The SCOR model is intended to help standardize the process and create a measurable way to track results. It works across industries using common definitions that apply to any supply chain process. Using the SCOR model, businesses can judge how advanced or mature a supply chain process is and how well it aligns with business goals.
SCOR Primary Processes
The SCOR model is based on six management processes:
The plan process includes determining resources, requirements, and the chain of communication for a process to ensure it aligns with business goals. This includes developing best practices for supply chain efficiency.
The source process covers procuring goods and services to meet planned or actual demand.
The make process includes taking finished products and making them market-ready to meet planned or actual demand.
The deliver process includes order management, warehousing, and transportation. It also includes receiving orders from customers and invoicing them once product has been received.
The return process covers steps for returning or receiving returned products for any reason, either from customers or suppliers. These processes extend into post-delivery customer support.
This includes processes associated with the management of the supply chain. These processes include management of: business rules, performance, data, resources, facilities, contracts, supply chain network management, managing regulatory compliance and risk management.
Measuring SCOR Performance
There are three levels used to measure supply chain performance that help standardize supply chain performance metrics so that companies can be evaluated against other businesses.
Level 1: Defining the scope of the supply chain, including geographies, segments, and context. At this level, the focus is on the six main process configurations described above.
Level 2: Configuration of the supply chain, including geographies, segments, and products. At Level 2, metrics are high level and evaluated across multiple SCOR processes. This level includes subtype categories that fall under the “parent” categories found in Level 1.
Level 3: Process element details, identifying key business activities within the chain. They represent the best practice detailed processes that belong to each of the Level 2 “parents”.