Benefits and Limitations of The SCOR Model in Automotive Industries

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MATEC Web of Conferences 200, 00019 (2018) https://doi.org/10.

1051/matecconf/201820000019
IWTSCE’18

Benefits and limitations of the SCOR® model in Automotive


Industries

Radouane LEMGHARI1, a, Chafik OKAR2, and Driss SARSRI1


1
The Innovative Technologies Laboratory, National School of Applied Sciences, 90000, Tangier, Morocco
2
The Higher School of Technology of Berrechid, Hassan the 1st university, 26000, Settat, Morocco

Abstract. The automotive industry's supply chain has been extensively researched but has tended to
focus on the component production sections of the chain. Indeed, the automotive industry needs a
structured model that encompasses the entire fragmented, uncertain and complicated industry. For this
reason, the SCOR® model was chosen in this study because it contains well-defined and standardized
processes and metrics for performance measurement and comparative analysis of the entire supply
chain and not only internal processes. In this context, the objective of this paper is to concretize the
application of the SCOR® model in an automotive company by following the steps and guidelines
described by the supply chain council that designed this model. Then, several contributions and
benefits of the application of this model in the automotive sector will be raised based on this case
study and especially on the interviews conducted with the various practitioners and specialists in the
supply chain. On the other hand, a list of limitations and difficulties encountered during and after the
implementation of this standard will also be collected. Although this study is primarily oriented
towards a university audience, it can also be interesting and useful for practitioners, who will be able
to gain an understanding of the purpose of the existing research and to have access to a real-life
example of the application of this model in the automotive sector.

1 Introduction On the other hand, to meet customer needs, they must


be designed and organized appropriately [8]. Logistics
The automotive industry has complex supply chains can be defined as a key factor of competition in the
because of the nature of the products they make up. A automotive industry due to the increasing number of
single car can have up to 15,000 individual pieces and in variants and options of the model. With the growing
the event that it is not possible to deliver a single piece, it importance of logistics [9], the evaluation of logistics
can slow down or stop a production line. Nowadays, effectiveness and efficiency is gaining increased attention
many vehicles together in Europe and North America [10]. For this reason, the automotive sector characteristics
involve high-tech components manufactured in Asia- and current performance measurement practice have been
Pacific. In 2017, they represented 40% of the cost of a car reviewed and analyzed to determine the main
compared to 10% in 2004 [1,2]. characteristics of an effective model for an automotive
The automotive industry is a highly globalized sector, firm [9,10]. The main assumption is that automotive firm
where for many actors there is competition from around requires tools specifically designed and tailored to their
the world. Faced with the increase in supply and the characteristics and needs [10].
strong pressure on prices, reinforced by the power of There are several models have been applied for
Asian groups (Toyota, Hyundai, etc.) and the arrival of business analysis. The SCOR® model is one of the most
new players from emerging countries (Geely, Tata famous of them that has been widely applied by
Group, etc.), many companies seek to optimize their practitioners [11]. Thus, in order to improve business
value chain in order to remain competitive [3] In the systems, the return on investment, to deal with
supply chain of the automotive industry, many factories competitiveness and optimize the efficiency of their
are working together to manufacture a product (car, supply chain, some global companies apply the SCOR®
motor, etc.). The automotive industry is relevant in terms model. The SCOR® model develops a systems approach
of influence on the economy as well as technology. As to identify, evaluate and monitor supply chain
Humphrey and Memedovic [4] have pointed out, the performance [12]. The model not only provides an
automotive sector is global and specified as a capital- opportunity to see how the business operates but also a
intensive industry with vertical integration and common frame of reference and language across the
economies of scale [5]. He was responsible for the supply chain [13,14].
development of technological innovation and Given its increasing use among professionals and
management, as well as the original major change in academics who are directly involved in supply chains, the
industrial production processes [6,7]. SCOR® model was used because of its process
a
Corresponding author: [email protected]

© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0
(http://creativecommons.org/licenses/by/4.0/).
MATEC Web of Conferences 200, 00019 (2018) https://doi.org/10.1051/matecconf/201820000019
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orientation and [15]. It has also become the common customer relationships, product and market surrounding
language for benchmarking and comparison of supply customer orders, purchase orders, work orders, return
chains and supply chain management practices [15]. authorizations, forecasting and replenishment orders. It
The purpose of this document is the application of the also includes physical movement of raw materials, work
SCOR® model in a car company and to raise the different in progress, finished goods and merchandise return [15].
contributions and benefits of its application in this very The SCOR® model has three levels of process detail.
dynamic sector. On the other hand, a list of limitations In practice, Level 1 describes the number of supply
and difficulties encountered in the implementation of this chains, how their performance is measured, and
standard will also be collected. At first, a literature necessary competitive requirements. Level 2 presents the
review of the supply chain operations reference model configuration of the planning and execution strategies in
and the performance measurement in automotive the material flow, involving standard categories such as
industries is performed in Section 2. In Section 3, the "make-to-stock", "make-to-order" and "engineer-to-order
methodology followed in this research is presented, and ". Level 3 considers the business processes and system
in Section 4, the different stages of a practical case study functionality used to process sales orders, purchase
of the automotive industry are developed. The benefits of orders, work orders, return authorizations, replenishment
the application of this model resulting from this case orders, and forecasts. Level 4 process details are not
study and a roadmap for the success of this project are contained in SCOR® but must be defined to implement
illustrated in Section 5. Finally, in Section 6, we conclude improvements and manage processes. Advanced users of
with a list of limitations and difficulties encountered the framework have defined process detail as far as Level
during and after the implementation of this standard as 5, software configuration detail [15].
well as some closing remarks. Organizations using the model SCOR® performance
metrics can compare their performance levels compared
2 The Supply Chain Operations to other organizations in the supply chain using a
benchmarking tool called SCORmark. The SCORmark
Reference (SCOR) model database contains historical data from over 1000
companies and 2000 supply chains. The benchmarking
In SCOR®, the integrated processes of PLAN, SOURCE, process using the SCORmark can be performed by the
MAKE, DELIVER, RETURN and ENABLE from the following steps: (1) defining the supply channels to be
supplier’s supplier to the customer’s customer represent compared; (2) measuring the internal and external
supply chain management. Elements of business process performances; (3) compares the performance to relevant
engineering, metrics, benchmarking, leading practices, industrial companies; (4) establish competitive demands;
and people skills into a single framework are combined (5) calculate the opportunity value of improvement
with SCOR® [15]. The version 4 was the first to include [18,19]. To facilitate the comparison, the SCORmark
return process in the supply chain. The Revisions of the stratifies the process performance according to three
model are made by the members of the Council when it is points [19]:
determined that modifications need to be made to • “Superior”: is the performance (median value) on a
facilitate the use of the model in practice [16]. The specific indicator attained by 10% of the best classified
release of version 11 for access, as well as the SC’s comparing to the total of the supply chains
incorporation of the new material into all SCOR® training surveyed;
and certification programs, are announced by the • “Advantage”: is the performance (median value)
Supply-Chain Council (SCC), the global not-for-profit among the top 10 companies and the median of all the
organization supporting supply chain professionals and supply chains considered;
educators [17]. This major update includes Enable • “Parity”: is the performance (median value) of all
Process, Best Practices, and Redesign Costs. These the supply chains considered.
updates bring the current model with the way these The APICS1 association announced the launch of the
processes, practices, and measures are needed to SCOR model version 12.0. Developed by a panel of
practitioners of the supply chain that implement the international supply chain experts, this latest version of
model [17]. SCOR® describes the business activities SCOR incorporates Omni-channel, metadata, block chain
related to all phases of the satisfaction of a customer and other emerging engines that supply chain
request. The model itself is structured around primary professionals are using today. SCOR has been the global
management processes, and on SCOR® version 11, inter-sectorial standard for supply chain excellence over
ENABLE is advanced to one of these processes, so there the last 20 years and, with this update, will continue to
are six: PLAN, MAKE, SOURCE, DELIVER, support ways to measure, improve and communicate the
RETURN, and ENABLE. Using these process definition supply chain's business performance [20].
blocks, SCOR® can be used to model supply chains that
are very simple or very complex using a common set of
definitions in disparate industries. In fact, public and 3 Experimental Method
private organizations and companies around the world The SCOR model is composed of several parts: a
use the model as a basis for projects to improve the modeling of the processes of the SC with diagrams and
global supply chain [17].
These processes focus on performance management,
information, politics, the inventory strategy, capital, 1
APICS is the association for supply chain management
transportation, physical logistics network, regulatory and
and the leading provider of research, education and
other management processes to enable Planning and
execution of supply chain activities. SCOR® covers all certification programs that elevate supply chain
excellence, innovation and resilience.

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for each process SCOR proposes metrics; based on these  Product rate with overstock: This performance
metrics the performance of the supply chain is evaluated. metric represents the percentage of products
SCOR then provides a basis for comparison with the best with a stock greater than one month.
global logistics chains, this is the benchmarking part.  Unusual transportation usage rate: This
Lastly, SCOR proposes the best practices to overcome performance metric represents the percentage of
the differences in performance on the various processes. use of exceptional transportation.
Indeed, the processes are modeled with three standard  Delivery rate with complete documents: This
levels and two levels specific to the studied society: performance metric represents the percentage of
-Level 1 corresponds to the upper level of the supply deliveries whose documents are complete and
chain. It is divided into 6 processes: Plan, Source, Make, accurate, with no failures.
Deliver, Return and Enable. Above we represent the four performance metrics of
-Level 2 is a breakdown of Level 1 according to major the third level that is operational, these metrics study the
production categories and business strategy. The choice execution of our process:
of SCOR level 2 processes depends on the production  Truck fill rate: The filling percentage of the
strategy. Processes related to the "make-to-stock" delivery units.
category relate to production processes related to sales  Late delivery rate of suppliers: This
forecasts. There are two other categories: the "Make-to- performance metric represents the rate of
Order" category for order-related production and the products received late by suppliers.
"Order-Engineered" category where the product is  Rate of products in rupture: This performance
designed for a specific customer. metric represents the number of products for
-Level 3 describes each process that makes up Level 2 which there are breaks in relation to the total
processes with the process diagram ". number of products that exist.
Metrics are classified with the same levels as processes  Late delivery rate of customers: This
and with performance attributes: reliability, performance metric represents the rate of
responsiveness, agility, costs and assets.
products delivered late to customers.
The study was based on the analysis of 3 performance
The applied experimental method comprises five
metrics that belong to level 1 of the SCOR model
stages:
planning process, they are also used to measure the
Stage 1: Select a company in the automotive sector. this
performance of the company's logistics chain, and
company is a supplier of metal parts to a car
calculated in based on the different balance sheets of the
manufacturer. the optimization of the planning process
company.
for this company is very important given the criticality of
The three Metrics of the level 1 chosen are:
this process in the automobile chain that has to release a
 Inventory Days of Supply (IDS): This metric vehicle per minute. The improvement of the logistics
answers the question: how many days it takes to chain is one of the major interests of companies. This
sell the entire inventory. It measures the average task, despite its complexity, remains indispensable for
duration between the acquisition and the sale of any evolving company. But before any improvement, a
goods. For a manufacturer, it covers the amount detailed analysis of the current state of performance
of time between the purchase of raw materials indicators is required. These must be selected beforehand
and the sale of the finished product. according to appropriate criteria.
 Days of sales outstanding (DSO) : This KPI Stage 2: Application of the SCOR model to the
measures the average number of days that a automotive industry;
company takes to collect revenue after a sale has The second stage is partially derived from the method
been made. It is often determined on a monthly, proposed by the SCC[15]. The SCOR model used is
quarterly or annual basis and can be calculated SCOR version 11.0 [17]. The 3 sub-stages are as follows:
by dividing the amount of accounts receivable in  Stage 2.1: scope determination: the
a given period by the total value of credit sales determination of the practical case which is the
in the same period, and multiplying the result by most representative (number of activities,
the number of days in the measured period volume of orders and turnover)
 Days of payable outstanding (DPO): This  Stage 2.2: implementation of the SCORCARD
performance metric indicates how long it takes of the performance metrics
for a company to pay its commercial creditors'
 Stage 2.3: “AS IS” of the process: “process
bills, such as suppliers. diagram”
Regarding the second level of the SCOR model, the Stage 3: Using Benchmarking to compare performance
study was based on 5 performance metrics, which allow metrics for the planning process
analyzing in a very precise way the current situation of Stage 4: Analysis and selection of Best Practices
the processes. These metrics of the level 2 are:
Stage 5: Identification of the benefits and limitations of
 Perfect order fulfilment: The percentage of the SCOR model in automotive industries
orders complying with delivery performance
with complete and accurate documentation and
no delivery damage. 4 Application to the case study
 Product rate with insufficient stock: This
The following section describes the results of the
performance metric represents the percentage of
application of the SCOR model to the automotive sector.
products whose stock is less than five days.
4.1 Stage 2.1: scope determination

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The most critical process of the company's supply chain Performance


Product rate with insufficient stock
is highlighted in stage 1. All activities in the planning metric
process will be detailed to highlight the different gaps Description The percentage of products whose stock is less
than five days
penalising the overall performance of the supply chain. Formula number of products with a stock less than five
The study focuses in particular on this process, also seen days / total number of products
as the counter-time (5 months average for each process), Unit %
the other processes will be the subject of future projects. Improvement
Minimize
direction
3.2 Stage 2.2: SCORCARD performance metrics
Table 6. KPI: Product rate with overstock
Stage 2 describes the preparation of a SCORCARD Performance
Product rate with overstock
composed of 12 metrics. Among these 12 metrics: one metric
(Perfect order fulfilment) is already used by the planning Description the percentage of products with a stock greater
department, and five are relevant in terms of application than one month
Formula number of products with a stock greater than one
in the automotive sector. The rest of the metrics are month / total number of products
essential to evaluate the profitability and the efficiency of Unit %
the studied process. In the following, the performance Improvement
Minimize
metrics of the planning process are presented in detail direction
(description, calculation formula, unit, improvement
direction): Table 7. KPI: Unusual transportation usage rate

Table 1. KPI: Inventory Days of Supply (IDS) Performance


Unusual transportation usage rate
metric
Performance Inventory Days of Supply (IDS) Description The percentage of use of exceptional transport
metric Formula number of delivery with unusual transport / total
Description The number of days it takes to sell the entire number of deliveries
inventory Unit %
The average duration between the acquisition and Improvement
Minimize
the sale of goods direction
Formula value of stock / average cost of products sold per
day Table 8. KPI: Delivery rate with complete documents
Unit Days
Improvement Performance
Minimize Delivery rate with complete documents
direction metric
Description The percentage of deliveries whose documents
Table 2. KPI: Days of sales outstanding (DSO) are complete and accurate, with no failures
Formula number of delivery with complete document /
Performance total number of deliveries
Days of sales outstanding (DSO) Unit %
metric
Description The average number of days a business takes to Improvement
Maximize
collect revenue after a sale has been made direction
Formula (month-end total outstanding incl. taxes x number
of days) / (Total turnover tax for the period) Table 9. KPI: Truck fill rate
Unit Days
Improvement Performance
Minimize Truck fill rate
direction metric
Description The filling percentage of the delivery units
Table 3. KPI: Days of payable outstanding (DPO) Formula number of units delivered / total capacity of
trucks
Performance Unit %
Days of payable outstanding (DPO) Improvement
metric Maximize
Description The number of days it takes a business to pay its direction
commercial creditors bills
Formula (Tax receivables / annual turnover incl. taxes) * Table 10. KPI: Late delivery rate of suppliers
360 days
Unit Days Performance
Late delivery rate of suppliers
Improvement metric
Minimize Description The rate of products received by our suppliers late
direction
Formula number of units arriving late / total number of
Table 4. KPI: Perfect order fulfilment units delivered by our suppliers
Unit %
Performance Improvement
Perfect order fulfilment Minimize
metric direction
Description The percentage of orders received by the
customer with the right quantities ordered in Table 11. KPI: Rate of products in rupture
terms of quantity and reference
Formula number of orders fulfilled / total number of orders Performance
Rate of products in rupture
Unit % metric
Improvement Description The number of products for which there are
Maximize breaks in relation to the total number of products
direction
that exist
Table 5. KPI: Product rate with insufficient stock Formula number of products out of stock / total number of

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products determine since it is not necessary to map the process


Unit % ourselves.
Improvement Level 4 describes the activities performed within the
Minimize
direction
supply chain, companies implement industry, and/or
Table 12. KPI: Late delivery rate of customers location specific processes and practices to achieve the
required performance [17]. Level 4 can be achieved by
Performance
Late delivery rate of customers
detailing a Level 3 process. Although Level 4 is not
metric detailed in the SCOR® model, SCC identifies Level 4 as
Description This performance indicator represents the rate of the definition of firm-specific strategic practices to gain a
products received by our late suppliers
Formula number of units delivered late / total number of
competitive advantage [21].
units delivered to our customers Advanced users of the framework have defined
Unit % process detail as far as Level 5, software configuration
Improvement detail [17]
Minimize
direction
5 Benchmarking
After defining the metrics on the dashboard, we
preceded the collection of data to calculate their values;
the result obtained is presented in the following table: The dashboard of the SCOR® model contains standard
performance metrics that are prioritized in several levels
Table 13. Current values of performance metrics of the so that the lower level metrics can be used to calculate
planning process the higher-level metrics. These KPIs are divided into five
axes of performance, which are:
KPI
Actual  Reliability: Delivery performance.
value  Reactivity: Delay of command execution.
Inventory days of Supply (IDS) 85  Flexibility: Flexibility to command variations.
Level
Days of sales outstanding (DSO) 15
1  Logistics costs: Costs of sales and logistics.
Days of payable outstanding (DPO) 10
 Asset management: Financial flows and working
Perfect order fulfilment 65,82%
capital.
Product rate with insufficient stock 26%
The benchmarking of SCOR® model is done by
Level Product rate with overstock 32%
2
comparing the indicators of level 1, 2 and 3, however, it
Unusual transportation usage rate 34%
is not necessary to apply the three performance levels in
Delivery rate with complete
documents
67% each axis. That is why it would be better to prioritize
Truck fill rate 88,46% these axes in order to put the level indicators 1 for less
Level Late delivery rate of suppliers 19,06% important axes and up to level 3 for the most important.
3 Rate of products in rupture 10% The notations S, A and P are used by the SCOR®
Late delivery rate of customers 10% model to prioritize the axes:
 S: « Superior » corresponds to the 90th
percentile: This means that it will line up with
4.3 Stage 2.3: Process "AS IS"
10% of the best-performing companies.
 A: « Advantage » corresponds to the 70th
Stage 3 describes the modelling of the process ("AS
percentile: The objective will be to reach the
IS") and like presenting before the SCOR® model
performance of 30% of the best companies.
contains three levels of process detail. In practice, Level
1, the scope and content of a supply chain are defined. At  P: « Parity » corresponds to the 50th percentile:
Level 1, performance objectives based on supply chain The objective is to exceed 50% of the best
competition are defined [17]. companies.
Business planning is a formalized process of decision- In order to evaluate the process performance, it will
making which develops a representation of the future be very interesting to complete the indicators that were
state of the enterprise and specifies the modalities of already in place by other indicators proposed by the
implementation of this will. SCOR® model, which correspond to its strategic axes.
Level 2 presents the configuration of the planning and According to the baseline with which to compare,
execution strategies in the material flow, involving there are three types of benchmarking:
standard categories such as "make-to-stock", "make-to-  Comparison on a historical basis: monitoring
order" and "engineer-to-order " [17]. indicator development.
Each basic process of the SCOR® model is broken  Internal Benchmarking: is the comparison
down into several sub-processes or also called a level 2 between companies of the same group.
process.  External Benchmarking: The comparison is made
Level 3 considers the business processes and system by external organizations.
functionality used to process sales orders, purchase The SCOR® model proposes the external
orders, work orders, return authorizations, replenishment benchmarking because the more the reference database
orders, and forecasts [17]. Level 3 of the SCOR® model will be larger, the results will be significant. The
is provided for reference. It is therefore sufficient to objective here will be to line up with the best companies
choose a process of level 2 and to obtain the processes of in the automotive sector basing on logistics activities.
the level 3 associated from the references, so it is easy to These indicators have clear definitions and a link to
process activities that provide a basis for effective
benchmarking. This capability enables companies to

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benchmark their supply chain performance using the suppliers, in particular, procurement lead time, lot size
same methods currently used to compare the company's and the minimum amount to be supplied. To achieve the
performance. Through benchmarking, managers can go best results in terms of the procurement planning process,
beyond performance measurement and understand this it is necessary to have reliable data that will be used to
performance against the backdrop of the performance of establish an optimal supply plan. That means to supply
their industry peers [17]. The established scorecard the required amount at the right time with the lowest
containing the benchmarking values provided by the possible cost. Currently, this process represents several
SCOR standard as well as the improvement objectives for anomalies; the net requirement calculated by the MRP
each metric are presented in table 14. system is incorrect, therefore unreliable for 50% of the
articles. This means that the actual consumption observed
Table 15. Benchmarking results during a period of production is largely different from the
calculated requirement.
Benchmarking -Procurement process S1 and S2: These two processes
are execution processes. They ensure the implementation

Objective
Advantag of procurement plans. We start by checking the daily
Superior
KPI
Parity

calendar receptions. Once a truck arrives, the unloading


e

is done in a temporary area without recourse or a


qualitative and quantitative control procedure or a billing
Inventory days of Supply procedure. Among the anomalies noticed in these
80 42 13 A
(IDS) processes, there is the lack of enough space allocated for
Level Days of sales outstanding
15 10 4 A
storage of PD, which forces to stack the pallets outdoor.
1 (DSO) Consequently, we often face the loss of the inaccuracy or
Days of payable
11 5 2 A the identification of certain products because of the wind;
outstanding (DPO) on the other hand, there is the risk of oxidation of pieces
Perfect order fulfilment 82 94 97 S by moisture.
Product rate with After the analysis of these processes and a
30 12 3 S
insufficient stock brainstorming with the staff of the company, it proved
Product rate with that the various causes which lead to this erroneous
Level 35 17 5 S
overstock computing of the requirements are:
2
Unusual transportation With the level of process engineering used we noted
15 9 1 S
usage rate that there is a work not standardized, errors of transaction
Delivery rate with and data capture in SAP, from the delays of updating of
90 95 100 A
complete documents the master data, the non-observance of procedures of
Truck fill rate 90 95 100 S modification and the not enclosed production orders.
Late delivery rate of With regard to the labors available, we can define the
0 S
Level suppliers
failures continuations: Strong rotation, staffing less
3 Rate of products in rupture 0 S
formed, weak rotation interns, Lack of communication
Late delivery rate of
0 S interns
customers
The materials which exist undergo also several
defects, like under exploitation of SAP, of the not
6 Analysis and selection of Best identified fields of obligatory input, of the lack of
Practices communication under SAP… Finally, side client, we
notice delays in receipt of the orders, incorrect or
incomplete data of modification as well as unreliable EDI
6.1 Results & discussion of the case study forecasts.
After noting the various gaps noticed in indicators on the
dashboard. We brought out the processes affected by 6.2 Best practices proposed by the SCOR®
these gaps. Each indicator of the dashboard is related to model
one or more processes. The preliminary step is to analyze
the processes that affect the maximum weak indicators. Definitions of Best Practices that include lists of
This analysis will lead to determining the causes of this components that differ between authors is not
weakness and action variables on which it will take satisfactory. Components should at least be organized by
action to improve these indicators. categorizing them in different ways, for example, for
-Supply Planning Process P2: This process aims to internal and external activities (customer and supplier
establish a supply plan. This is the principle of planning relationships); direct and indirect activities; or to people
required by the MRP method. It begins by identifying the and processes. In the industrial context, BP can be
raw material requirements based on customer orders and interpreted as a mechanism for defining and
forecasts. The result of this part represents the gross implementing a manufacturing strategy [22]. According
requirement. Subsequently, we identify the available to Dilworth (1993), the choice of a manufacturing
resources, whether in raw material stock or expected strategy involves choosing the weights or weights to be
deliveries via SAP system (Treatment of CBN). Hence, given to profitability, flexibility, product quality and
we obtain net requirement. Once the net requirement is service (reliability and speed). Best practices should be
defined, we can establish the procurement plan and chosen by a company to support the chosen strategy [23].
delivery programs taking into account the parameters of Motivated by the idea that the plant should be considered

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in a strategic context and the analogy with computer- identified and evaluated, treatments can be offered
integrated manufacturing [24]. through best practices identified by SCC. The SCOR®
Regarding the processes mentioned above, the most model makes the failure reduction actions consistent with
performing companies have established certain practices each other so that risk management fits. Note that the
that have reported to them tangible benefits. This is a Supply Chain can meet the strategic objectives through
kind of capitalization of experience that the SCOR® this model. It should be added that SCOR® modeling
model offers through benchmarking. The following table allows for quick configurations and reconfigurations of
lists best practices offered by SCOR® Framework, taking the supply chain, making it possible to set up economic
into account the processes previously diagnosed and the models that respond to the changing environment. The
anomalies observed. Priority actions for this project will SCOR® model, therefore, provides the Supply Chain with
obviously be those who have the greatest impact and the the capacity to be robust, because of the structure of the
least difficulty. model, but also resilient, because of the possible
We will prioritize action plans to implement the best reconfigurations, made indispensable. Recall that applied
practices that have high impacts or benefits for the to the Supply Chain, resilience is the ability of a system
company and whose difficulty of implementation is low. to recover a stable state after a disruption (failure of a
supplier, unforeseen increase in demand ...). The model
Table 16. The best practices proposed by SCOR® model adapts to most Supply Chain issues arising from strategic
changes such as mergers/acquisitions of companies,
Processes Best Practices analyzes prior to the introduction of new information
systems. Of course, like any cross-cutting project,
All Key Participants in the Supply Chain,
Including Strategic Partners, Have Full running a project on the SCOR® model and, in addition,
Visibility of the Demand/Supply Plan if it is combined with other approaches linked, as well, to
P2- supply
planning
continuous improvement, requires the support of the
VMI: Vendor-managed Inventory
general manager as well as the membership of all the
CPFR: Collaborative Planning, actors involved in the project. In addition, it is clear that
Forecasting, and Replenishment the model training phase is one of the keys to the success
The Demand Plan is Updated Frequently of the project.
to Reflect Actual Consumption or The SCOR® process can get into a lot of process
Customer Forecast Information
P2.1 Identify detail levels to help a company in the automotive sector
prioritize dproduct Maximize Data Integrity and System to analyze its supply chain. It gives an idea of the
requirements Accuracy by Ensuring 99%+ Accuracy of progress of its supply chain and helps the company to
BOM Configuration, Inventory Levels, understand and control its links with suppliers and
and Schedule Requirements
customers. Each step in the process is a link in the supply
Digital Linkage (EDI, XML, Etc.) is
Used to Provide Real-Time Demand
chain that is critical to getting a product successfully
Information and Handle Routine along each level of the model. The SCOR® model
Transactions provides benefits to companies that use it to identify
P2.4 Establish
Maintain Data and System Integrity by supply chain issues. The model allows full leveraging of
procurement plans
Ensuring Production Data, Inventory capital investment, a creation of a supply chain roadmap,
Levels, and Schedule Requirements Are alignment of business functions, and an average of two to
99+% Accurate
A detailed production model that
six times the return on investment [25].
synchronizes PLAN and MAKE activities Indeed, for our case studied the benefits come
in real time immediately and are continuous in the complete process
EP.7 Manages of applying the SCOR® model. We will detail these
Planning ABC Classification advantages following 5 steps of the successful roadmap
Configuration as it is found after applying the SCOR ® model to our case
Electronic Kanban Pull Signals Are Used
S1.1 et S2.1
to Notify Suppliers of the Need to Deliver
study. The first step is to educate using information and
schedule deliveries workshops from the Supply Chain Council. Every
Product
member of the team, including senior management, is
7 SCOR Benefits and limitations in educated in what Supply Chain Management is, how it
works, and the benefits of this new business philosophy.
Automotive Industries Afterward, the roadmap uses the discovery phase of the
process. In this phase, the business process that is
7.1 Benefits & Roadmap for success currently in place as well as the flow of the "real"
process, are identified, examined, measured, and
The representation performed through the model allows compared to the automotive industry practices. It is
the identification of potential sources of supply, essential to the success of the company, before any
organizational breaks, redundant processing, and changes or improvement process implemented, that it
information flows using tortuous circuits... The SCOR® knows how it really works. Not how the process is
model, therefore, leads to identifying the paths Critical written in the policies and procedures manual, but how it
Supply Chain (nodes and links). This is essential because works in reality. This knowledge can only come from the
it is necessary to focus its resources on the critical points. people who do the work, the real experts on how the
The metrics database proposed by the model can enable business is executed. After the discovery phase, the
companies to select relevant key performance indicators model leads us through the analysis phase whose
to assess and monitor the level of risk in a previously solutions are produced by developing a significant "gap
defined framework. Once the points of failure are analysis" and making a comparison of the current

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situation with that of the best companies in the world. specificity of the automotive sector, in addition, some
Once the discovery phase is complete it is necessary to activities present may belong to the different process. The
introduce the development phase which brings together choice of affiliation of these activities was delicate.
all the changes and improvements proposed. This is SCOR brings names to processes. Since affiliation is not
where you need to prioritize process changes and validate obvious for some processes, the names do not
that the desired changes and improvements are made. characterize the content of the process. Level 3 process
Once the process changes are validated you have to move names are changed to more common business terms.
to the fifth and final step in the roadmap, that's the Navigating the structure provided by the SCOR model
implementation. It is in this phase that we choose a pilot requires its complete representation on paper, taking in
program to implement the new modified business our case the dimensions of an A0 only for a single
process. The pilot program must be chosen with great process. On the one hand, if the study is extended to all
care and the planning must be representative of our processes, the complete drawing is difficult to obtain due
current economic model, but it should not be of such to its size and it makes the navigation in the complete
magnitude that it could paralyze the current business. The system long and arduous. On the other hand, Correlations
pilot program not only validates the changes but also between categories of indicators are not observable. For
trains staff, modifies processes in real time and compares example, it is not possible to show that time has an
them to predetermined goals. This is an exciting and impact on cost. A good knowledge of the model
rewarding part of the SCOR® model process and rewards definitions is necessary for its use. Modeling by SCOR
are generally far beyond the program's efforts and requires a good knowledge of the actual operation of the
expenditures. Once the pilot program has validated activities and conducting the study in the field. In
workflow improvements, improvements to the new summary, obtaining the business model and its
process can be disseminated to the rest of the business exploitation is long and tedious. Computerization seems
process in a methodical and managed process. The to be an inevitable future development to exploit the
implementation of SCM in a company brings huge wealth of the model obtained [27].
improvements and benefits to the business, but also it Lockamay III and McCormack (2004) argue that the
generates risks and costs. These last two elements can be importance of supply chain management planning is
managed and controlled with the appropriate tools and clearly revealed in the literature is crucial. There is a lack
training. The SCOR® model of the supply chain council of research linking supply chain planning practices with
provides the step-by-step process, the training required supply chain performance. They also reveal the need to
and the support needed to achieve this goal successfully use information technology in the supply chain to
[26]. improve information sharing, supply chain
competitiveness and the use of ERP systems, advanced
planning, and Internet technologies [28]. (Wang et al
7.2 Limitations & Weakness 2005), also argues that the SCOR® model is not a
In this part, we will discuss the different difficulties complete solution for supply chain development. There
encountered during the implementation of the model in are limitations in the SCOR® model. This is why they
our society, and these remarks were reported by the proposed a new framework for global logistics systems.
practitioners and managers involved in the selected However, they mentioned that this framework is not the
processes during the interviews organized with them after only way to solve all supply chain management issues
the implementation phase. Indeed, the first difficulty [29][30].
reported is the fact that there were 159 metrics proposed
by the SCOR® standard. This has made the task of 8 Conclusion and prospects
selecting and monitoring all these metrics long and
tedious. Each measure involves measuring, monitoring The SCOR® model provides a framework of the
and defining action plans. Help in identifying the most common supply chain, standard terminology, common
important metrics was required. This help has helped measures with associated benchmarks and best practices.
reduce cost overruns in terms of time spent using the It can be used as a common template for the evaluation,
model. An in-depth understanding of model definitions positioning, and implementation of supply chain
was needed to optimize the use of this model. Modeling application software. It is in its growing life cycle phase
via SCOR® requires a thorough understanding of how and is leveraging to become a standard in the automotive
activities actually work and the completion of a field industry that has complex supply chains due to the nature
study. Acquiring and using the business model is a long of the products manufactured.
and tedious process. This generates additional costs and Indeed, based on the opinion of practitioners in the
time. Computerization is a key future development to field model and specialists during the implementation of
take full advantage of the model acquired [27]. the model, several benefits were collected such as
The SCOR® model has limitations that lead to gaps securing the logistics chain since the SCOR® model
in the need for performance evaluation in a car industry provides the supply chain with the ability to be robust,
company. All processes and sub-processes proposed by because of the structure of the model, but also resilient,
SCOR® in level 3 are not chosen for the application case. because of the possible reconfigurations, made
The method recommends making choices according to indispensable. Also, it gives an idea of the progress of its
the present activities. However, the choice was made supply chain and helps the company to understand and
using the definition describing the content of the control its links with suppliers and customers. Each stage
processes in the model and an adaptation of the activities of the process is a link in the supply chain essential to the
proposed by the model to be inadequacy with the success of a product at each level of the model. The

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SCOR® model provides benefits to companies that use it in the automotive sector: A structured content
to identify supply chain issues. On the other hand, the analysis,” Sustainability (Switzerland), 9(6), 1-
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