The Supply Chain Operations Reference Model - dummies

The Supply Chain Operations Reference Model

By Daniel Stanton

Part of Supply Chain Management for Dummies Cheat Sheet

The Supply Chain Operations Reference (SCOR) is a process framework maintained by the APICS Supply Chain Council. SCOR focuses on manufacturing supply chains but has been adapted for retail and service supply chains too.

SCOR organizes all the processes in a supply chain into six groups:

  • Plan: Decide what to make, when to make it, and where to make it.
  • Source: Buy the things that you need to make your products.
  • Make: Manufacture your products.
  • Deliver: Sell your products and get them to your customers.
  • Return: Take products back when they’re defective or need to be recycled.
  • Enable: Do everything else that is important for making a supply chain work but that doesn’t fit into one of the other groups.

The SCOR model defines the five key performance attributes of a supply chain:

  • Reliability: Whether the supply chain can fill customer orders.
  • Responsiveness: How long it takes to fill orders.
  • Agility: How well the supply chain responds to changes.
  • Costs: How much it costs to operate the supply chain.
  • Asset management efficiency: How well the supply chain uses the assets it has.

Each attribute includes metrics that allow you to benchmark supply chain performance and track improvements over time.