SCOR PROFESSIONAL TRAINING
Introduction to the SCOR Supply Chain
Operations Reference Model: Overview
Introduction: Course Leader
Name
Company/organization
Position
Instructor
Introduction
APICS certifications
Experience with SCOR
Other accomplishments
APICS training experience
2
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Introductions: Participants
Name
Company/organization
Position
Introduce
yourself
APICS certifications
Other accomplishments
SCOR experience
Your objectives
3
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Learning Objectives
▪ Explore the origins and goals of the SCOR Reference Model framework.
▪ Understand the structure of the SCOR Reference Model framework
sourcebooks.
▪ Work with the five central parts of the SCOR framework: performance,
processes, practices, people, and green SCOR.
▪ Develop and work with a SCOR improvement program.
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SCOR OVERVIEW
Introduction to the SCOR Framework
What is SCOR?
SCOR is an acronym for supply chain operations reference model, which was
developed to assist businesses in understanding, structuring, and evaluating the
performance of supply chains.
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SCOR Definition
The SCOR model describes the business activities associated with satisfying a
customer’s demand, which include plan, source, make, deliver, and return. Use of the
model includes analyzing the current state of a company’s processes and goals,
quantifying operational performance, and comparing company performance to
benchmark data. SCOR has developed a set of metrics and best practices
information that companies can use to evaluate their supply chain performance.
APICS Dictionary
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About SCOR: A Process Framework
Combining four techniques into a single integrated approach
Business Process
Improvement
Performance Benchmarking
Best Practices Analysis
Organizational Design
Capture the “as-is”
business activity and
design the future “to-be”
state
Quantify relative
performance of similar
supply chains and establish
internal targets
Identify practices and
software solutions that
result in significantly better
performance
Assess skills and
performance needs and align
staff and staffing needs to
internal targets
Practices
People (skills)
Process Reference Framework
Process
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Performance (metrics)
Anatomy of SCOR Frameworks
Product and process design
(DCOR)
Sales and support
(CCOR)
Supply chain
operations
reference model
Management for supply chain
(M4SC)
Product life cycle operations reference (PLCOR)
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SCOR Reference Sources
Complete SCOR Model Reference sourcebooks. Two
volumes containing the complete SCOR reference
framework
A quick reference guide providing a detailed
summary of SCOR Processes, Metrics, Practices,
and People on a single easy-to-use card
An easy to access and use application for mobile
devices available through iTunes, App Store, and
Android Store – Search: APICS SCOR
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Advantages of Using the SCOR Framework
 Scope of the SCOR framework applies to the entire supply chain
 Orients supply chain improvements around standardized set of performance,
process, practice, and skills metrics
 Enables supply chain performance and practice benchmarking
 Centers supply chain improvement efforts on creating value for customers
 Applies detailed supply chain metrics to measure supply chain performance
 Provides metric and activity alignment across organizational boundaries
 Establishes a common repository of supply chain performance terms and toolsets
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SCOR OVERVIEW
Using the SCOR Reference Sourcebook
Structure of the SCOR Reference Sourcebook
The SCOR reference sourcebook consists of five main sections:
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Performance
Standard metrics to describe process performance and define
strategic goals
Processes
Standard descriptions of management processes and process
relationships
Practices
Management practices that produce significant better process
performance
People
Standard definitions for skills required to perform supply chain
processes
Green
Standard definitions for sustainable business models and
environmental accounting
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SCOR Codification
• Each of the four SCOR sourcebook sections has its own codification nomenclature.
• SCOR Performance and Processes have a hierarchy of SCOR activities.
• SCOR Practices are determined by three separate practices: emerging, best, and
standard. Each practice contains a set of relevant practice activities.
• SCOR People are determined by a single-level list of skills and processing
activities.
• Green SCOR is determined by a single-level list of skills and processing activities.
• Most of the SCOR activities are crossed referenced across the four SCOR
sourcebook sections.
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Reading SCOR Tables
ID
name
definition
metrics
practices
skills
outputs
inputs
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Reading SCOR Graphics
process ID
process steps
inputs
SCOR graphics
should be
considered as
example process
configurations.
Different supply
chains and
practices may
require different
sequences and/
or workflow.
outputs
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SCOR OVERVIEW
Review of SCOR Performance
Objectives of SCOR Performance
Performance (SCOR section 1) helps companies:
 Translate business strategy to supply chain strategy: How closely is the supply
chain strategy meeting business plan objectives?
 Measure supply chain performance: How are we doing, how are we trending?
 Understand relative performance compared to competitors: How are we doing
compared to our supply chain strategy
 Identify and monitor processes that most likely cause the performance gaps:
What improvement targets should we pursue?
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Supply Chain Performance: Definitions
Definitions:
• Performance attribute: a characteristic used to describe a strategy. Performance attributes serve as
classification for metrics and formulate strategic direction
• Key performance indicator (KPI): a metric to measure the overall performance or state-of-affairs.
SCOR level 1 metrics are considered KPIs
• Metric: a standard for measurement
• Measurement: an observation that reduces the amount of uncertainty about the value of a
quantified metric
SCOR metrics = diagnostic metrics
• Monitor and diagnose overall supply chain health.
• Diagnostic relationships (hierarchy) enables gap analysis.
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SCOR Performance Attributes
Internal
Customer
Attribute
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Strategy
Reliability (RL)
Consistently getting the orders right, product meets quality
requirements
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 operating the supply
chain
Assets (AM)
The effectiveness in managing the supply chain’s assets in
support of fulfillment
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SCOR Performance Attributes: Level 1
Customer
Attribute
Level 1 Strategic Metrics
Reliability
RL.1.1 Perfect order fulfillment
Responsiveness
RS.1.1 Order fulfillment cycle time
AG.1.1 Upside supply chain flexibility
AG.1.2 Supply chain upside adaptability
Agility
AG.1.3 Downside supply chain adaptability
AG.1.4 Overall value at risk (VAR)
Internal
Cost
Asset management
efficiency
CO.1.001 Total cost to serve
AM.1.1 Cash-to-cash cycle time
AM.1.2 Return on supply chain fixed assets
AM.1.3 Return on Working Capital
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SCOR OVERVIEW
Review of SCOR Processes
Anatomy of SCOR Processes
Source
Make
Return
Deliver
Customer processes
Supplier processes
Plan
Process, arrow indicates material flow direction
Enable
Process, no material flow
Information, goods, financial flow
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Objectives of SCOR Processes
SCOR Processes help companies:
 Document the consensus view of how the business and the enterprise supply
chain is organized—What do we do and where? (as-is)
 Document the consensus view of the capabilities of the business and the
enterprise supply chain—How do we do this? (as-is)
 Document and test alternative ways to organize the business and the enterprise
supply chain—Test different scenarios (what-if)
 Document the desired way to organize the business and the enterprise supply
chain—What will we do and where? (to-be)
 Document future processes—how will we do this going forward? (to-be)
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SCOR Processes and the Supply Chain
Plan
Plan
Deliver
Return
Source
Make
Return
Enable
Plan
Deliver
Return
Suppliers’
Supplier
Supplier
Internal or external
Source Make Deliver
Return Enable
Return
Your organization
Source
Return
Make
Enable
Deliver
Return
Customer
Internal or external
Source
Return
Customer’s
Customers
The integrated process of plan, source, make, deliver, return, and enable
spanning from the suppliers’ supplier to the customers’ customer
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Question: Source Process Flows

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Which of the following flows is/are correct?
sS2.1
sS2.1
Schedule
Schedule
Product
Product
Deliveries
Deliveries
sS2.2
Receive
Product
sS2.3
Verify
Product
sS2.4
Transfer
Product
sS2.5
Authorize
Supplier
Payment
sS2.1
sS2.1
Schedule
Schedule
Product
Product
Deliveries
Deliveries
sS2.5
Authorize
Supplier
Payment
sS2.2
Receive
Product
sS2.3
Verify
Product
sS2.4
Transfer
Product
sS2.1
sS2.1
Schedule
Schedule
Product
Product
Deliveries
Deliveries
sS2.2
Receive
Product
sS2.4
Transfer
Product
sS2.5
Authorize
Supplier
Payment
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SCOR OVERVIEW
Review of SCOR Practices
Introduction to SCOR Practices: Definition
The Practices section of the SCOR reference manual provides a collection of industry-neutral
practices companies have recognized for their value. A practice is a unique way to configure a
process or set of processes.
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Four Types of SCOR Practices: Definitions
•
Emerging practice: a practice that introduces new technology, knowledge, or radically different
ways of organizing processes
•
Best practices: practices that are current, structured, and repeatable and have a proven and
positive impact on supply chain performance
•
Standard: practices that have been used by a wide range of businesses over a long period of
time and that produce acceptable, positive results
•
Declining: practices that have been used for long periods of time but have become obsolete
and even harmful to business and supply chain performance
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Classification of Practices
Practices by classifications:

order management

business process analysis/improvement

people management (training)

customer support

planning and forecasting

distribution management

product lifecycle management

information management

purchasing

inventory management

reverse logistics

manufacturing/production
material handling
risk/security management



new product introduction

sustainable supply chain management

order engineering (ETO)

transportation management

warehousing
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Levels of SCOR Practices
Emerging
practices
Standard
practices
Best practices
SCOR practices repository
SCOR processes
SCOR
practices
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Level 2 processes
Application
Level 3 processes
Best Practice Selection
Are all best practices equally important for you?
– SCOR contains more than 170 practices today: do you need all?
– Implement a best practice IF it makes sense for your specific processes, business,
or industry.
Low return
High return
Low effort/risk
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quick
wins
nice to have
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High effort/risk
Sponsor
issue
consider
carefully
How to determine fit?

Assign each best practice a pin.

Determine risk, investment.

Determine return.

Push the pin in the resulting quadrant.

Some pins may not make the table at all if they are not
appropriate for your supply chain, business or industry.
Example: Practices Benchmarking
Benchmarking results for a benchmark of 5 supply chains
120
100
Not Relative
80
UnPlanned
60
Planned
In Process
40
Mature
20
0
A
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B
C
D
E
SCOR OVERVIEW
Review of SCOR People
Introduction to SCOR People: Definition
The People section of the SCOR reference manual introduces standards for managing talent in
the supply chain. This skills management framework within SCOR compliments process
reference, metrics reference, and practice reference components with an integrated view of
supply chain skills.
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Key Elements of the People Section

Skill: Capacity to deliver pre-determined results with
minimal input of time and energy

Experience: The knowledge or skill acquired by
observation or active participation

Aptitude: A natural, acquired, learned, or developed
ability to perform a certain kind of work at a certain level.

Training: A particular skill or type of behavior learned through instruction over a period of time

Competency level: The state or quality of being qualified, having the ability, to perform a specific role
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SCOR Competency Levels
The state or quality of being qualified, having the ability to perform a specific role
Level
Characteristics
Expert
Intuitive understanding of the situation and zooms in on the central
aspects; experts understand what is possible and apply experience and
knowledge to master new situations.
Proficient
Sees the situation as a whole and acts from personal knowledge and
conviction; proficients can prioritize importance based on situational
aspects.
Competent
Goal oriented; possesses the skills to perform necessary understands
activities and can determine priorities to reach goals
Beginner
Has fully not mastered work skills and has a limited "situational
perception" of work activities
Novice
New to the field or activity; a novice needs standard/written procedures or
step-by-step detailed instructions; no ability to make judgments based on
problem situations
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SCOR People Competency Grid
Linking People competencies to SCOR.
Novice
Beginner
Competent
Proficient
Expert
Instructions
Written
Familiar
Familiar
Familiar
Familiar
Orientation
Task
Task
Goal
Goal
Goal
Decision
making
Analytical
Analytical
Analytical
Intuitive
Intuitive
Problem
recognition
Measuring
Measuring
Measuring
Measuring
Intuitive
In SCOR
terms, focus
on:
Processes
Practices
Metrics
Projects
Domains
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Defining Skills
 Each skill is defined by its description
Performance
(metric)
 And by association to: experiences,
training and aptitudes
Experience
Process
Practice
(best
practice)
People
(skill)
Aptitude
Training
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 Experiences, training, and aptitudes
are not directly connected to any
other framework element.
SCOR OVERVIEW
Review of Green SCOR
Introduction to Green SCOR: Definition
The Green SCOR section of the SCOR reference manual introduces a set of strategic
environmental metrics that effectively allow the SCOR Model to be used as a
framework for environmental sustainability and audit.
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The Five Green SCOR Metrics
Metric
Units
Basis
Tons CO2
equivalent
This is the unit of measure currently used for green house
gas emissions and is a measure of the climate impact from
CO2 and other global warming air emissions.
Tons or kg
This includes emissions of major pollutants—Cox, Nox, Sox,
Volatile Organic Compounds (VOC) and Particulate. These
are the major emissions that the US EPA tracks.
Liquid waste
generated
Tons or kg
This includes waste that is either disposed of or released to
open water or sewer systems (these emissions are
generally listed on water emission permits).
Solid waste
generated
Tons or kg
The total solid waste generated by the process
Percent
The percent of the solid waste that is recycled
Carbon
Emissions
Air pollutant
emissions
Percent
recycled
waste
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Green SCOR Levels 1 and 2
GS.1.001 Total Supply chain carbon footprint
Level 1
GS.1.002 Total supply chain environmental footprint
GS.1.001
GS.2.001 Plan carbon emissions
GS.2.002 Source carbon emissions
GS.2.003 Make carbon emissions
GS.2.004 Deliver carbon emissions
GS.2.005 Return carbon emissions
GS.1.002
GS.2.006 Total supply chain air emissions
GS.2.007 Total supply chain liquid emissions
GS.2.008 Total supply chain solid emissions
GS.2.009 Total supply chain percent recycled
Level 2
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Green SCOR Level 3
GS.2.001 Plan carbon emissions
5 Level 3 Metrics
GS.2.002 Source carbon emissions
2 Level 3 Metrics
GS.2.003 Make carbon emissions
2 Level 3 Metrics
GS.2.004 Deliver carbon emissions
2 Level 3 Metrics
GS.2.005 Return carbon emissions
2 Level 3 Metrics
GS.2.006 Total Supply chain air emissions
5 Level 3 Metrics
GS.2.007 Total Supply chain liquid emissions
5 Level 3 Metrics
GS.2.008 Total Supply chain solid emissions
5 Level 3 Metrics
GS.2.009 Total supply chain percent recycled
6 Level 3 Metrics
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Green SCOR Table: Level 2
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SCOR OVERVIEW
SCOR Improvement Program:
Concepts and Practices
Applying the SCOR Framework
How do project teams use the SCOR Reference Model framework to create and
continuously apply a program capable of achieving sustainable supply chain
improvement?
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SCOR Improvement Program Racetrack
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SCOR Improvement Program Workshop Objectives

Learn how to organize a SCOR supply chain improvement program.

Learn how to use the SCOR Model Reference framework to develop an effective supply chain improvement program.

Develop an understanding of the typical steps of a SCOR improvement program.

Develop an understanding of how to use the SCOR supply chain improvement program racetrack.

Develop knowledge and skills to complete key implementation program deliverables.

Explore a case study illustrating the application of the SCOR program racetrack and the SCOR framework.
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SCOR Global Organization: Example
Corporate
Sales
Operations
EMEA
Planning
Americas
Merchandising
Support
APAC
Americas= North, Middle and South America, EMEA = Europe, Middle East & Africa, APAC = Asia and Pacific
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Supply Chain Definition Matrix: Example
Criteria: geographical region, country, products
Customers: GE
Mp3 Inc.
product
groups
GB
Germany
Belgium
Netherlands
Mp3
players
300*
125
95
Phones
200
95
planned
PCs
35
England
and
Ireland
250
SEU
France
Italy
Spain
265
110
75
185
55
21
* Sales expressed in millions
Adapted from Supply Chain Excellence by Peter Bolstorff and Robert Rosenbaum ©2012 Peter Bolstorff
and Robert Rosenbaum, AMACOM books, division American Management Association International, New
York, NY, p. 47.
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Supply Chain Geographic Map: Example
Supply Chain Geographic Map
S-Mart
[sS1]
North Warehouse
[sS1, sD1]
Packit
[sD]
Auto Bros
[sS1]
Corrugated
[sD]
CostKing
[sS1]
Central Warehouse (W1)
[sS1, sM1, sD1]
CarFix
[sS1]
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Oilco International
[sD]
SCORmark™ Benchmarking: Example
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SCORmark™ Benchmarking: Level 2 Metrics
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Future State Map: Example
1
S-Mart
[sS1]
North Warehouse
[sS1, sD1]
7
Packit
[sD]
2
Auto Bros
[sS1]
Corrugated
[sD]
CostKing
[sS1]
13
Central Warehouse (W1)
[sS1, sM1, sD1]
2 CarFix
[sS1]
5
55
2
Oilco International
[sD]
The number represents inventory days of supply owned by Sample, Inc.
© 2017 APICS. All rights reserved.
Future State Thread Diagram
sP1
sP
sP
sP
sP2
sP3
sP4
sP
sP4
sP
3
2
1
7
7
sD
2
sS1 sD1
2
sS1
sM1 sD1
sD
2
sS1
sS1
sD
1
sS1
sS1
sS1
Oilco
Packit
Corrug
ated
Supplier
5
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W1 Central Warehouse
W3 North
Warehouse
S-Mart
Sample, Inc.
The number represents inventory days of supply owned by Sample, Inc.
© 2017 APICS. All rights reserved.
Auto
Bros
Cost
king
Customers
Carfix
Alternative Process Workflows: Example
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Prioritization Matrix
Effort & Risk
High
Low
A1 A
A3
E
Return
A4
B
D
Low
C
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High
2
A. CPFR
1. Retail sales out data
2. Retail inventory data
3. Retail promotions data
4. Group promotions data
B. Monthly management review
1. Aging status flags
2. Aging reporting
3. Monthly review
C. 24-hour testing equipment
D. Return ownership transfer
E. Renegotiate contracts
Return on Investment: CPFR Projects
Factors
Initial
Year 1
Annual incremental
Year 1
Year 2
Year 3
CPFR Project
150 000
Software licensing
100 000
12 500
12 500
12 500
Total Cost
250 000
12 500
12 500
12 500
Inventory reduction
42 000
42 000
42 000
Reduction in expedited shipments
10 500
10 500
10 500
Lost revenue due to stock outs
48 750
48 750
48 750
101 250
101 250
101 250
-161 250
-72 500
16 250
-61 %
-26 %
6%
Total opportunity
Net Value
Return on Investment
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Begin Next Improvement Project
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Continue the Conversation
Peter Bolstorff, CSCP, SCOR-P
Dominic Longo, CSCP – Key Account Business Development
▪ Executive Vice President, Corporate Development
▪ Director, Corporate Development
▪ APICS
▪ APICS
▪ pbolstorff@apics.org
▪ dlongo@apics.org
Carolyn Lawrence, SCOR-P – SCOR Product Group
Josh Meyers, CSCP – Key Account Business Development
▪ Director, Corporate Development
▪ Director, Corporate Development
▪ APICS
▪ APICS
▪ clawrence@apics.org
▪ jmeyers@apics.org
Melinda Spring, SCOR-P – Research Projects
▪ Director, Corporate Programs
▪ APICS
▪ mspring@apics.org
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SCOR OVERVIEW