APICS Webinar Series
SCOR 101
Peter Bolstorff, CSCP, SCOR-P
Executive Director
APICS Supply Chain Council
September 23, 2015
Introduction
Peter Bolstorff, CSCP, SCOR-P
Executive Director | APICS Supply Chain Council
Delegate from 3M and then Imation for SCOR 1.0 in 1996
Expertise in Manufacturing and Planning including Center of
Excellence Leadership for Sales and Operations Planning
Authored, Supply Chain Excellence: A Handbook for Dramatic
Improvement Using the SCOR Model, 3rd Edition
First Supply Chain Council non-staff Certified Instructor and now
SCOR-P and CSCP
From 2002 to 2014, Helped 30+ Companies Analyze $13.5B USD
Deriving $200M USD in Operating Income Improvements
Have volunteered with the SCC since the beginning
Industry experience includes Chemical, Retail, Food and Grocery,
Electronics, Durable Goods, Consumer Packaged Goods, and
Aerospace and Defense
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Seven Good Questions
1.
Who is the APICS Supply Chain Council?
2.
What is SCOR?
3.
Why do companies use SCOR?
4.
How do companies use SCOR?
5.
What are the benefits companies realize as a result of
using SCOR?
6.
Who is using SCOR?
7.
How can I or my company get started?
3
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Who is the APICS
Supply Chain Council?
APICS SCC
The legacy SCC integrated with the former APICS Foundation to form the new
APICS SCC. The new organization continues the tradition of funding
scholarships and student programs; still operates as a global, non-profit
entity; and actively manages the Supply Chain Operations Reference (SCOR)
model.
Programs and Services
 Plossl Dissertation, Scholars Program, Student Case Competition
 Research Projects, Corporate Advisory Board, Executive Summit
 SCORmark™ Benchmark
 Publications, Resource Library, and Case Studies
 Other Value Chain Frameworks including M4SC, DCOR®, CCOR®, and PLCOR®
 Training is now available through APICS
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New Value Proposition
Training,
certification and
networking
APICS
Individuals
Research,
benchmarking and
frameworks
APICS Value
Proposition
APICS SCC
Corporate, Public Sector
and Academic
Institutions
APICS delivers a total individual and corporate
value proposition.
We help individuals achieve career development goals.
We help corporations achieve strategic supply chain goals.
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What is SCOR?
SCOR Framework
Plan
Deliver
Source
Return
Return
Plan
Make
Deliver
Source
Make
Deliver
Return
Source
Plan
Make
Return
Return
Deliver
Source
Return
Return
Return
Enable
Enable
Enable
Suppliers’
Supplier
Supplier
Your Organization
Internal or External
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Customers’
Customer
Internal or External
SCOR MODEL
8
Customer
SCOR Value
Value of a Reference Model
9

Business process reengineering

Best practice maturity
assessment

Benchmarks

Organizational and
Individual Supply Talent
Assessment
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SCOR Metrics
Attribute
SCOR 11.0 Metrics
Reliability
RL.1.1 Perfect Order Fulfillment
Responsiveness
RS.1.1 Order Fulfillment Cycle Time
Agility
AG.1.1 Upside Supply Chain Flexibility
AG.1.2 Supply Chain Upside Adaptability
AG.1.3 Downside Supply Chain Adaptability
AG.1.4 Overall Value At Risk (VAR)
Cost
CO.1.1 Total Cost to Serve
Asset Management
Efficiency
AM.1.1 Cash-to-Cash Cycle Time
AM.1.2 Return on Supply Chain Fixed Assets
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SCOR Hierarchy
Level
1
2
3
Major
Processes
Process
Categories
Process
Elements
sD1.1
Process inquiry
and quote
sD1.4
Consolidate
orders
4
11
Schematic
Description
Improvement
Practices
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(P)lan
(S)ource (M)ake
(D)eliver (R)eturn (E)nable
sD1
sD4
sD2 sD3
MTS MTO ETO Retail
sD1.2
Receive, enter,
Validate order
sD1.5
Build loads
sD1.3
Reserve inv. and
delivery date
sD1.6
Route
shipments
Comments
Defines the scope, content,
and performance targets of
the supply chain
Defines the operations
strategy. Process capabilities
are set
Defines the configuration of
individual processes. The
ability to execute is set.
Focus is on processes,
inputs/outputs, skills,
performance, best practices,
and capabilities
Use of kaizen, lean, TQM, six
sigma, benchmarking
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Product & Portfolio
Management PLCOR™
Product &
Process Design
DCOR™
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Sales &
Support
CCOR™
Supply Chain
SCOR®
Customer processes
Supplier processes
Other APICS SCC Frameworks
Why do companies use
SCOR?
Live Poll
Pollev.com/apics
Visual • 14
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Top Motivations to Use SCOR
Visual • 15
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Live Poll Question 1
Visual • 16
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Live Poll Question 2
Visual • 17
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Cumulative Poll Results YTD
Visual • 18
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How do Companies Use
SCOR
SCOR Improvement Program Racetrack
SCOR Stakeholder Identify
Workshop Support Motivation
Business Context
Summary
Pre-SCOR
Program Steps
Supply
Chain
Definition
Matrix
Strategic
Business
Summary
S:
Set the
Scope
Begin
Next
Program
Identify Motivation
Identify
Organization
SCOR Education
Project
Kickoffs
Initial
Data
Review
Confirm
Program
Scope
Geographic
Map
Improvement
Program Charter
Benefit
Summary
R:
Ready for
Implementation
Initiate Projects
Create SCOR Level
4 Processes
Test, Pilot, Roll-out
Prioritize
Projects
Opportunity
Analysis
Document
the Supply
Chain
Industry
Comparison
O:
Create
Project
Portfolio
Link Gaps to
Projects
Data
Selection
SCORmark
Competitive Benchmarking
Requirements
Program
Kickoff
Metric
Selection
Gap
Analysis
Metric
Competitive SCORcard Thread Staple Level 3 Process
Definition Requirements
Diagram
Diagram Yourself
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SCOR Execution
Optimize
Projects
Document
Initial
Projects
C:
Configure the Supply Chain
SCOR Deliverables
Visual • 20
Rollout
Approval
Preliminary
Project
Portfolio
SCOR Improvement Program Organization
Program stakeholders
Channel
partners
Executive
sponsor
Customers
Operations
management
Other
stakeholders
Executive team
Technology
team
Program
champion
Program team
Team
leader
Functional
managers
Other teams
Improvement
team
Detail Project
Subprojects
Visual • 21
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Financial
team
Supply chain
team
Improvement Program Charter Deliverable
Section
Subsection
Discussion
Purpose, table of contents,
control/maintenance
Improvement program charter overview
Scope
Which supply chains selected
Business objectives
Performance metrics
Improvement program objectives
Supply chain performance targets
Program organization
Definition of program team and
shareholders
Methodology
Five-phased SCOR racetrack
Schedule
Timeline, detailed activities, meetings
Program
Roles
Program activity responsibles
Contents
Deliverables and milestones
Detailed deliverables and milestones
Risks and dependencies
Critical risks and avoidance strategies
Benefits
Measures of success, analysis
Introduction
Program
Definition
Visual • 22
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Measuring Supply Chain Excellence
Customer Facing Metrics
Internal Facing
Metrics
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Attributes
Metrics
Parity
Advantage
Superior
Target Level
Performance
Your
Organization
Gap to
Target
Reliability
Perfect Order
Fulfillment (%)
77.5%
85.6%
93.7%
Advantage
69.2%
16.4%
Responsiveness
Order Fulfillment
Cycle Time (days)
9.1
6.5
3.9
Parity
7.1
–
Supply Chain
Flexibility (days)
45.0
33.0
21.0
15.0
–
10.0%
41.3%
Agility
Advantage
Supply Chain
Adaptability (%)
35.5%
51.3%
72.0%
Cost
Total Supply Chain
Management Cost %
Revenue
8.7%
5.6%
2.4%
Superior
8.1%
-5.7%
Asset
Management
Efficiency
Cash to Cash Cycle
Time (days)
55.4
30.5
5.5
Parity
160.5
-105.1
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Organization and Individual Talent Assessment
Gartner Maturity Stage
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Knowledge and Skills
Process-PracticePerformance-People
Orchestration
SCOR-P and M4SC
Leadership Series
Supplier’s Supplier to
Customer’s Customer
Supply Chain Community
Collaboration
CSCP – Certified
Supply Chain Professional
Supplier to Customer
Single Instance
Anticipating
CPIM – Certified in
Production and Inventory
Management
Internal Process
Reacting
Principles of Operations
Management
Single Process
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What are the benefits
realized using SCOR?
SCOR Implementation Benefits
 Average Operating Income improvement of 3% to sales
(high 4.5% - low 1.5%)
 Typical inventory turn improvements of 20%
 Delivery reliability improvement of 25%
 20% improvement in flexibility
 30% faster system implementations with 30% more
functionality
 Continuous improvement portfolios refreshed at a value
of 0.5%
 Mitigation of costs associated with risk management
Source: APICS Supply Chain Council 2002 to 2014
Visual • 26
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APICS SCC Global Fund – Illustration Only
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Who is using SCOR?
Organizational
Snapshot
404
253
91
60
CORPORATE
AFFILIATES &
SPONSORs
ACADEMIC
AFFILIATES
PUBLIC SECTOR
AFFILIATES
TOP 10 COUNTRIES
253
14
29 Confidential © 2013 APICS
131 64
17
12
RK
COUNTRY
#
1
United States
146
2
Germany
32
3
China
31
4
Switzerland
16
5
South Africa
15
6
Netherlands
14
7
United Kingdom
13
8
Canada
10
9
France
10
10
Sweden
10
How do we get engaged with the
APICS SCC?
APICS SCC Corporate Engagement Model
31
Affiliates
Sponsors
Global Employee Access to Content
Executive Summit
Research Projects
Benchmark
Digital Library
Training
Frameworks
Global License and Access to Content
Leaders of Leaders Focus Forums
Executive Summit
Digital Library
Training
Frameworks
Benchmark
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APICS SCC Individual Engagement Model
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Evangelist
Executive Sponsor
Download the SCOR app
Attend a public training class
Earn CSCP Certification
Earn the SCOR-P endorsement
Become an APICS member and
participate on a research project
Attend an executive briefing
Contact APICS SCC to discuss programs
Budget for affiliation
Host in-house SCOR class
Benchmark your company
Participate on APICS corporate advisory
board
Attend APICS SCC Executive Summit
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Continue the Conversation
Peter Bolstorff, CSCP, SCOR-P
Executive Director
APICS Supply Chain Council
pbolstorff@apics.org
Carolyn Lawrence – For Affiliate Subscription and On Boarding
Director Corporate Development
APICS Supply Chain Council
clawrence@apics.org
Melinda Spring, SCOR-P – For Research Projects
Director Programs
APICS Supply Chain Council
mspring@apics.org
Dominic Longo, CSCP – For Training
Director Corporate Services
APICS
dlongo@apics.org
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Visit APICS SCC Online
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www.apicsscc.org
Thank You!