17. Process Map Example created in ARIS EasySCOR Suppliers Supplier Suppliers Assemble/ Package Distribution Centers Geo Ports of Entry Americas---> Europe---> Asia--->
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28. Best practices of Business No. Attributes Typical Superior 1 Delivery Performance 50% 95% 2 Fill Rates 60% 98% 3 Order Fulfillment 50% 90% 4 Production Flexibility 45 days 20 days 5 Logistics Cost to sales 10% 3% 6 Inventory days of supply 60 days 22 days 7 Inventory turns 6.5 12 8 Net asset turns 3 19
A supply chain is a group of processes (not organizations or functions) which span interactions with suppliers up to interactions with customers primarily focused on fulfilment of the customer order. Essentially wherever there are materials or services flowing to an end customer (or from a customer in a return cycle), the processes involved are supply chain processes. There is interaction with suppliers for product design, but that does not involve material flows to end customers. There is interaction with customers for sales to support the selection of materials and services, but it does not directly involve flow of materials to end customers. When we speak of benchmarking, we are measuring the performance of all the processes between the supply “input” and the customer “output”. SCOR provides very clear start and stop points.
Our industry scope is vast – SCOR was designed to be industry neutral, but at the same time relevant and accessable. Whether it’s in consumer packaged goods, Oil and Gas, Pharmeceuticals, High-Tech manufacturing, Automotive, Computers, Chemicals, or Food and Beverage, Industrials, or the biggest names in supply chain management consulting, and the worlds most prestigous academic institutions, we count them as our membership, our volunteer base, and the focus of our benefits.
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Transcription SCOR Benchmarking SCOR metrics are also organized in layers, and with five key strategic attributes. Reliability: The ability to deliver, on-time, complete, in the right condition, packaging and documentation to the right customer Responsiveness The speed at which products and services are provided Agility (Flexibility): The ability to change (the supply-chain) in order to support changing (market) conditions Cost: The cost associated with operating the supply chain Assets: The effectiveness in managing assets in support of demand satisfaction This forms the basis of the SCOR quantitative benchmarking system.
Here’s an example. Reliability – Superior. We use “perfect order fulfilment”. It has four level-2 metric “children” in SCOR. We then choose most of the level-3 children of the level-2 metrics. You don’t need to choose all of the level-2 or level-3 metrics. For instance, SCOR says that you have, for accurate document, “Conformance Documentation Accuracy” as well as “Customs Documentation Accuracy” among others. We don’t have Conformance – for instance, what you might need with chemicals. We only ship within the US, so we don’t need Customs Documentation. If the metric is not relevant, you don’t put it in the SCORcard. We now have 12 metrics in the summary. Let’s keep going.
Responsiveness was an “A for Advantage”, so we choose an advantage metric, and only level-2 metrics under it. Flexibility was “P for Parity”, so we chose upside flexibility, and then stopped. You can see the pattern. We now have 22 metrics in total in our scorecard – perfect. We have more data where we need the best performance, and the least data (but not no data) where it’s less strategic. Get a copy of SCOR, and and try this. It’s very easy.
Unlike many other supply chain improvement organizations, for us it’s been very easy to quantify and follow the value that SCOR accrues to our member organizations, and academics have been studying improvements delivered using SCOR for more than a decade – thousands of reseach papers and articles. In general, companies which use SCOR to align performance to strategy and focus on continuous improvement have the best performance of annual profits, best leverage of assets, and the best in the industry customer performance.