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Supply chain management (SCM) is a critical focus for companies that sell products, services, hardware, and
software. The supply chain includes everything involved in the flow of goods from a business to its
customers, clients, or other businesses. It’s not something that can be set up and left alone — your supply
chain needs to be regularly evaluated so it stays efficient and productive. That’s where the SCOR model
comes in.
SCOR 12.0
Originally developed in 1996 by management consulting firm PRTM, SCOR is endorsed by the Supply-Chain
Council, which is now part of the Association for Supply Chain Management (ASCM), formerly known as
APICS. The original SCOR framework was developed by AMR Research and consulting firm Pitiglio, Rabin,
Todd and McGrath (PRTM); and it was vetted by companies such as Intel, IBM, Rockwell Semiconductor,
and Proctor and Gamble. The SCOR framework was designed to help streamline the language used to
describe supply chain management, categorizing it into four processes: plan, source, make, and deliver — the
return and enable steps were added later. The most recent version of the framework, SCOR 12.0, was released
in 2017 by ASCM.
The updated version includes more “emerging drivers of supply chain success,” covering topics such as
omnichannel, metadata, and blockchain, according to the ACSM. The framework was modernized so that best
practices better align with digital strategies, including new training information and integrated sustainability
standards using the Global Reporting Initiative (GRI). The Digital Capabilities Model (DCM) and the SCOR
digital standard (SCOR DS) were also released in 2019 to address the growing need for digitization in the
SCOR model.
1. Plan: Planning processes include determining resources, requirements, and the chain of
communication for a process to ensure it aligns with business goals. This includes developing best
practices for supply chain efficiency while considering compliance, transportation, assets, inventory,
and other required elements of SCM.
2. Source: Source processes involve obtaining goods and services to meet planned or actual market
demand. This includes purchasing, receipt, assay, and the supply of incoming material and supplier
agreements.
3. Make: This includes processes that take finished products and make them market-ready to meet
planned or actual demand. It defines when orders need to be made to order, made to stock, or
engineered to order and includes production management and bill of materials, as well as all
necessary equipment and facilities.
4. Deliver: Any processes involved in delivering finished products and services to meet either planned
or actual demand fall under this heading, including order, transportation, and distribution
management.
5. Return: Return processes are involved with returning or receiving returned products, either from
customers or suppliers. This includes post-delivery customer support processes.
6. Enable: This includes processes associated with SCM such as business rules, facilities performance,
data resources, contracts, compliance, and risk management.
There are over 250 SCOR metrics in the framework, categorized against five performance attributes:
reliability, responsiveness, agility, costs, and asset management efficiency. Businesses use these to establish
requirements for the supply chain by figuring out which performance attributes to prioritize and which areas
the business can perform at an average pace.
Level 1: Defining scope, including geographies, segments, and context. At this level, the focus is on
the six main process configurations: plan, source, make, deliver, return, and enable.
Level 2: Configuration of the supply chain, including geographies, segments, and products. At Level
2, metrics are high level and evaluated across multiple SCOR processes. This level includes subtype
categories that fall under the “parent” categories found in Level 1.
Level 3: Process element details, identifying key business activities within the chain. At this level,
you can associate any Level 2 process or subcategory with a Level 3 process.
Each digital DCM capability is mapped to elements in the SCOR Digital Standard (SCOR DS), a platform-
agnostic framework that links business processes, metrics, best practices, and technology into one streamlined
format. The SCOR DS introduced 19 emerging practices to the SCOR 12.0 model to further address the
“growing need for digitization of supply chains.” Digital capabilities have complicated supply chain networks,
requiring a shift from focusing on “sequential chains” to “concurrent networks.” With the DCM, linear supply
chains can be transformed into sets of dynamic networks using digitally enabled solutions.
Emerging practice: a process that involves new technology, knowledge or new approaches to
organizing processes
Best practices: up-to-date practices that produce consistent and reliable results with supply chain
performance
Standard: typical practices used throughout the years by multiple businesses across different
industries that have produced consistent results
Declining: out-of-date practices that have been used consistently but are now redundant or obsolete
and act as roadblocks to supply chain performance
Once the performance of your supply chain operations has been measured, you’ll be able to find any
inefficiencies or gaps. A good SCOR process needs to be current, structured, proven, and repeatable. That
means it’s not cutting-edge but it’s not obsolete; the process has clear goals, scope, and procedure; and it’s
proven to be successful in multiple environments repeatedly.