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SUPPLY CHAIN OPERATIONS REFERENCE (SCOR) MODEL: AN OVERVIEW AND A


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Conference Paper · October 2013


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International Conference on Smart Technologies for Mechanical Engineering, (STME-2013) 25-26 October, 2013,
Delhi technological university, Delhi: Proceedings, ISBN: 978-93-83083-35-0 (Page 55)

SUPPLY CHAIN OPERATIONS REFERENCE (SCOR) MODEL: AN OVERVIEW


AND A STRUCTURED LITERATURE REVIEW OF ITS APPLICATION
SURYA PRAKASH1 SANDEEP2
Research Scholar PG Student
Department of Mechanical Engineering Department of Mechanical Engineering
Malaviya National Institute of Technology (MNIT) Malaviya National Institute of Technology (MNIT) Jaipur
JLN Marg, Malaviya Nagar, Jaipur JLN Marg, Malaviya Nagar, Jaipur
Email: suryayadav8383@gmail.com Email: sandeepmaggu7@gmail.com
Phone: +91-7877445401 (M), +91-141-2713330 (O) Phone: +91- 8385995806 (M), +91-141-2713330 (O)

GUNJAN SONI3* A.P.S. RATHORE4


Assistant Professor Professor
Department of Mechanical Engineering Department of Mechanical Engineering
Malaviya National Institute of Technology (MNIT) Malaviya National Institute of Technology (MNIT)
JLN Marg, Malaviya Nagar, Jaipur JLN Marg, Malaviya Nagar, Jaipur
Email: gunjan.mnit@gmail.com, gunjan1980@gmail.com Email: apsr100@yahoo.co.in
Phone: +91-8385888855 (M), +91-141-2713330 (O) Phone: +91-9414067895(M), +91-141-2713330 (O)
*Corresponding author

ABSTRACT management is the systematic, strategic coordination of the


In present time, increasing competition and fast changes in traditional business functions and the tactics across these
markets has put supply chains in stress. Thus in order to help business functions within a particular company and across
organizations overcome this pressure, supply chain council has businesses within the supply chain, for the purposes of
suggested Supply Chain Operations Reference (SCOR) model. improving the long-term performance of the individual
It is a step by step procedure which provides a unique companies and the supply chain as a whole [1].
framework consisting of five processes (plan, source, make,
deliver and return) with process type, processes categories and Christopher [2] defines supply chain as, ―a network of
decompose processes as three levels which help in connected and interdependent organisations mutually and co-
implementing it in an organization, leading to path of operatively working together to control, manage and improve
improvement. The practitioner‘s community has given adequate the flow of material and information from suppliers to end
respect to SCOR model, although academic researchers have users‖. Increasingly, firms are adopting SCM to reduce costs,
not reaped its benefits fully. Thus in order to advocate the wide increase market share and sales, and build solid customer
use of SCOR model, this research is carried out. This article relations [3].
presents a structured literature review on content and research
based methodology of SCM of articles that have used SCOR. It SCM activities can be broadly classified in following three
is believed that article would bring a much needed union in the types:
practitioners and academic researcher‘s domain. i. Operational: This is concerned with the routine activities of a
facility to ensure that the more profitable way to fulfil customer
Keywords: SCOR model, Supply Chain, Review, order is executed examples are actions taken in course of
Performance measurement. placing and filling orders.
ii. Design: Design mainly focus on decision making regarding
NOMENCLATURE facility role, facility location, capacity allocation, market and
Literature review network.
iii. Strategic: Strategic refers to what each process or function
1. INTRODUCTION will try to do particularly well. These are decisions at the
. strategic level by business managers taken by understanding the
Supply chains encompass the companies and the business dynamics of supply chain and development and their evolving
activities needed to design, make, deliver and use a product or objectives. Strategic planning is needed in order to challenge
service. Business depends on their supply chains to provide existing arrangements and to generate radical alternatives [4].
them with what they need to survive and thrive in the present
cut throat globalised environment; hence organisations have Strategic planning assumes most important role in above three
shown interest in supply chain management (SCM), as it activities at top level. Operation and design takes SCM at
provides them with competitive advantage. Supply chain execution levels. In this context, the current research study was

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International Conference on Smart Technologies for Mechanical Engineering, (STME-2013) 25-26 October, 2013,
Delhi technological university, Delhi: Proceedings, ISBN: 978-93-83083-35-0 (Page 55)
taken up to understand the development and penetration of common set of business problems through a standardized
numerical and analytical model required to solve operational language, standardized metrics, and common business practices
and design related problem & issues as a concept within the which accelerate business change and improve performance.
business domain SCM. For this purpose overview of SCOR is
presented. As SCOR model can be utilised for the performance Business problems commonly addressed by SCOR are:
measurement which leads to supply chain improvements. i. Business Management Challenges:
A literature review of research articles that specifically Strategy Development - identify, instrument, and deploy supply
focusing in SCM and its evaluation through SCOR is carried chain strategies within and across organizations
out and meaningful inferences from diverse perspectives such Merger, Acquisition or Divestiture - merge or split up
as content, research methodologies utilised, growth, level of functioning supply chains to achieve merge, acquisition, or
SCOR utilisation etc. are drawn up. It is also revealed from this divestiture operational goals
study that no such literature review exists on SCM in the Supply optimization and Re-engineering - improving
context of the SCOR with such structured and exhaustive individual, clusters, or networks of supply chains
details and hence it is hoped that this work would add a Standardization, Streamlining - improve operational control
significant value by integrating practitioner's model in and cost by standardizing core processes
academic domain. Management alignment - create standardizes management
tools, reporting, and organizational structures
Many analytical and numerical models, stemming from New business start-up (company and supply chain start-ups) -
conventional business have been proposed to handle design and create and deploy supply chains
operational issues. While models for strategic decisions, which Benchmarking - competitive assessment of qualitative and
deals with the entire supply chain as a whole, are scarce [4]. quantitative performance
Based on the past data it is being seen that the most promising Process Outsourcing - identifying and outsourcing non-value
for supply chain strategic decision making is the supply chain add processes
operations reference (SCOR) model developed by Supply ii. Technology Services
Chain Council. Software implementation (ERP, PLM, QC) - pre-
The organization of paper this paper is as follows: Section 2 implementation definition and optimization of supply chains
deals with SCOR model overview. Section 3, deals with Workflow & Service Oriented Architecture - optimization of IT
methodology chosen for carrying out structured literature service provisioning
review articles and proposed classification scheme are iii. Evolving:
presented. Section 4 carries out discussion on results of review. Skills development - standardization of skills definition,
Finally the conclusions are presented in section 5. sourcing, and performance criteria

2. SUPPLY CHAIN OPERATIONS REFERENCE Framework of SCOR model: SCOR Framework help in
(SCOR) MODEL OF SUPPLY CHAIN COUNCIL understanding how to model supply chain with the use of
SCOR and it provides a unique framework that links business
According to supply chain council (SCC) supply chain is process, metrics, best practices and technology features into a
managing supply and demand, sourcing raw materials and unified structure to support communication among supply chain
parts, manufacturing and assembly, warehousing and inventory partners and to improve the effectiveness of supply chain
tracking, order entry and order management, distribution across management and related supply chain improvement activities.
all channels, and delivery to the customer. Hence in order to SCOR is having a process framework that delivers the well-
fulfil very need of evaluating and performance improvement, known concepts of business process reengineering,
SCC as a not-for-profit organization, has developed supply benchmarking, and best practices into a cross-functional
chain operations reference (SCOR) model. It can be used to framework, (see figure 1).
describe supply chains that are very simple or very complex
using a common set of definitions and enabling a common Standard processes: Plan, Source, Make, Deliver, Return
understanding. It lets companies quickly determine and Standard metrics: Perfect Delivery, Cash Cycle Time, Supply-
compare the performance of supply chain and related Chain Cost, etc
operations within their company or against other companies Standard practices: EDI, CPFR, Cross-Training, Sales &
[11]. Operations Planning etc
Standard skills: Aptitudes, Experiences, Credentials, Tasks
SCOR is the standard industry process reference model which
dramatically improves supply chain operations. It contains a The main purpose of SCOR framework model is measuring and
standard description of management processes, a framework of
relationships among the standard processes, standard metrics to
measure process performance, management practices that
produce best-in-class performance, and a standard alignment to
software features and functionality. SCOR helps manage a

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International Conference on Smart Technologies for Mechanical Engineering, (STME-2013) 25-26 October, 2013,
Delhi technological university, Delhi: Proceedings, ISBN: 978-93-83083-35-0 (Page 55)
improving the performance measure of supply chain and
comparing it against internal and external industry goals.
Figure (1): SCOR span structure (SCOR version 9.0 by Supply
chain council (SCC))

Supply chain performance mainly focused on: Level Description Schematic


Top Level
Reliability - achievement of customer demand fulfilment on-
time, complete it without damage etc.
Responsiveness - the time it takes to react to and fulfil customer
demand
Agility –respond to short term changes in demand or supply Configuration
quickly and can handle external disruptions smoothly hence Level
enable supply chain to increase/decrease demand within a given
planned period
Cost - objective assessment of all components of supply chain Process To address one specific
cost Element configuration of process
Assets - the assessment of all resources used to fulfil customer Level element
demand
Implementation Process
Standard SCOR process plan, source, make, deliver, return are Level element
used to evaluate supply chain performance. For this purpose
supply chain activities are described in four levels. Table 1 and
figure (2) shows these levels with details.

Table 1: SCOR levels of process (Adopted from supply chain


council)
Figure (2): SCOR 9.0 Supply–chain operation reference
Level 1. Level 2. Level 3. Level 4. model(Adopted from supply chain council)
It tells A Company‘s It defines a This is an
about the supply chain company‘s implementation
scope and can be ability to level (Decompose
content for ―configured- compete process element),
the SCOR. to-order‖ at successfully this is used by
Level 2 from in its Companies to
core ―process chosen implement SCM
categories.‖ markets practices that are
unique to their
organizations.

SCOR-Application process:

The outcome of SCOR application for a supply chain can be


viewed and analysed on the following outcomes. Figure (3)
shows business scope diagram, figure (4) shows geographic Figure (3): SCOR 9.0: Supply-chain operation reference
map and figure (5) shows thread diagram. These all figure
contain very much needed information for future
improvements. The SCOR matrices are utilized for this purpose
and information obtained can be shared for further analysis of
supply chain.

This can also be explained through step by step application.


i. Create business scope diagram
ii. Create a geographic map
iii. Create a thread diagram

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International Conference on Smart Technologies for Mechanical Engineering, (STME-2013) 25-26 October, 2013,
Delhi technological university, Delhi: Proceedings, ISBN: 978-93-83083-35-0 (Page 55)
model(Adopted from supply chain council) gives distribution of articles using various search articles are
available focusing on SCOR and its application in SCM.

Figure (4): Geographic map (Adopted from supply chain This research has following unique features-
council) i. Broad and generic level of article selection, time
horizon of article selection is from 1998 to April
2013.
ii. Various combinations of search criteria were tried
to search articles. The most suitable and feasible
article search criterion is applied in four major
management science publishers viz. Emerald
Online, Science Direct, Taylor and Francis, and
Sage. Table: 2, shows the number of articles
obtained from different publisher‘s website based
on the above search terms. This method of article
selection gives a generic view.
iii. Any duplication papers found during search
criteria were filtered out in the selection of papers.
Some papers were left out where the prime focus
was not on SCM or if it is not related to SCOR.
Finally, a total of 30 papers have been considered
Figure (5): Thread diagram (Adopted from supply chain for review in this study. The details regarding the
council) same are presented in Appendix-A at the end of
this paper. These 30 articles are to be used for
further analysis.
Above mention are the methods used for measuring
performance of a supply chain through SCOR and its . Table 2: Distribution of articles with respect to each of the
performance measure mainly focus on reliability, search terms
responsiveness, agility and cost as mention earlier [11] Data Search criteria No. of
Base articles
Emerald ‗Supply chain‘ in All except full text 18
After performance is measured then the next step is re-aligning and ‗SCOR‘ in All except full text.
supply chain processes and best practices to fulfill unachieved Science ‗Supply chain‘ in abstract, title, 25
or changing business objectives. This re-alignment is achieved Direct keyword and ‗SCOR‘ in abstract,
through a combination of various tools that are implemented to title, keyword
supply chains. These tools are: Taylor & ‗Supply chain‘ in abstract, title, 25
 Lean Manufacturing analysis Francis keyword and ‗SCOR‘ in abstract,
 Six-Sigma analysis title, keyword
 Theory-of-Constraints analysis Sage ‗Supply chain‘ in title and ‗SCOR‘ in 0
 ISO-9000 style process capture and control title
 Balanced score cards ‗Supply chain‘ in title and ‗SCOR‘ 1
 Benchmarking in abstract
‗Supply chain‘ in Keyword and 0
Also there are other combined industrial engineering based 'SCOR‘ in keyword
best-practice and techniques which can be used.
In each publication, the criterion which gives optimum search
The above overview gives an in-depth insight of SCOR and its results was considered and papers were downloaded from
application in SCM literature. The other main aspect of this respective database. The relevant papers from the point of view
study is to find out the present status of use of SCOR model in of present study were shortlisted to be included in final sample
SCM. This objective can be achieved through a structured for carrying out literature review; details are given in Table: 3
literature review. gives number of articles in each publication.

3. LITERATURE REVIEW Table 3: Number of articles in each publication


S. No. Publisher name No. of paper
This section deals with the methodology that was adopted in
various selection of papers and their classification. Table: 2, 1 Emerald 16

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International Conference on Smart Technologies for Mechanical Engineering, (STME-2013) 25-26 October, 2013,
Delhi technological university, Delhi: Proceedings, ISBN: 978-93-83083-35-0 (Page 55)
2 Science Direct 5 3 Network 16 [1,3,5,7,13,16,17,18,19,20,
23,24,27,28,29,30]
3 Taylor & Francis 9
Performance measurement: In this activity focus is on the
Classification Methodology reported performance measurement of supply chain with the
use of SCOR. Table 5 gives classification based on
The obtained papers were classified based on the following two performance measurement of supply chain for SCOR.From
major schemes, Soni and Kodali [5] and Soni and Kodali [6] as Table 5 it is clear that the articles were not reporting the
content based and research based with relevant modifications to performance measurement of supply chain in numerical figures
accommodate the focus of present research. directly, but their main focus is to elaborate the use of SCOR as
a tool.
i. Level of Analysis: This classification is adopted from
Croom et al. [7] and Gubi et al.[8], which includes Table 5: Classification based on performance measurement of
levels of analysis named as ―Dyad‖. ―Chain‖ and supply chain for SCOR
―Network‖. S. Performance No. of Reference paper
ii. Performance measurement: The fact regarding ―Will N. measurement papers (Appendix I )
the implementation of SCOR enhanced performance
1 YES 6 [17,8,10,11,15,30]
of SCM‖ and ―Is it reported in the article/paper‖
obtained. The importance of performance 2 NO 24 [1,2,3,4,5,6,9,12,13,14,
measurement is justified by Kaplan [9]. 16,17,18,19,20,21,22,2
iii. Area of SCM research (SCM issue): This is an 3,24,25,26,27,28,29]
important parameter to classify various studies. This
includes strategy, business processes, information Area of SCM research (SCM issue): Table 6 gives Articles
technology, performance measurement etc. which classified by SCM issue. In Table: 6, there are four broad issues
gives an idea about the other focal/decision areas of of SCM are taken, these include information technology,
SCM. performance, strategic and business processes with application
iv. Sample industry: This classification is based on of SCOR model. It is very clear from the study that maximum
Burgess [10] and these criterions will thus help in utilization of SCOR is in the area of SCM performance
identifying possible sectors/industry of SCM research. measurement and improving the SCM. Information technology
v. SCOR utilization level: This data depicts the level of and strategic management are also important areas need to be
utilisation of SCOR as a tool and standard practice for considering when an organisation is ready to apply SCOR
performance measurement /improvement. model to its supply chain.
vi. Journal, Year and Publications: This analysis will
give an bird‘s eye view of all papers in a particular Table 6: Articles classified by SCM issue
journal, frequency of papers and their year of S.N. Issue No. of Reference paper
publication. This not only gives a good understanding papers (Appendix I )
of growth of concern area but also gives new topic to 1 Information 6 [1,10,19,20,24,25]
be explored. technology
2 Performance 13 [2,3,6,7,9,11,15,16,17,
4. RESULT AND DISCUSSION 18,22,26,30]
3 Strategic 8 [4,8,12,13,21
Evaluation of the papers is carried out on the basis of the ,23,28,29]
classification scheme adopted as research methodology. There 4 Business 3 [5,15,27]
are total 30 papers found suitable for carry out the structured processes
review. Appendix-I refer to the article that satisfies the
parameter of analysis. Industry: Articles classified by industry are given in Table 7.
The study shows that manufacturing industries are biggest
Level of analysis: The papers were classified on the basis of follower of the SCOR model. SCOR is as a tool of wide
―level of analysis‖. Table 4 gives articles classified by level of applicability in number of areas; hence 40 percent articles did
analysis. Most of the papers deal with the network level. not include any details of particular industry, such papers are
classified under a separate category called ‗Not available‘ from
Table 4: Articles classified by level of analysis Table: 7.
S.N. Level of No. of Reference paper Table 7: Articles classified by industry
analysis paper (Appendix I ) Industry No. of Reference paper (Appendix I )
1 Chain 9 [2,4,6,8,10,14,22,25,26] paper
2 Dyad 5 [9,11,12,15,21] IT 1 [1]

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International Conference on Smart Technologies for Mechanical Engineering, (STME-2013) 25-26 October, 2013,
Delhi technological university, Delhi: Proceedings, ISBN: 978-93-83083-35-0 (Page 55)
manufacturing 12 [2,3,6,7,8,9,10,18,19,20,25,30] Journal of Computer Integrated Manufacturing, IJOPM:
SME's 1 [11] International Journal of Operations & Production
Management, IJPE: Int. J. Production Economics, IJPPM:
NGO's 1 [12] International Journal of Productivity and Performance
N/A 11 [4,5,13,15,16,17,22,23,26,27,28] Management, IJPR: Int. Journal of Production Research,
IMDS: Industrial Management & Data Systems, JEIM: Journal
service 4 [14,21,24,29]
of Enterprise Information Management, JMTM: Journal of
Notes: SME- Small & Medium Enterprise, NGO: Non Manufacturing Technology Management, LIM: Logistics
Government Organization, N/A : Not Available Information Management, OJMPOR: Optimization: A Journal
of Mathematical Programming and Operations Research, PNS:
SCOR Utilization level: The Table 8 gives SCOR Utilization Progress in Natural Science, PPC: Production Planning &
level for SCM. Utilization refers to the application scope Control, SCMIJ: Supply Chain Management: An Int. Journal
and extant up to which SCOR is applied. This is done by
evaluating the paper on firm level or wide industry level SCOR and its applicability as an academic study have
approach of author. It is evident from Table 8 that both are tremendous potential. Although the SCM literature reviews
equally reported in research papers. This also proves the point with SCOR model focus are very few in number. There are few
that SCOR model can be applied at all levels for most of the aspects which are highlighted through this study.
supply chains. As SCOR model is mainly related to SCM performance
Table 8: SCOR Utilization level for SCM measurement and performance improvement. Most of the
Level No. of paper Reference paper research is being carried out at the network level. However, it is
(Appendix I ) believed that with the impact of changes due to globalization,
Firm 15 [1,3,7,8,9,11,14,16,19, use of SCOR will definitely increase the responsiveness and
20,21,22,25,26,30] efficiency of supply chains.
Industry 15 [2,4,5,6,10,12,13,15,
17,18,23,24,27,28,29] 5. CONCLUSION

Journal, Year and Publications: Table: 8 give the details This research is an early attempt to provide a brief
about the number of papers published in a journal. overview of SCOR model and supply chain management.
These efforts will help the supply chain to achieve its best
Table 8: Journal v/s no. of articles strategic fit. The study is carried out by selecting thirty
S.N. Journal No. of Reference Year papers from major databases namely Emerald, Science
papers Direct and Taylor & Francis. Articles are further analyzed
1 2009 on parameters like level of analysis, performance
BIJ 1 [11] measurement, area of SCM research, industry, and SCOR
2 BPMJ 1 [5] 2005 utilization level. The study shows that manufacturing
3 CIE 1 [20] 2005 industries are biggest follower of the SCOR model. Most
4 DPM 1 [12] 2011 of the papers deal with the network level. It is very clear
5 EIS 1 [28] 2011 from the study that maximum utilization of SCOR is in the
6 IJCIM 3 [23,24,25] 2011,12,14 area of SCM performance measurement and improving the
7 IJOPM 1 [3] 2004 SCM.
8 IJPE 3 [18,19,21] 2008,11,09 In this structured literature review, the findings is be very
9 IJPPM 2 [7,8] 2006,07 useful not only for researchers but also for business
10 IJPR 3 [22,29,30] 2011,10,07 establishments and managers. This paper also highlighted
11 IMDS 1 [10] 2008 the present status of the SCOR model and brings out areas
12 JEIM 1 [1] 2008 to focus for SCM performance improvement through
13 JMTM 2 [9,16] 2008,12 SCOR. The scope of the study can be further enhanced by
14 LIM 1 [2] 1997 including more articles, case studies from operation
15 OJMPOR 1 [26] 2012 management, business and operation research.
16 PNS 1 [17] 2009
17 PPC 1 [27] 2011 REFERENCES
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