SCOR Model in Supply Chain Management

Supply Chain Operations Reference Model. A framework used to standardize and improve supply chain management processes, metrics and practices.

Plan, Source, Make, Deliver, Return. These are the five fundamental stages of a supply chain, from strategic planning to after-sales service.

The highest level of SCOR framework, focusing on the overall supply chain performance and key metrics.

Defines the specific configurations and capabilities within the supply chain processes identified at level 1.

Focuses on the detailed activities and tasks performed within each configuration and capability defined at level 2.

Defines the workflow and sequences of steps within the activities defined at level 3, including automation and job details.

The most detailed level of SCOR, focusing on the transactions and specific data related to each workflow defined at level 4.

A metric that measures the percentage of orders that are delivered completely and accurately, on time and without damage.

Measures how quickly a supply chain can adapt to changes in demand or supply, such as unexpected surges or disruptions.

The total cost associated with managing the entire supply chain, including logistics, inventory, and transportation.

The time it takes to convert raw materials into cash from sales.

A proven and repeatable method that has been shown to consistently deliver positive results.

A best practice that is up-to-date and not outdated, and not emerging - it's proven and reliable.

A best practice that has clearly defined goals, scope, process, and procedures.

A best practice that has been successfully implemented and tested in a real-world setting.

The overall time a product spends in the supply chain, from raw materials to the customer. It's calculated by summing the days of inventory for raw materials, work-in-progress, and finished goods.

A measure of how effectively a supply chain utilizes its resources. It's calculated by dividing the sum of distribution costs and inventory carrying costs by net sales.

Measures how efficiently a supply chain uses its working capital to generate sales. It's calculated by dividing net sales by working capital.

The average number of days raw materials are held in inventory. It's calculated by dividing the value of raw materials by the cost of raw materials.

The average number of days work-in-process is in inventory. It's calculated by dividing the value of work-in-process by the cost of production.

The average number of days finished goods are held in inventory. It's calculated by dividing the value of finished goods by the cost of goods sold.

Measures how efficiently a company uses its inventory. It's calculated by dividing the cost of goods sold by the average inventory value.

Measures how quickly a company collects payments from its customers. It's calculated by dividing sales by the average accounts receivable value.

Measures how quickly a company pays its suppliers. It's calculated by dividing the cost of goods sold by the average accounts payable value.

The time it takes for a company to convert its inventory and receivables into cash. It's calculated by adding the number of days in inventory, days in accounts receivable, and subtracting the number of days in accounts payable.

The collaborative effort among different stages of a supply chain to maximize overall profitability. It involves sharing information and coordinating decisions to optimize the flow of goods and services.

The process of aligning sales forecasts with production and inventory plans to ensure supply meets demand. It involves coordinating decisions across different departments, such as sales, marketing, production, and finance.

Two contrasting approaches to production and supply chain management. In a push system, products are produced based on forecasts and pushed through the supply chain. In a pull system, production is triggered only when a customer order is received.

The ability to track and monitor goods and information throughout the supply chain in real-time. It involves sharing data across different stages and using technology to track goods and inventory movements.

A fundamental decision in supply chain management regarding whether to perform a specific task internally or contract it out to a third-party provider.