when the order is placed and until the invoice is paid. Furthermore, the SCOR model focuses on product transactions, whether that product is a service or a physical item. This includes all equipment used to create the product as well as any materials that were purchased from another company to create the product. With the SCOR model, a vendor’s supplier is also monitored for efficiency and quality.
The plan component of the SCOR model focuses on those processes that are designed to balance supply and demand. During this phase of the SCOR model, the company must create a plan to meet production, procurement, and delivery requirements and expectations. The next stage of the SCOR model, the source, involves determining those processes needed to obtain the goods and services in order to successfully support the project portion of the model or to meet current demand. The implementation phase of the SCOR model involves determining the processes necessary to create the final product.
The delivery phase of the SCOR model involves the processes required to deliver the goods to the consumer. This part of the model typically involves handling transportation, ordering, and distribution. The final stage of the SCOR model, returns, covers those processes involved in both returning and receiving the products to be returned. To properly plan for this phase, the business needs to establish proper customer support.
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