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SUPPLY CHAIN OPERATIONS REFERENCE (SCOR)


MODEL: AN OVERVIEW AND A STRUCTURED
LITERATURE REVIEW OF ITS APPLICATION
Conference Paper October 2013
DOI: 10.13140/2.1.1855.3122

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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
Research Scholar
Department of Mechanical Engineering
Malaviya National Institute of Technology (MNIT)
JLN Marg, Malaviya Nagar, Jaipur
Email: [email protected]
Phone: +91-7877445401 (M), +91-141-2713330 (O)
GUNJAN SONI3*
Assistant Professor
Department of Mechanical Engineering
Malaviya National Institute of Technology (MNIT)
JLN Marg, Malaviya Nagar, Jaipur
Email: [email protected], [email protected]
Phone: +91-8385888855 (M), +91-141-2713330 (O)
*Corresponding author

ABSTRACT
In present time, increasing competition and fast changes in
markets has put supply chains in stress. Thus in order to help
organizations overcome this pressure, supply chain council has
suggested Supply Chain Operations Reference (SCOR) model.
It is a step by step procedure which provides a unique
framework consisting of five processes (plan, source, make,
deliver and return) with process type, processes categories and
decompose processes as three levels which help in
implementing it in an organization, leading to path of
improvement. The practitioners community has given adequate
respect to SCOR model, although academic researchers have
not reaped its benefits fully. Thus in order to advocate the wide
use of SCOR model, this research is carried out. This article
presents a structured literature review on content and research
based methodology of SCM of articles that have used SCOR. It
is believed that article would bring a much needed union in the
practitioners and academic researchers domain.
Keywords: SCOR model,
Performance measurement.

Supply

Chain,

Review,

NOMENCLATURE
Literature review
1. INTRODUCTION
.
Supply chains encompass the companies and the business
activities needed to design, make, deliver and use a product or
service. Business depends on their supply chains to provide
them with what they need to survive and thrive in the present
cut throat globalised environment; hence organisations have
shown interest in supply chain management (SCM), as it
provides them with competitive advantage. Supply chain

SANDEEP2
PG Student
Department of Mechanical Engineering
Malaviya National Institute of Technology (MNIT) Jaipur
JLN Marg, Malaviya Nagar, Jaipur
Email: [email protected]
Phone: +91- 8385995806 (M), +91-141-2713330 (O)
A.P.S. RATHORE4
Professor
Department of Mechanical Engineering
Malaviya National Institute of Technology (MNIT)
JLN Marg, Malaviya Nagar, Jaipur
Email: [email protected]
Phone: +91-9414067895(M), +91-141-2713330 (O)

management is the systematic, strategic coordination of the


traditional business functions and the tactics across these
business functions within a particular company and across
businesses within the supply chain, for the purposes of
improving the long-term performance of the individual
companies and the supply chain as a whole [1].
Christopher [2] defines supply chain as, a network of
connected and interdependent organisations mutually and cooperatively working together to control, manage and improve
the flow of material and information from suppliers to end
users. Increasingly, firms are adopting SCM to reduce costs,
increase market share and sales, and build solid customer
relations [3].
SCM activities can be broadly classified in following three
types:
i. Operational: This is concerned with the routine activities of a
facility to ensure that the more profitable way to fulfil customer
order is executed examples are actions taken in course of
placing and filling orders.
ii. Design: Design mainly focus on decision making regarding
facility role, facility location, capacity allocation, market and
network.
iii. Strategic: Strategic refers to what each process or function
will try to do particularly well. These are decisions at the
strategic level by business managers taken by understanding the
dynamics of supply chain and development and their evolving
objectives. Strategic planning is needed in order to challenge
existing arrangements and to generate radical alternatives [4].
Strategic planning assumes most important role in above three
activities at top level. Operation and design takes SCM at
execution levels. In this context, the current research study was

55

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) - preThe 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


(SCOR) MODEL OF SUPPLY CHAIN COUNCIL

According to supply chain council (SCC) supply chain is


managing supply and demand, sourcing raw materials and
parts, manufacturing and assembly, warehousing and inventory
tracking, order entry and order management, distribution across
all channels, and delivery to the customer. Hence in order to
fulfil very need of evaluating and performance improvement,
SCC as a not-for-profit organization, has developed supply
chain operations reference (SCOR) model. It can be used to
describe supply chains that are very simple or very complex
using a common set of definitions and enabling a common
understanding. It lets companies quickly determine and
compare the performance of supply chain and related
operations within their company or against other companies
[11].
SCOR is the standard industry process reference model which
dramatically improves supply chain operations. It contains a
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

Framework of SCOR model: SCOR Framework help in


understanding how to model supply chain with the use of
SCOR and it provides a unique framework that links business
process, metrics, best practices and technology features into a
unified structure to support communication among supply chain
partners and to improve the effectiveness of supply chain
management and related supply chain improvement activities.
SCOR is having a process framework that delivers the wellknown concepts of business process reengineering,
benchmarking, and best practices into a cross-functional
framework, (see figure 1).
Standard processes: Plan, Source, Make, Deliver, Return
Standard metrics: Perfect Delivery, Cash Cycle Time, SupplyChain Cost, etc
Standard practices: EDI, CPFR, Cross-Training, Sales &
Operations Planning etc
Standard skills: Aptitudes, Experiences, Credentials, Tasks
The main purpose of SCOR framework model is measuring and

55

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

Reliability - achievement of customer demand fulfilment ontime, 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
quickly and can handle external disruptions smoothly hence
enable supply chain to increase/decrease demand within a given
planned period
Cost - objective assessment of all components of supply chain
cost
Assets - the assessment of all resources used to fulfil customer
demand

Description
Top Level

Schematic

Configuration
Level

Process
Element
Level
Implementation
Level

Standard SCOR process plan, source, make, deliver, return are


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.

To address one specific


configuration of process
element
Process
element

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


council)
Level 1.
It tells
about the
scope and
content for
the SCOR.

Level 2.
A Companys
supply chain
can be
configuredto-order at
Level 2 from
core process
categories.

Level 3.
It defines a
companys
ability to
compete
successfully
in its
chosen
markets

Figure (2): SCOR 9.0 Supplychain operation reference


model(Adopted from supply chain council)

Level 4.
This is an
implementation
level (Decompose
process element),
this is used by
Companies to
implement SCM
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
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.

Figure (3): SCOR 9.0: Supply-chain operation reference

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

55

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
council)

Figure (5): Thread diagram (Adopted from supply chain


council)

Above mention are the methods used for measuring


performance of a supply chain through SCOR and its
performance measure mainly focus on reliability,
responsiveness, agility and cost as mention earlier [11]

After performance is measured then the next step is re-aligning


supply chain processes and best practices to fulfill unachieved
or changing business objectives. This re-alignment is achieved
through a combination of various tools that are implemented to
supply chains. These tools are:
Lean Manufacturing analysis
Six-Sigma analysis
Theory-of-Constraints analysis
ISO-9000 style process capture and control
Balanced score cards
Benchmarking

This research has following unique featuresi.


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 publishers 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
for review in this study. The details regarding the
same are presented in Appendix-A at the end of
this paper. These 30 articles are to be used for
further analysis.
. Table 2: Distribution of articles with respect to each of the
search terms
Data
Search criteria
No. of
Base
articles
Emerald Supply chain in All except full text 18
and SCOR in All except full text.
Science
Direct
Taylor &
Francis
Sage

Also there are other combined industrial engineering based


best-practice and techniques which can be used.
The above overview gives an in-depth insight of SCOR and its
application in SCM literature. The other main aspect of this
study is to find out the present status of use of SCOR model in
SCM. This objective can be achieved through a structured
literature review.
3.

Supply chain in abstract, title,


keyword and SCOR in abstract,
title, keyword
Supply chain in abstract, title,
keyword and SCOR in abstract,
title, keyword
Supply chain in title and SCOR in
title
Supply chain in title and SCOR
in abstract
Supply chain in Keyword and
'SCOR in keyword

25

25

0
1
0

In each publication, the criterion which gives optimum search


results was considered and papers were downloaded from
respective database. The relevant papers from the point of view
of present study were shortlisted to be included in final sample
for carrying out literature review; details are given in Table: 3
gives number of articles in each publication.
Table 3: Number of articles in each publication

LITERATURE REVIEW

This section deals with the methodology that was adopted in


various selection of papers and their classification. Table: 2,

55

S. No.

Publisher name

No. of paper

Emerald

16

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)
3
Network
16
[1,3,5,7,13,16,17,18,19,20,
2
Science Direct
5
23,24,27,28,29,30]
3
Taylor & Francis
9
Classification Methodology
The obtained papers were classified based on the following two
major schemes, Soni and Kodali [5] and Soni and Kodali [6] as
content based and research based with relevant modifications to
accommodate the focus of present research.
i.

Level of Analysis: This classification is adopted from


Croom et al. [7] and Gubi et al.[8], which includes
levels of analysis named as Dyad. Chain and
Network.
Performance measurement: The fact regarding Will
the implementation of SCOR enhanced performance
of SCM and Is it reported in the article/paper
obtained.
The
importance
of
performance
measurement is justified by Kaplan [9].
Area of SCM research (SCM issue): This is an
important parameter to classify various studies. This
includes strategy, business processes, information
technology, performance measurement etc. which
gives an idea about the other focal/decision areas of
SCM.
Sample industry: This classification is based on
Burgess [10] and these criterions will thus help in
identifying possible sectors/industry of SCM research.
SCOR utilization level: This data depicts the level of
utilisation of SCOR as a tool and standard practice for
performance measurement /improvement.
Journal, Year and Publications: This analysis will
give an birds eye view of all papers in a particular
journal, frequency of papers and their year of
publication. This not only gives a good understanding
of growth of concern area but also gives new topic to
be explored.

ii.

iii.

iv.

v.

vi.

4.

RESULT AND DISCUSSION

Evaluation of the papers is carried out on the basis of the


classification scheme adopted as research methodology. There
are total 30 papers found suitable for carry out the structured
review. Appendix-I refer to the article that satisfies the
parameter of analysis.
Level of analysis: The papers were classified on the basis of
level of analysis. Table 4 gives articles classified by level of
analysis. Most of the papers deal with the network level.

S.N.
1
2

Table 4: Articles classified by level of analysis


Level of
No. of
Reference paper
analysis
paper
(Appendix I )
Chain
9
[2,4,6,8,10,14,22,25,26]
Dyad

[9,11,12,15,21]

Performance measurement: In this activity focus is on the


reported performance measurement of supply chain with the
use of SCOR. Table 5 gives classification based on
performance measurement of supply chain for SCOR.From
Table 5 it is clear that the articles were not reporting the
performance measurement of supply chain in numerical figures
directly, but their main focus is to elaborate the use of SCOR as
a tool.
Table 5: Classification based on performance measurement of
supply chain for SCOR
S.
Performance
No. of
Reference paper
N.
measurement
papers
(Appendix I )
1
YES
6
[17,8,10,11,15,30]
2

NO

24

[1,2,3,4,5,6,9,12,13,14,
16,17,18,19,20,21,22,2
3,24,25,26,27,28,29]

Area of SCM research (SCM issue): Table 6 gives Articles


classified by SCM issue. In Table: 6, there are four broad issues
of SCM are taken, these include information technology,
performance, strategic and business processes with application
of SCOR model. It is very clear from the study that maximum
utilization of SCOR is in the area of SCM performance
measurement and improving the SCM. Information technology
and strategic management are also important areas need to be
considering when an organisation is ready to apply SCOR
model to its supply chain.
Table 6: Articles classified by SCM issue
S.N. Issue
No. of Reference
paper
papers
(Appendix I )
1
Information
6
[1,10,19,20,24,25]
technology
2
Performance
13
[2,3,6,7,9,11,15,16,17,
18,22,26,30]
3
Strategic
8
[4,8,12,13,21
,23,28,29]
4
Business
3
[5,15,27]
processes
Industry: Articles classified by industry are given in Table 7.
The study shows that manufacturing industries are biggest
follower of the SCOR model. SCOR is as a tool of wide
applicability in number of areas; hence 40 percent articles did
not include any details of particular industry, such papers are
classified under a separate category called Not available from
Table: 7.
Table 7: Articles classified by industry
Industry
No. of
Reference paper (Appendix I )
paper
IT
1
[1]

55

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)
Journal of Computer Integrated Manufacturing, IJOPM:
manufacturing
12
[2,3,6,7,8,9,10,18,19,20,25,30]
International Journal of Operations & Production
SME's
1
[11]
Management, IJPE: Int. J. Production Economics, IJPPM:
NGO's
1
[12]
International Journal of Productivity and Performance
Management, IJPR: Int. Journal of Production Research,
N/A
11
[4,5,13,15,16,17,22,23,26,27,28]
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
SCOR and its applicability as an academic study have
evaluating the paper on firm level or wide industry level
tremendous potential. Although the SCM literature reviews
approach of author. It is evident from Table 8 that both are
with SCOR model focus are very few in number. There are few
equally reported in research papers. This also proves the point
aspects which are highlighted through this study.
that SCOR model can be applied at all levels for most of the
As SCOR model is mainly related to SCM performance
supply chains.
measurement and performance improvement. Most of the
Table 8: SCOR Utilization level for SCM
research is being carried out at the network level. However, it is
Level
No. of paper
Reference paper
believed that with the impact of changes due to globalization,
(Appendix I )
use of SCOR will definitely increase the responsiveness and
Firm
15
[1,3,7,8,9,11,14,16,19,
efficiency of supply chains.
20,21,22,25,26,30]
Industry
15
[2,4,5,6,10,12,13,15,
5. CONCLUSION
17,18,23,24,27,28,29]
This research is an early attempt to provide a brief
overview of SCOR model and supply chain management.
These efforts will help the supply chain to achieve its best
strategic fit. The study is carried out by selecting thirty
papers from major databases namely Emerald, Science
Direct and Taylor & Francis. Articles are further analyzed
on parameters like level of analysis, performance
measurement, area of SCM research, industry, and SCOR
utilization level. The study shows that manufacturing
industries are biggest follower of the SCOR model. Most
of the papers deal with the network level. It is very clear
from the study that maximum utilization of SCOR is in the
area of SCM performance measurement and improving the
SCM.
In this structured literature review, the findings is be very
useful not only for researchers but also for business
establishments and managers. This paper also highlighted
the present status of the SCOR model and brings out areas
to focus for SCM performance improvement through
SCOR. The scope of the study can be further enhanced by
including more articles, case studies from operation
management, business and operation research.

Journal, Year and Publications: Table: 8 give the details


about the number of papers published in a journal.

S.N.
1

Table 8: Journal v/s no. of articles


Journal
No. of Reference
papers

Year

2009
[11]
2
2005
[5]
3
[20]
2005
4
[12]
2011
5
[28]
2011
6
[23,24,25]
2011,12,14
7
[3]
2004
8
[18,19,21]
2008,11,09
9
[7,8]
2006,07
10
[22,29,30]
2011,10,07
11
[10]
2008
12
[1]
2008
13
[9,16]
2008,12
14
[2]
1997
15
[26]
2012
16
[17]
2009
17
[27]
2011
18
[4,6,13,14, 2004,06,11
SCMIJ
5
15]
,11,12
Note: BIJ: Benchmarking: An International Journal, BPMJ:
Business Process Management Journal, CIE: Computers &
Industrial Engineering, DPM: Disaster Prevention and
Management, EIS: Enterprise Information Systems, IJCIM: Int.
BIJ
BPMJ
CIE
DPM
EIS
IJCIM
IJOPM
IJPE
IJPPM
IJPR
IMDS
JEIM
JMTM
LIM
OJMPOR
PNS
PPC

1
1
1
1
1
3
1
3
2
3
1
1
2
1
1
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)
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