Scor Model

Topics: Management, Inventory, Supply chain management Pages: 5 (1445 words) Published: November 18, 2009
SCOR Model
The SCOR Model, also referred to as the Supply Chain Operations [pic]Reference model, is a type of tutorial used to improve your knowledge and usage of the [pic]Supply Chain Management system. It is more of a management tool. The Supply Chain Management Council has designed the SCOR Model in collaboration with other distributors, manufacturers, suppliers and logistics service providers, and therefore the model is best suited for people in this category of business.

The SCOR Model compares itself with the best practices in the industry and constantly improvises techniques for distributors, manufacturers and logistic [pic]service providers.

This allows the companies using the SCOR Model to compare and learn from their competetitor’s. The SCOR Model also has a number of additional abilities. The Supply Chain Reference Model can function as a performance model that has 4 levels, which are in turn shaped like a pyramid. These four levels can literally walk a company through each step of performance, and guides them through the model. This pyramid is the core of the Supple Chain [pic]Reference Model.

What Can the Supply Chain Reference Model do to help a Business grow?

It can characterize the [pic]best practices and apply it to your [pic]business by further improvising it. It is futuristic in its functionalities, as it is already improvising on what is best in [pic]the industry. It also quantifies the performance of your competitors and compares them to you. It can establish targets for you based on this comparison.

How does the Supply Chain Reference Model achieve this?

It uses predetermined and standardized metrics to measure the values which are accurate. It works on a framework of established parameters. It aligns itself with software and current technologies.

The main aim of the Supply Chain [pic]Reference Model revolves around the [pic]business and all the phases it needs to go through to attain customer satisfaction. The four levels in the pyramid are Plan, Source, Make and Deliver. They are all customer-centric, and work towards the goal of attaining customer satisfaction, which is the primary objective of any [pic]business.

What is the scope of the Supply Chain Reference Model?

The SCOR Model includes all the transactions at the customer level into its spectrum of functioning, from invoicing to product or service delivery, and market interactions. The SCOR Model does not only address one section like the Sales, Marketing, or product development alone. It ranges across multiple and complex industries. There are three process levels, and none of these levels focus on how the [pic]business should go about conducting its operations or changing its functions. In fact, the SCOR Model makes the [pic]business expand its functions to the fourth level which extends some organization specific processes, systems and practices.

Many businesses face challenges when it comes to keeping their customers happy in terms of supply. Many manufacturers function traditionally by keeping high inventories which result in high costs. The Supply Chain [pic]Reference Model addresses this problem directly by integrating the best processes across [pic]the industry, and not only within the specific [pic]business window. When you have the experience of good companies , as well as successful companies at hand to compare and contrast, following their example could result in the cutting of inventories to less than 50%. You can easily avoid a surplus and cut costs, increasing the process of cost savings.

The SCOR Model establishes predetermined values for all the levels such as planning, sourcing, making deliveries, and even returns. The raw materials also go through the same process. The SCOR Model establishes the limits for each step in the process, and these limits are based on [pic]the industry standards which in turn are derived from the [pic]best practices shared across [pic]the industry. Even...
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