Introduction to SCOR

(Supply Chain Operations

Reference)

April 2012
Enrico Camerinelli
Sr. Analyst
Page 1 Page 1 ©2012 Aite Group LLC.
Enrico Camerinelli
• Sr. Analyst at Aite Group
• Current research focuses on Global Transaction Banking,
Cash & Trade Management, and Supply Chain Finance
• Formerly Executive Director of the Supply Chain Council
• VP for Enterprise Applications at META Group
• Pre-sales marketing manager at J.D. Edwards
• Supply Chain and Plant Manager at Lear Corporation and
Arvin Exhaust
• Co-Founder of the Supply Chain Finance Council and
member of the Italian delegation of UN/CEFACT

Page 2 ©2012 Aite Group LLC.

 Agenda

• The SCOR model

• SCOR and BSP face-to-face
• Linking the physical and the financial valuechains

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 SCC Organization - Chapters

SCORboard

Greater China, European Chapter

Brussels, Belgium
Shanghai North America Chapter
Japan Chapter Washington D.C.
Tokyo, Japan

South East Asia Chapter

Singapore

Brazil Chapter
Southern Africa Cape Town,
Australia/New Zealand Chapter South Africa
Sydney, Australia

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Supply Chain Operations Reference-Model
(SCOR®) Overview

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 SCOR -
5 distinct Management Processes
Plan

Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source

Return Return Return Return Return Return

Return Return

Suppliers’ Supplier Your Company Customer Customer’s

Supplier Customer
Internal or External Internal or External

SCOR Model

Processes Metrics Best Practices

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 SCOR Framework Levels

Supply Plan
Chain Level-1 Sets Scope and
Context, Geographies, Source Make Deliver
Segments and Products
Return

M1 M2 M3 Level-2 Identifies Major

Make Make Make
Build to Stock Build to Order Engineer to Order Configurations within
Geographies, Segments and
Products
Level-3 Identifies key
business activities within a
configuration

M2.01 M2.02 M2.03 M2.04 M2.05 M2.06

Schedule Production Issue Product Produce & Test Package Stage Product Release Product to
Activities Deliver

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Example of SCOR utilization

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 SCOR Process Modeling – Mapping AS-IS
material flows

Manufacturing company that

Produces against a 15-days Supplies raw materials in
forecast bulks from the Far East
against a monthly forecast
Manufacturing
Company
RM Supplier

European Supplier
of components Ships weekly finished goods
Warehouse to a Distribution Warehouse
Pulls components from based in Central Europe.
France based on production
volumes

Page 10 ©2012 Aite Group LLC.

 SCOR Process Modeling – Mapping AS-IS
material flows

Manufacturing company that

Produces against a 15-days Supplies raw materials in
forecast bulks from the Far East
M1 against a monthly forecast
Manufacturing
Company
D1
S2 S1 RM Supplier

D1
European Supplier
of components S1 Ships weekly finished goods
D2 Warehouse to a Distribution Warehouse
Pulls components from based in Central Europe.
France based on production
volumes

Page 11 ©2012 Aite Group LLC.

SCOR Metrics

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SCOR Best Practices

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SCOR and BSP face-to-face

Page 14 ©2012 Aite Group LLC.

 SCOR and BSP

Plan

Source Make Deliver

Return

BUY SHIP PAY

Page 15 ©2012 Aite Group LLC.

 SCOR and BSP

Plan

Source Make Deliver

Return

BUY SHIP PAY

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SCOR and BSP

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 SCOR-Plan
Plan
Source Make Deliver

Return

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 SCOR-Source
Plan
Source Make Deliver

Return

Page 19 ©2012 Aite Group LLC.

 SCOR-Make
Plan
Source Make Deliver

Return

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 SCOR-Deliver
Plan
Source Make Deliver

Return

Page 21 ©2012 Aite Group LLC.

 SCOR-Return
Plan
Source Make Deliver

Return

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Linking the physical and the financial value
chains

Page 23 ©2012 Aite Group LLC.

Physical and financial value chain metrics

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Physical and financial value chain metrics

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End-to-end physical value chain processes
Value Chain Processes

Source-to-Pay

Source Negotiate Purchase Purchase Send

Select supplier
suppliers sales order order purchase
and goods
terms request approval order

Order-to-Cash
Turn into
Send sales order
Transport Ship goods Receive order
invoice and confirm

Fulfill-to-service
Prepare
Manage Produce
to load
inventory goods
shipment

Source-to-Pay
Offload, Generate
Receive
Receive goods inspect, and and send
invoice
store goods payment

Return
Order-to-Cash
Reconcile Process
Collect Receive
and payment
payment payment advice
account advice

Page 26 ©2012 Aite Group LLC.

Extracting Liquidity From Value Chain Processes
Applying SCF Components and Extracting Liquidity

Source-to-Pay

Commodity Purchasing
Buyer finance
finance card

ECA supplier Order-to- Cash

financing
Purchase Distribution Pre- shipment
Guarantees order finance finance
commitment
Letter of credit

Post- shipment Fulfill-to- Service

finance
Leasing
Forfaiting Warehouse Asset- based
finance lending
Warehouse
finance Project finance

Confirming BPO
Cash on Source-to-Pay
delivery
Buyer- driven Invoice
payables financing/discounting Reverse
factoring

RETURN
Order-to- Cash
Warehouse
finance Invoice Receivables
financing/discountin purchase

Page 27 ©2012 Aite Group LLC.

Aite Group: Partner, Advisor, Catalyst

Aite Group (pronounced eye-tay) is an independent research and

advisory firm focused on business, technology and regulatory issues
and their impact on the financial services industry.

Enrico Camerinelli- Senior Analyst

ecamerinelli@aitegroup.com
+39.039.21.00.137
www.aitegroup.com

Page 28 ©2012 Aite Group LLC.