SCOR Framework 2.1

SCOR Framework
Introducing all elements of the Supply

Chain reference model: Standard
processes, metrics and best practices
This presentation is the exclusive property of the Supply Chain

Council. Copyright © Supply Chain Council. 2006. All rights
reserved. The marks SCOR®, CCOR™, DCOR™ and SCOR
Roadmap™ are the exclusive property of the Supply Chain Council.
SCOR Framework Workshop
• Understand the History and Context of SCOR

• Learn the Components of the SCOR Framework
• Process Nomenclature
• Process Metrics
• Process Best Practices
• Understand how to model a Supply-Chain with SCOR

• Understand how to characterize a Supply-Chain with
SCOR metrics
• Apply the SCOR framework using a simplified SCOR
Project Roadmap
Copyright © Supply Chain Council, 2008. All rights reserved 2

Supply-Chain Council
• The SCC is an independent, not-for-profit, trade association

• Membership open to all companies and organizations
• Focus is on research, application and advancement and advancing state-of-the-art
supply chain management systems and practices
• Developer and endorser of the Supply Chain Operations Reference (SCOR®) as a
cross-industry standard for supply chain management
• Offers Training, Certification, Benchmarking, Research, Team Development,
Coaching, and Cross-standard Integration focused on the SCOR® framework
• Founded in 1996
• Approaching 1000 Association Members
• Chapters in North America, Europe, Japan, South Africa, Latin America,
Australia/New Zealand, South East Asia and Greater China, with developing
Chapters India and Middle East
Driving value through the use of SCOR®

Supply-Chain
Product/Portfolio
Product/PortfolioManagement
Management
Customer
Customerprocesses
processes
Supplierprocesses
Product
ProductDesign
Design Sales
Sales&&Support
Support
DCOR™ CCOR™
processes
DCOR™ CCOR™
Supplier
Supply
SupplyChain
Chain
SCOR
SCOR®®

Supply-Chain
Supply
Supply Chain
Chain
Customer
Plan
Plan
Customer processes
processes
Supplier processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Return
Return Return
Return
Process, arrow indicates material flow direction
Process, no material flow Information flow

SCOR: A Process Framework
• Process frameworks deliver the well-known concepts of

business process reengineering, benchmarking, and best
practices into a cross-functional framework
• Standard processes: Plan, Source, Make, Deliver, Return, Enable
• Standard metrics: Perfect Order Fulfillment, Cash-to-Cash Cycle Time,
Cost of Goods Sold, Order Fulfillment Cycle Time, etcetera
• Standard practices: EDI, CPFR, Cross-Training, Sales & Operations
Planning, etcetera
• Pre-defined relationships between processes, metrics and

practices and inputs and outputs

Combines Best Techniques
Business Process Benchmarking Best Practices Process Reference

Re-Engineering Analysis Framework
Capture the ‘As-is’ Capture the ‘As-is’

business activity business activity
structure and derive the structure and derive
future ‘To-be’ state the future ‘To-be’ state
Quantify the operational Quantify the operational
performance of similar performance of similar
companies and establish companies and establish
internal targets based on internal targets based on
‘best in class’ results ‘best in class’ results
Characterize the
management practices
Characterize the
and software solutions
management practices
that result in superior
and software solutions
performance
that result in superior
performance
• 3 techniques become 1 integrated approach

End-to-End Supply Chain
Plan
Plan 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 Customers’

Supplier Customer
Internal or External Internal or External
SCOR reference model
• Whether from Cow to Cone or from Rock to Ring SCOR is not limited by
organizational boundaries

End-to-End Supply Chain
Components Sub assemblies Manufacturer Retailer Consumer
Source
Source Make
Make Deliver
Deliver Source
Source Make
Make Deliver
Deliver Source
Source Make
Make Deliver
Deliver Source
Source Deliver
Deliver Source
Source
Supplier’s Supplier Supplier MP3 Company Customer Customer’s Customer
Process, arrow indicates material flow direction

SCOR Hierarchy
Level 1 Level 2 Level 3 Level 4 Level 5

Scope Configuration Activity Workflow Transactions
S1 Source S1.2
S
Stocked Receive
Source
Product Product
Differentiates Differentiates Names Tasks Sequences Steps Links

Business Complexity Transactions
Defines Scope Differentiates Links, Metrics, Job Details Details of

Capabilities Tasks and Automation
Practices
Framework Framework Framework Industry or Technology

Language Language Language Company Specific Language
Language
Standard SCOR practices Company/Industry definitions

Organizational Hierarchy
Level 1 Level 2 Level 3 Level 4 Level 5

Scope Configuration Activity Workflow Transactions
S1 Source S1.2 EDI

S XML
Stocked Receive
Source
Product Product
Differentiates Differentiates Names Tasks Sequences Steps Links

Business Complexity Transactions
Defines Scope Differentiates Links, Metrics, Job Details Details of

Capabilities Tasks and Automation
Practices
CxO (COO, CIO) SVP VP Manager Team Lead

EVP VP Director Team Lead Individuals
SVP Line Manager Programmer
Organization focused Activity focused

SCOR Process Codification
• SCOR processes have unique identifiers:

1. One capital only are level 1 processes: P, S, M, D and R (5 in total)
2. A capital plus a number are level 2: P1, S2, M3, D2, D4 (15 in total)
Two groups of exceptions for level 2:
• Enable: EP, ES, EM, ED and ER (5 in total) and
• Return: SR1, DR1, SR2, DR2, SR3, DR3 (6 in total)
3. A capital plus a number, a period and a number are level 3 processes:
P1.1, P1.2, S2.1, M1.5, D3.12 (111 processes in total)
Two groups of exceptions for level 3:
• Enable: EP.1, ES.3, EM.4, ED.8, ER.1 (47 in total)
• Return: SR1.1, DR1.3, SR2.2, DR2.4, SR3.5, DR3.1 (27 in total)
• X = level 1, Xn = level 2, Xn.m = level 3

Exercises: The Dinner Party
• The supply chain used for the exercises is a dinner party

• You will host a party this weekend with 25-40 of your dearest friends
• You will serve them burgers from your grill (barbecue)
• You are responsible for organizing the event, ingredients, grill, tools and
utensils and general well-being of your guests
• We will be using “The Dinner Party” through the rest of today to exercise
different modeling characteristics
• Ingredients of a burger: 750g minced steak 1 onion (rings)

1 tsp Worcestershire sauce 4 sesame seed buns
2 tbsp mustard 10 shredded lettuce leaves
2 sliced tomatoes 2 sliced dill pickles
10 thin slices Swiss cheese Salt and pepper

Execution Processes
Supply
Supply Chain
Chain
Customer
Plan
Customer processes
Plan
processes
Supplier processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Return
Return Return
Return
• Processes: Source, Make and Deliver

• Objective: value-add, revenue generating
Capability Models
Level: Different capabilities

Stocked Product (S1, M1, D1)
• Inventory Driven (Plan)
• Standard Material Orders R1
S1 D1
M1 I1
D1
• High Fill-rate, short turnaround
Make-to-Order (S2, M2, D2)

• Customer Order Driven R2
S2 D2
M2 I2
D2
• Configurable Materials
R1
S1
• Longer turn-around times
Engineer-to-Order (S3, M3, D3) R3

S3 D3
M3 I3
D3
• Customer Requirements Driven
• Sourcing New Materials R2
R1
S2
• Longest long lead-times, low fill rates
R1
S1

Source (Process ID: S)
• Objectives of this process:

• The ordering, delivery, receipt and transfer of raw material
items, subassemblies, product and/or services.
• Key processes comprehended:

• Schedule product deliveries
• Receive, inspect, and hold materials
• Issue material to Make or Deliver processes
• Supplier/Vendor Agreements
• Vendor certification and feedback, sourcing quality
• Manage Raw Materials inventories
• Freight, import/export documentation
• Hint: Receiving processes? Probably Source in SCOR

Source Configurations
• Configurations:
• Source Stocked Product (Process ID: S1)
• The ordering and receiving of existing products, components and
services from existing contracts, based on requirement plans.
• Source Make-to-Order (Process ID: S2)

• The ordering and receiving of existing products, components and
services for a unique and identified customer order.
• Source Engineer-to-Order (Process ID: S3)

• The selection, ordering and receiving of specialized products or
services that are designed and/or built based on the requirements
or specifications of a particular customer order or contract.

Source Process Elements
Stocked Product (S1) Make-to-Order (S2) Engineer-to-Order (S3)
S3.1 Identify Sources of

Supply
S3.2 Select Final Supplier(s)

and Negotiate
S1.1 Schedule Product S2.1 Schedule Product S3.3 Schedule Product

Deliveries Deliveries Deliveries
S1.2 Receive Product S2.2 Receive Product S3.4 Receive Product
S1.3 Verify Product S2.3 Verify Product S3.5 Verify Product
S1.4 Transfer Product S2.4 Transfer Product S3.6 Transfer Product
S1.5 Authorize Supplier S2.5 Authorize Supplier S3.7 Authorize Supplier

Payment Payment Payment

Make (Process ID: M)

• The process of adding value to products through mixing, separating,
forming, machining, and chemical processes.
• Key Processes Comprehended:

• Schedule production, request and receive material from
Source and/or Make processes
• Manufacture, assemble/disassemble and test product,
package, hold/release product
• Managing product quality and engineering changes
• Managing facilities and equipment, production status
workflow and capacity management
• Manage Work-In-Process (WIP) inventories
• Hint: Itemnumber change? Probably Make in SCOR

Make Configurations
• Make-to-Stock (Process ID: M1)

• The making of standard products and services. Planning (Plan)
processes determine what, how much and when to make.
• Make-to-Order (Process ID: M2)

• The making of standard or configurable products and services for
unique customer orders. Customer orders determine what, how much
and when to make. Customer orders can be traced throughout the
Make process.
• Engineer-to-Order (Process ID: M3)

• The making of specialized products or services that are fully or
partially designed and made based on the unique requirements and
specifications of a particular customer order or contract. Customer
orders and specifications can be traced throughout the Make process.

Make Process Elements
Make-to-Stock (M1) Make-to-Order (M2) Engineer-to-Order (M3)
M3.1 Finalize Production

Engineering
M1.1 Schedule Production M2.1 Schedule Production M3.2 Schedule Production

Activities Activities Activities
M1.2 Issue Material M2.2 Issue Sourced/In- M3.3 Issue Sourced/In-

Process Product Process Product
M1.3 Produce and Test M2.3 Produce and Test M3.4 Produce and Test
M1.4 Package M2.4 Package M3.5 Package
M1.5 Stage Product M2.5 Stage Finished Product M3.6 Stage Finished Product
M1.6 Release Product to M2.6 Release Finished M3.7 Release Product to

Deliver Product to Deliver Deliver
M1.7 Waste Disposal M2.7 Waste Disposal M3.8 Waste Disposal

Deliver (Process ID: D)

• Perform customer-facing order management and order fulfillment
activities including outbound logistics.

• Product, service and price quotations
• Order entry and maintenance
• Order consolidation, picking, packing, labeling and shipping
• Import/export documentation
• Customer delivery and installation
• Logistics and Freight Management
• Manage Finished Goods inventories
• Hint: Order taking or Shipping? Probably Deliver in SCOR

Deliver Configurations
• Deliver Stocked Product (Process ID: D1)

• The delivery of standard products (and services) that are maintained in a
finished goods state prior to the receipt of a customer order.
• Deliver Make-to-Order Product (Process ID: D2)

• The delivery of standard or configurable products and services that are
obtained (Source or Make) for a customer order.
• Deliver Engineer-to-Order Product (Process ID: D3)

• The delivery of specialized products and services that have been fully or
partially designed in negotiation and based on requirements from a
customer order and customer provided specifications
• Deliver Retail Product (Process ID: D4)

• The delivery of standards goods in a retail store

Deliver Process Elements (1/3)
Stocked Products (D1) Make-to-Order (D2) Engineer-to-Order (D3)
D1.1 Process Inquiry & D2.1 Process Inquiry & Quote D3.1 Obtain & Respond to
Quote RFP/RFQ¹
D1.2 Receive, Enter & D2.2 Receive, Configure, D3.2 Negotiate & Receive
Validate Order Enter & Validate Order Contract
D1.3 Reserve Inventory & D2.3 Reserve Inventory & D3.3 Enter Order, Commit
Determine Delivery Determine Delivery Resources & Launch
Date Date Program
D1.4 Consolidate Orders D2.4 Consolidate Orders D3.4 Schedule Installation
D1.5 Build Loads D2.5 Build Loads D3.5 Build Loads
D1.6 Route Shipments D2.6 Route Shipments D3.6 Route Shipments
D1.7 Select Carriers & Rate D2.7 Select Carriers & Rate D3.7 Select Carriers & Rate
Shipments Shipments Shipments
¹ RFP = Request for Proposal, RFQ = Request for Quote

Stocked Products (D1) Make-to-Order (D2) Engineer-to-Order (D3)
D1.8 Receive Product from D2.8 Receive Product from D3.8 Receive Product from
Source or Make Source or Make Source or Make
D1.9 Pick Product D2.9 Pick Product D3.9 Pick Product
D1.10 Pack Product D2.10 Pack Product D3.10 Pack Product
D1.11 Load Product & Create D2.11 Load Product & Create D3.11 Load Product & Create
Documentation Documentation Documentation
D1.12 Ship Product D2.12 Ship Product D3.12 Ship Product
D1.13 Receive & Verify D1.13 Receive & Verify D1.13 Receive & Verify
Product by Customer Product by Customer Product by Customer
D1.14 Install Product D2.14 Install Product D3.14 Install Product
D1.15 Invoice D2.15 Invoice D3.15 Invoice

Retail Products (D4) • The Retail supply chain model does

D4.1 Generate Stocking not match up to the Manufacturing
Schedule
supply chain model, therefore
D4.2 Receive Product at
Store processes are quite different
D4.3 Pick Product from
Backroom
D4.4 Stock Shelf
D4.5 Fill Shopping Cart
D4.6 Checkout
D4.7 Deliver and/or Install

Control processes: Plan, Enable
• Plan and Enable processes prepare the supply-chain to

ensure smooth execution
• Planning processes balance the need for resources,
materials, capacity, etc. with the availability of these
resources. This includes prioritization if needed.
• Enable processes address 8 control aspects for the supply
chain. They monitor compliance, deliver information from
other process areas and highlight dependencies
on these other process areas. They also
support maintenance of relationships
with suppliers.

Planning Processes
Supply
Supply Chain
Chain
Customer
Plan
Customer processes
Plan
processes
Supplier processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Return
Return Return
Return
• Processes: Plan
• Objective: Drive/coordinate execution processes
Plan (Process ID: P)

• The process of determining requirements and corrective actions to
achieve supply chain objectives
• Key Processes Comprehended:

• Supply chain revenue planning/forecasting
• Materials requirement planning
• Factory, repair, maintenance facilities capacity planning
• Distribution requirements planning
• Manage planning parameters
• Hint: Forecasting, S&OP, MRP?

Probably Plan in SCOR

Plan Configurations (1/2)
• Plan Supply Chain (Process ID: P1)

• Planning overall supply chain targets. Plan Supply Chain drives and
coordinates P2, P3, P4 and P5 plans (Compare to “Revenue plan”, or
“Budget” in certain industries)
• Plan Source (Process ID: P2)

• Planning of material ordering and receiving activities. Plan Source
calculates which materials need to be available when to support the
production plan (P3) and/or the delivery plan (P4). (Compare to
“Materials Requirements Plan”)
• Plan Make (Process ID: P3)

• Planning of production and/or MRO activities. Plan Make ensures the
production resources (capacity) are in place as needed and may
generate production orders. (Compare to “Production Plan”)

Plan Configurations (2/2)
• Plan Deliver (Process ID: P4)

• Planning of order management, material handling and transportation
activities. Plan Deliver ensures resources are in
place as needed and may generate or recalculate shipping dates based
on material availability. (Compare to “Shipment Plan”, “Load Planning”)
• Plan Return (Process ID: P5)

• Planning of the reverse logistics shipping and material handling capacity.
Note: This does not include the maintenance, repair or overhaul activity
planning as those are Make processes.

Plan Processes
• Planning is an iterative process:

1. The output of Plan Supply Chain is the input for Plan Source, Plan
Make, Plan Deliver and Plan Return
2. The output of Plan Source, Plan Make, Plan Deliver and Plan Return
are inputs for Plan Supply Chain; The output of one cycle is the
input for the next cycle
1 P3.1
P3.3 P3.4 2
P1.1 P3.2 P1.1
Plan Make
P1.3 P1.4 P1.3 P1.4
P1.2 P1.2
Plan Supply Chain P2.1 Plan Supply Chain
P2.3 P2.4
to P3.2
P2.2
Plan Source
end full cycle begin next cycle

Enable Processes
Supply
Supply Chain
Chain
Customer
Plan
Customer processes
Plan
processes
Supplier processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Return
Return Return
Return
• Processes: Enable Plan, Enable Source, Enable Make,

Enable Deliver and Enable Return
Enable Processes
• Objective:
The Enable processes are five groups of processes under Plan, Source,
Make , Deliver and Return with 3 distinct types of objectives:
1. Manage process performance
2. Manage process control data
3. Manage process relationships

• Managing business rules and monitoring adherence
• Measuring supply chain performance and determine corrective action
• Managing risk and environmental impact
• Managing the supply chain network and facilities
• Hint: Equipment or plant maintenance? Probably Enable

Enable Categories
• Enable Plan (Process ID: EP)

• Performance, data and relationship management processes for all types
of planning processes: Plan Supply Chain, Plan Source, Plan Make, Plan
Deliver and Plan Return. Examples: maintain planning cycles, monitor
planning accuracy, manage supply chain risks.
• Enable Source (Process ID: ES)

• Performance, data and relationship management processes for all
receiving activities and supplier related processes. Examples: Monitor
supplier performance, maintain what is sourced where.
• Enable Make (Process ID: EM)

• Enable management processes for manufacturing, repair and overhaul
type processes. Examples: BOM maintenance, preventive equipment
maintenance, monitoring capacity utilization/shortage.

Enable Categories
• Enable Deliver (Process ID: ED)

• Performance, data and relationship management processes for all order
management, warehouse and distribution activities and forwarder related
processes. Examples: Monitor order management and forwarder
performance, maintain a distribution network, managing risk.
• Enable Return (Process ID: ER)

• Enable management processes for all types of reverse logistics processes:
MRO returns, defective product returns and excess inventory returns.
Examples: Maintain return approval rules, Maintain issue tracking
software, maintain a return distribution network.

Reverse Processes
Supply
Supply Chain
Chain
Customer
Plan
Customer processes
Plan
processes
Supplier processes
processes
Source
Source Make
Make Deliver
Deliver
Supplier
Return
Return Return
Return
• Processes: Return (Source Return, Deliver Return)

• Objective: reverse material flows
Return (Process ID: R)
• Objective of this process:

• Moving material from customer back through supply chain to address
defects in product, ordering, or manufacturing, or to perform upkeep
activities.
• Key Processes Comprehended

• Identification of the need to return a product or asset
• Requesting and issuing return authorization
• Inspection and disposition decision-making
• Transfer/Disposition of product or asset
• Managing return transportation capacity
• Managing returned material inventories
• Hint: Reverse material flow? Probably Return in SCOR

Return Configurations
• Return Defective Products (Process IDs: SR1 and DR1)

• The return of products because the product is defective, the wrong
product was ordered or shipped.
• Return Maintenance, Repair & Overhaul (IDs: SR2 and DR2)

• The return of products or assets to perform preventative maintenance,
(end-of-life) overhaul or repairs due to breakage/aging with use
• Return Excess Products (Process IDs SR3 and DR3)

• The return of excess inventories and inventories of product which will be
retired (end-of-life excess). The product is new and in original packaging.
• SR = Source Return, DR = Deliver Return

Return Configurations
• Positioning Source Return and Deliver Return

• Consider the flow of goods; Notice the positions of Source and Deliver
Supplier My Company Customer
Deliver Source Deliver Source
• Now, notice the positions of Source Return and Deliver Return
Supplier My Company Customer
Deliver Source Deliver Source

Return Return Return Return

Modeling with SCOR
• Drivers for modeling: Why do you model

• Business opportunities:
• Strategy Development
• Merger, Acquisition or Divestiture (Companies or Supply Chains)
• Process optimization and Re-engineering
• Standardization, Streamlining and Management alignment
• New business start-up (Company and Supply Chain start-ups)
• Benchmarking
• Process Outsourcing
• Technology services:
• Software implementation (ERP, PLM, QC)
• Workflow & Service Oriented Architecture

Different Model Types
• SCOR recognizes different types of models. Each serving a

different purpose:
• Business Scope diagram: Set the scope for a project or organization
• Geographic Map (a.k.a. Geo Map): Describes material flows in a
geographic context; Highlights node¹ complexity or redundancy
• Thread Diagram: Material flow diagram, focused on level 2 process
connectivity; Describes high level process complexity or redundancy
• Workflow or Process Models: Information, material and work flow
diagram at level 3 (or beyond); Highlights information, people and
system interaction issues
¹) A node represents a logical or geographic entity in a supply chain.

Examples: Warehouse, Factory, Store

Creating a Scope Diagram
• Steps to create a Business Scope Diagram

1. Create or open the business scope diagram template
2. Identify customers of your organization or project and enter these in the
customers column in the scope diagram.
3. Identify and enter the key nodes within your organization or project. A
node represents a logical or geographic entity in the supply chain.
Consider: Warehouse, Factory, Store, HQ etc.
4. Identify and enter the suppliers of your organization or project
5. Optionally link the nodes to reflect material and/or information flows. Use
a different color and/or stroke differentiate material and information
flows. Example:
Material and information flow
Information flow

Creating a Scope Diagram
Steps to create a Business Scope Diagram

Supplier My Organization Customer 1. Create or open the business scope diagram template
2. Identify and enter the customers of your project or
organization
3. Identify and enter the key nodes within your project
or organization
4. Identify and enter the suppliers of your project or
organization
5. Optionally link the nodes to reflect material and/or
information flows (using different color/stroke)
1
Supplier My Organization Customer Supplier My Organization Customer

Flash Inc. mp3 HQ Flash Inc. mp3 HQ
5 5
Battery ltd. Battery ltd.
Factory DC Retail Inc. Factory DC Retail Inc.
4
Comps 3 2 Comps

The Result: Scope Diagram
Suppliers
Flash Inc. mp3,
mp3 Inc.
HQ Customers
Battery ltd. Factory Retail, Inc.
Components
Warehouse
Service Providers
Material and information flow
Information flow
Modeling with SCOR
Steps to create the Geographic Map:

1. Create geographic context (a.k.a. the map)
2. Draw and name your customers on the map
a. Identify the level 2 processes
b. List the level 2 processes in the customer on your map
3. Beginning with your customers, repeat this for every node on the map:
a. Identify all supplying nodes (where does material come from)
b. Draw and name these supplying nodes on the map
c. Identify the level 2 processes
d. list these in the node on your map
e. Draw the material flows (arrows connecting the nodes)
Repeat until you have included all your suppliers/nodes

Creating a Geographic Map
Steps to create the Geographic Map:

1. Create geographic context (a.k.a. the map)
2. Draw and name your customers on the map
a. Identify the level 2 processes
b. List the level 2 processes in the customer node
3. Starting with your customers, repeat for each node:
a. Identify all supplying nodes
b. Draw and name these supplying nodes
c. Identify the level 2 processes
d. List the level 2 processes in each node
1 e. Draw the material flows (connecting arrows)
Repeat until you have included all your suppliers
Drive Supplier
b²
2 Retail, Inc 3 D1, P1, P4 d²
S1, P2
UK b
Germany
China
e²
France
India
Spain
MP3 Factory
b¹
S1, M1, D1
d¹
Copyright © Supply Chain Council, 2008. All rights reserved e¹ 50
Result: The Geographic Map
Retail, Inc
S1, P2
Drive Supplier
Battery Supplier
HQ D1, P1, P4
D1, P1, P4
P1, P2, D2, S2
MP3 Factory
P3, S1, M1, D1
Question: No flow from HQ; Why?

Modeling with SCOR
Steps to establish SCOR process models (workflows)

1. Obtain generic descriptions (this is what people describe)
2. Map these generic descriptions to SCOR process IDs (normalize)
3. Create swimming lanes to reflect organizational boundaries
4. Create workflow with these SCOR processes
5. Add description to workflows to reflect inputs/outputs of the processes
6. Optionally add other relevant information
1 2
1. Orders are faxed in and entered in OMS D2.2 Receive, Enter, Validate Order
2. Every night the orders are scheduled D2.3 Reserve Inventory & Determine
3. The orders are released to the factory Delivery Date
based on the delivery date offset
4. Factory creates and schedules factory M2.1 Schedule Production Activities
work orders in SFCS

Elements of a Business Process
• Process is defined by more than just activity
metrics not in SCOR

business rules
measurements best practices
inputs activity outputs
people technology
geography
skills interface
organization platform

Obtaining Generic Descriptions
• Staple-Yourself-To-An-Order;
• Proven technique to obtain generic language process descriptions:
• Follow the logical flow of an order through the process.
• Each level 1 process has an order (except Plan): Customer order for
Deliver, Production order for Make, Purchase order for Source and
Return Authorization for Return.
• For each order start with the process of order creation and follow the
order and document each activity until the order is completed/closed.
• Similarly follow the steps of the planning cycles you encounter.
• Finally cover any process you have missed so far; Use your SCOR list of
processes as a check-list.
• Hint: To obtain generic descriptions for an end-to-end supply chain: Start
with Plan, then Deliver, Make, Source.

Obtaining Generic Descriptions
• The purpose of capturing process is to understand it and

remove, adjust or repair it where needed
• Recognize process characteristics:
• 'Measurements': It takes 30 minutes to build…
• 'Business rule': The plan is updated weekly…
• 'People': This is handled by Joanna on Thursdays …
• 'Business rule': This is done to provide .. with .. data..
• 'Inputs' or 'triggers': When we receive the document..
• 'Outputs': We send them the document..
• 'Technology': We print the document from the .. system..
• 'Business rules': We need two copies of the form ..
• Verify hearsay statements, to eliminate perception

SCOR Metrics
• Definitions:
• Performance Attribute: a characteristic to describe a strategy.
Performance attributes serve as classification for KPIs and metrics
• Key Performance Indicator (KPI): a metric that is representative
to measure the overall performance or state-of-affairs
• Metric: a standard for measurement
• Measurement: an observation that reduces the
• amount of uncertainty about the value of a quantity
• SCOR metrics: Diagnostic metrics

• Linked to business objectives
• Highlight the gap in performance
• Change over time is more valuable than a single sample

Performance Attributes
Attribute Strategy
Reliability (RL) Consistently getting the orders right, product
meets quality requirements
Customer
Responsiveness (RS) The consistent speed of providing

products/services to customers
Agility (AG) The ability to respond to changes in the

market (external influences)
Cost (CO) The cost associated with managing and

Internal
operating the supply chain
Assets (AM) The effectiveness in managing the supply

chain’s assets in support of fulfillment
Question: What is/are the most important attributes to achieve your

supply chain strategy?

‘Levels’ in Metrics
• Level 1: Strategic metrics a.k.a. Key Performance Indicators

• Measure overall supply chain performance; health of the supply chain
• Set the scope and objectives for a supply chain, project or organization
• Translate a business problem or strategy into something measurable
• Establish the priority or priorities for organization
• Level 2: Diagnostic metrics

• Measure a part of the supply chain and/or a part of the strategic metric
• Provide direction to where problems originate
• Caution: Level 2 metrics do not by definition add up to a level 1 metric
• Beyond level 1 and 2: all metrics are called level 3

• SCOR does not specify levels for metrics that are not level 1 or 2
• These metrics serve as further diagnostic tools

SCOR Metrics Codification
• SCOR metrics have unique identifiers:

1. Two capitals are performance attributes: RL, RS, AG, CO and AM (5)
2. Two capitals, a period the number one (1) and a number are strategic
(a.k.a. level 1) metrics:
RL.1.1, RS.1.1, AG.1.1, CO.1.1, CO.1.2, AM.1.3 (10 in total)
3. Two capitals, a period the number two (2) and a number are diagnostic
(a.k.a. level 2) metrics:
RL.2.1, RS.2.1, AG.2.1, CO.2.1, CO.2.2, AM.2.7 (36 in total)
4. Two capitals, a period the number three (3) and a number are diagnostic
(or level 3) metrics:
RL.3.1, RS.3.1, AG.3.1, CO.3.149, CO.3.151, AM.3.44 (>500)
• XX = performance attribute,
• XX.1.n = level 1, XX.2.n = level 2, and so on
KPIs; Strategic Metrics
• Measuring strategy: KPIs are strategic (level 1) metrics
Attribute Strategic metric

Reliability RL.1.1 Perfect Order Fulfillment
Responsiveness RS.1.1 Order Fulfillment Cycle Time
Customer
Agility AG.1.1 Upside Supply Chain Flexibility

AG.1.2 Supply Chain Upside Adaptability
AG.1.3 Supply Chain Downside Adaptability
Cost CO.1.1 Supply Chain Management Cost
CO.1.2 Cost of Goods Sold
Internal
Assets AM.1.1 Cash-to-Cash Cycle Time

AM.1.2 Return on Supply Chain Fixed Assets
AM.1.3 Return on Working Capital
Strategic Reliability Metric
Metric: RL.1.1 Perfect Order Fulfillment

Definition: The percentage of orders delivered on-time, in full.
Components of perfect include all items and quantities on-
time, using the customer’s definition of on-time, complete
documentation and in the right condition
Calculation: [Total Perfect Orders] / [Total Number of Orders]
Diagnostic • RL.2.1 % Orders Delivered in Full

Metrics: • RL.2.4 Perfect Condition
(examples) • RL.3.19 % Orders Received Defect Free
• RL.3.24 % Orders Received Damage Free
Notes: An order is perfect only if all L2/L3 metrics are perfect; An
order must be: on-time AND in-full AND right condition AND
right documentation

Strategic Responsiveness Metric
Metric: RS.1.1 Order Fulfillment Cycle Time

Definition: The average actual cycle time consistently achieved to fulfill
customer orders. The actual cycle time starts with the receipt
of the order and ends with the customer acceptance of the
delivery. The unit of measure is days.
Calculation: [Sum Actual Cycle Times For All Orders Delivered] / [Total
Number Of Orders Delivered]
Diagnostic • RS.2.2 Make Cycle Time

Metrics: • RS.2.3 Deliver Cycle Time
(examples) • RS.3.96 Pick Product Cycle Time
Notes: Order Fulfillment Cycle Time includes dwell time. Dwell time is
the time no value add activities are performed on the order or
product, imposed by customer requirements.

Strategic Agility Metrics
Metric: AG.1.1 Upside Supply Chain Flexibility

Definition: The number of days required to achieve an unplanned
sustainable 20% increase in quantities delivered. Seasonality
is not considered unplanned/unforeseen. The unit of measure
for flexibility is calendar days.
Calculation: The larger of the number of days required to achieve

sustainable increase for Source, Make and Deliver
Diagnostic • AG.2.1 Upside Source Flexibility
Metrics: • AG.2.2 Upside Make Flexibility
• AG.2.3 Upside Deliver Flexibility
Notes: This metric may have more than one Source, Make and
Deliver Flexibility component depending on the complexity of
the supply chain.

Strategic Asset Metrics
Metric: AM.1.1 Cash-to-Cash Cycle Time
Definition: The time it takes for cash invested in materials to flow back
into the company after finished goods have been delivered to
customers. The unit of measure for Cash-to-Cash Cycle Time
is calendar days
Calculation: [Inventory Days of Supply] + [Days Sales Outstanding] –
[Days Payable Outstanding]
Diagnostic • AM.2.1 Days Sales Outstanding (DSO)

Metrics: • AM.2.2 Inventory Days of Supply (IDOS)
• AM.2.3 Days Payable Outstanding (DPO)
Notes: For services, the time between paying the resources assigned
to a service and receiving payment for the service delivery.

Strategic Asset Metrics
Metric: AM.1.2 Return on Supply Chain Fixed Assets

Definition: The return an organization receives on its invested capital in
supply chain fixed assets. This includes the fixed assets used
to Plan, Source, Make, Deliver and Return. Examples of fixed
assets include land, buildings, machinery, trucks
Calculation: ([Supply Chain Revenue] – [COGS] – [Supply Chain
Management Costs]) / [Supply Chain Fixed Assets]
Diagnostic • AM.3.11 Deliver Fixed Assets Value

Metrics: • AM.3.18 Make Fixed Assets Value
• AM.3.20 Plan Fixed Asset Value
• AM.3.27 Source Fixed Assets Value
Notes: Supply-Chain Revenue is the operating revenue generated
from a supply chain. This does not include non-operating
revenue, such as investments, etc..
Metrics and Analysis
• Levels in metrics help root cause performance issues

• Strategic metrics (level 1) can be diagnosed by investigating the level 2
metrics.
• Different types of relationships exist between a metric (the ‘parent’) and
it’s diagnostic metrics (the ‘children’):
1. The parent is the sum of it’s children (e.g. time and cost)
2. The children are multiplied to calculate the parent (e.g. yield)
3. The relationship is undefined (but can be statistically observed)
• Diagnostic metrics don’t necessarily add up to their parents:
Order Fulfillment Cycle Time IS NOT the sum of Deliver Cycle Time +
Make Cycle Time + Source Cycle Time for most supply chains

Metrics Data
• Each company will need to develop a tool or instructions

where to source the data for the SCOR metrics
• There are two types of data:
• Recorded data; obtain from transactional systems such as ERP
(Enterprise Resource Planning), WMS (Warehouse Management System),
financial systems, etc. For example: compare time-stamps in these
systems to calculate cycle times.
• Observed data; obtain through interviews, error logs, audits and/or time-
studies. For example the observed percentage of orders requiring
additional customer setup in a system, percentage of manual repackaging
events on the shipping dock.
• There is no easy button

Scorecards and SCORcards
• Definitions
• Scorecard: A visual display of the most important information needed
to achieve one or more objectives, consolidated and arranged in a
single view
• Balanced Scorecard: A scorecard providing metrics related to four
organizational strategies: financial, customer, internal process, and
employee learning and growth
• SCORcard: A scorecard providing metrics related to five supply chain
strategies: reliability, responsiveness, Agility, cost and assets
• Importance
• Communicate supply chain priorities
• Monitor all strategic areas, not just the top priority

SCORcard Metrics Selection
• SCORcard metric requirements:

• Measurable and quantifiable
Avoid 'feel good' metrics like supplier satisfaction or customer
satisfaction, unless they are an aggregation of well-defined detail
metrics. Framework-based metrics simplify the selection process.
• Linkage to responsibility
Avoid metrics that have no impact on performance reviews (supplier
or employee), ensure the metric is linked to the (right) process
owner at the right level.
• Ensure metric is well-defined
Multiple interpretations of a metric may lead to 'work-arounds' and
negation of the effort. SCOR metrics are pre-defined; limiting the
discussion on metric definitions.

Metrics Selection
• Interpreting the definitions

• Customer facing metrics should be measured as close to the
customer experience as possible.
• The moment of order submission instead of order entry
• Delivered performance instead of shipping performance
• Received quality instead of produced or shipped quality
• Measure what makes sense: Don’t have data; approximate the
missing component until you will be able to obtain the data
• Tip: It is not about how you think it should be measured, ask your
customer what is important to him/her
• And: Internal focused metrics also have a customer

Benchmarking
• Definitions
• Benchmarking: Comparing an organization’s performance, products,
practices, and/or services with those of other organizations that
operate in the same or comparable industry
• Parity: Being equal in performance; No real advantage over others
• Advantage: Being in a favorable position; In a stronger position than
• Superior: Being of high rank or quality; Leading
• Usage
• Establish Goals. Know where you are relative to others (competitors or
peers), and express where you're going.
• Monitor Performance. Track relative progress you and others (your
competitors or peers) make.

Benchmark Requirements
• Compare like for like

• Using standard metrics
A numerical comparison of the performance of two companies in the
same industry may not have value when the metric is different.
• Measuring the same process/business model
Avoid comparing the performance of a make-to-stock process to an
engineer-to-order process. The purpose of these processes is different,
measure them accordingly.
• Demographics
Make sure you understand the other organizations in the
benchmark. Regional differences, and differences in
product, or services may influence results.

Best Practices
• Definitions:
• Best practice: "A current, structured, proven and repeatable method
for making a positive impact on desired operational results."
• Current: Must not be emerging and can not be antiquated
• Structured: Has clearly stated Goal, Scope, Process, and Procedure
• Proven: Success has been demonstrated in a working environment
and can be linked to key metrics
• Repeatable: The practice has been proven in multiple environments.
• Importance
• Alternatives to the way you do business
• Equalize the competitive landscape

Types of Practices
• Best practices are Current, structured, proven and

repeatable methods for making a positive impact on
desired operational results.
• Leading practices are innovations adopted by single
companies or industries which provide dramatically
improved performance in a process, but because of
proprietary restrictions, or novelty, are not widely known
or adopted.
• Worst practices or Poor practices: Practices that are
known to produce negative impacts on operational results.

www.supply-chain.org
[email protected]
This presentation is the exclusive property of the Supply Chain

Council. Copyright © Supply Chain Council. 2006. All rights
reserved. The marks SCOR®, CCOR™, DCOR™ and SCOR
Roadmap™ are the exclusive property of the Supply Chain Council.

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What is the Supply Chain Council and what does it do?

What is the Supply Chain Council and what does it do?

What are the standard processes defined in SCOR?

What are the standard processes defined in SCOR?

SCOR Framework

Introducing all elements of the Supply

This presentation is the exclusive property of the Supply Chain

• Understand the History and Context of SCOR

• Understand how to model a Supply-Chain with SCOR

Copyright © Supply Chain Council, 2008. All rights reserved 2

• The SCC is an independent, not-for-profit, trade association

Driving value through the use of SCOR®

Copyright © Supply Chain Council, 2008. All rights reserved 4

Process, arrow indicates material flow direction

Process, no material flow Information flow

Copyright © Supply Chain Council, 2008. All rights reserved 5

• Process frameworks deliver the well-known concepts of

• Pre-defined relationships between processes, metrics and

Copyright © Supply Chain Council, 2008. All rights reserved 6

Business Process Benchmarking Best Practices Process Reference

Capture the ‘As-is’ Capture the ‘As-is’

• 3 techniques become 1 integrated approach

Suppliers’ Supplier Your Company Customer Customers’

SCOR reference model

Copyright © Supply Chain Council, 2008. All rights reserved 8

Components Sub assemblies Manufacturer Retailer Consumer

Supplier’s Supplier Supplier MP3 Company Customer Customer’s Customer

Process, arrow indicates material flow direction

Copyright © Supply Chain Council, 2008. All rights reserved 9

Level 1 Level 2 Level 3 Level 4 Level 5

Differentiates Differentiates Names Tasks Sequences Steps Links

Defines Scope Differentiates Links, Metrics, Job Details Details of

Framework Framework Framework Industry or Technology

Standard SCOR practices Company/Industry definitions

Copyright © Supply Chain Council, 2008. All rights reserved 10

Level 1 Level 2 Level 3 Level 4 Level 5

S1 Source S1.2 EDI

Differentiates Differentiates Names Tasks Sequences Steps Links

Defines Scope Differentiates Links, Metrics, Job Details Details of

CxO (COO, CIO) SVP VP Manager Team Lead

Organization focused Activity focused

Copyright © Supply Chain Council, 2008. All rights reserved 11

• SCOR processes have unique identifiers:

• X = level 1, Xn = level 2, Xn.m = level 3

Copyright © Supply Chain Council, 2008. All rights reserved 12

• The supply chain used for the exercises is a dinner party

• Ingredients of a burger: 750g minced steak 1 onion (rings)

Copyright © Supply Chain Council, 2008. All rights reserved 13

• Processes: Source, Make and Deliver

Level: Different capabilities

• High Fill-rate, short turnaround

Make-to-Order (S2, M2, D2)

Engineer-to-Order (S3, M3, D3) R3

Copyright © Supply Chain Council, 2008. All rights reserved 15

• Objectives of this process:

• Key processes comprehended:

• Hint: Receiving processes? Probably Source in SCOR

• Source Make-to-Order (Process ID: S2)

• Source Engineer-to-Order (Process ID: S3)