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SCOR Model: a brief introduction

There are several reference models in Supply Chain Management, which aim to guide companies regarding the best practices in the area and how to implement them. Some models appear recurrently in research and publications on the subject, with the SCOR model deserving special attention, the most cited in articles, theses and cases in the area.

O Supply Chain Operations Reference (SCOR) was developed in 1996 by Supply Chain Council (SCC) and AMR Research, currently Gartner, becoming a reference for its pioneering spirit. According to Supply Chain Council on its website (http://www.apics.org/sites/apics-supply-chain-council/frameworks), the SCOR model provides a unified framework that links business processes, metrics, best practices, and technology resources to support communication and integration between trading partners and to improve the effectiveness of supply chain management.

The SCOR model can be used to identify, measure, reorganize and improve supply chain processes through a cyclical approach with identification of supply chain structure and players, performance measurement, redefinition of processes based on best practices and goal comparison. It uses, for these purposes, well-known concepts, such as process reengineering, benchmarking and measurement of performance indicators in a structure that brings together several functional areas.

When originally developed in 1996, the SCOR model considered four fundamental processes in the supply chain: plan, buy, produce and deliver. Later, in 2001, when reverse logistics operations began to be discussed and became relevant in some supply chains, a fifth process – feedback – was added to broaden the scope of the model. Each of these processes is developed at four levels of detail, as shown in Table 1.

 

Table 1 - Levels of detail of the SCOR model

Level 1 Processes Set of sequential and related activities that add value to suppliers' inputs to meet customer needs Primary metrics and measures of performance against the competition are defined for each of the 5 SCOR processes
Level 2 Sub-processes Parts of the process that logically relate to accomplishing a specific goal Configures organizations operations based on SCOR processes, looking for inefficiencies and evaluating the impact of a potential improvement
Level 3 Tasks Actions that occur within a sub-process, performed by a person or department to produce a particular result Defines sub-process elements and establishes performance indicators, investigating best practices and developing support systems
Level 4 Activities Work or errand with the use of a specific resource Recognizing the specificity of each business, activities at this level are not defined based on a standard model and seek to improve actions

 

Figure 1 exemplifies the details of the SCOR model.

SCOR model

Figure 1 - SCOR Model

Source: adapted from NASLUND and WILLIAMSON, 2010

 

The integration of purchasing, production and distribution functions, proposed by the SCOR model, creates a continuous chain of activities for all internal operations of the company and, potentially, throughout the entire interorganizational supply chain. However, like any other reference model, it is necessary to understand its limitations and the need to adapt its structure to specific situations. Thus, despite not being a panacea, SCOR can offer insights and ways to organize SCM processes.

 

References

NÄSLUND, D.; WILLIAMSON, S. What is Management in Supply Chain Management ? – A Critical Review of Definitions, Frameworks and Terminology. Journal of Management Policy and Practice, v. 11, no. 4, p. 11–28, 2010.

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Executive Partner of ILOS. Graduated in Production Engineering from EE/UFRJ, Master in Business Administration from COPPEAD/UFRJ with extension at EM Lyon, France, and PhD in Production Engineering from COPPE/UFRJ. He has several articles published in periodicals and specialized magazines, being one of the authors of the book: “Sales Forecast: Organizational Processes & Qualitative and Quantitative Methods”. His research areas are: Demand Planning, Customer Service in the Logistics Process and Operations Planning. He worked for 8 years at CEL-COPPEAD / UFRJ, helping to organize the Logistics Teaching area. In consultancy, he carried out several projects in the logistics area, such as Diagnosis and Master Plan, Sales Forecast, Inventory Management, Demand Planning and Training Plan in companies such as Abbott, Braskem, Nitriflex, Petrobras, Promon IP, Vale, Natura, Jequití, among others. As a professor, he taught classes at companies such as Coca-Cola, Souza Cruz, ThyssenKrupp, Votorantim, Carrefour, Petrobras, Vale, Via Varejo, Furukawa, Monsanto, Natura, Ambev, BR Distribuidora, ABM, International Paper, Pepsico, Boehringer, Metrô Rio , Novelis, Sony, GVT, SBF, Silimed, Bettanin, Caramuru, CSN, Libra, Schlumberger, Schneider, FCA, Boticário, Usiminas, Bayer, ESG, Kimberly Clark and Transpetro, among others.

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