SCOR model is built on six management practices:
Planning procedures include resources, requirements, and the communication chain for a process to ensure it is aligned with the company’s goals. It means creating best practices to improve SCM efficiency. While considering the compliance of transportation inventory, assets, and other essential elements of SCM.
Source processes include the purchase of goods and services to satisfy planned or actual market demands. It includes buying assay, receipt, and the delivery of material that is received and agreements with suppliers.
Make is a term used to describe processes that take finished goods and turn them into market-ready products to meet current or planned demand. The process defines the times when goods have been created to order, made from stock, or engineered for order. It also includes product management and billing of materials along with all the needed apparatus and infrastructure.
Any process involved in the delivery of final items and services to meet the needs of either planned or actual demand falls under this category, including order, transportation and distribution, and management.
Return procedures involve returning or receiving returned items, whether from suppliers or customers. It also includes post-delivery customer service procedures.
It covers procedures that are a part of SCM, like business rules facility performance, SCM contracts, data resources compliance, and risk management.
SCOR model performance metrics
Three levels are utilized to evaluate the performance of supply chains. These levels aid in standardizing the performance of supply chains to allow companies to be assessed against other businesses. Even when they’re operating differently. Smaller companies can be compared to larger organizations or companies can assess the performance of their supply chains against those from other sectors.
There are more than 250 SCOR indicators in the framework. They are classified according to five performance characteristics that include reliability, responsiveness flexibility, cost, and asset management efficiency. Businesses can use these metrics to set expectations for the supply chain by determining the performance characteristics to prioritize and which areas where the company can perform at a reasonable speed.
The three levels are:
Assuring the scope of operations, which in SCOR Digital Capabilities: Model and Digital Standard.
The supply chain is configured comprising segments, geographic regions, and products. At Level 2, the metrics are high-level and evaluated across several SCOR processes. The subtypes are categories that are part of those parent categories that are found in Level 1.
The Level 3:
Process Elements inform the most critical business processes throughout the chain. At this point, you can link the Level 2 processes or categories to activity at Level 3.