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The Supply Chain Operations Reference (SCOR) model is a standard used throughout various industries for supply chain management. It was created in order to improve communication between supply-chain partners. The SCOR model accomplishes this by detailing the relationship between each of the five management processes within the model: plan, source, make, deliver, and return.
The SCOR model is also beneficial for inputting data in order to better analyze various configuration options, such as Make-To-Order and Make-To- Stock. The SCOR model makes this possible by describing, measuring, and evaluating the supply chain. It also supports strategic planning and encourages continual improvement of the chain.
The SCOR model focuses primarily on customer interactions, starting from when the order is placed and following through until the invoice has been paid. In addition, the SCOR model focuses on product transactions, whether that product is a service or a physical object. This includes all equipment used to create the product, as well as all materials that have been purchased from another company in order to create the product. With the SCOR model, even the supplier of a supplier is monitored for efficiency and quality.
The plan component of the SCOR model focuses on those processes that are designed to balance the demand and supply. During this step of the SCOR model, the business must create a plan to meet their production, sourcing, and delivery requirements and expectations. The next step of the SCOR model, source, involves determining those processes needed to obtain the goods and services in order to successfully support the plan portion of the model or to meet the current demand. The make step of the SCOR model involves determining the processes necessary to create the final product.
The deliver step of the SCOR model involves the processes necessary to provide the goods to the consumer. This portion of the model typically involves management of transportation, order, and distribution. The final step of the SCOR model, return, deals with those processes involved with both returning and receiving products that need to be returned. In order to properly plan for this step, the business must establish adequate customer support.
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