1. Overview Presentation Supply Chain Operations Reference-model (SCOR)
April 2005

2. The SCC is an independent, not-for-profit, global corporation with membership open to all companies and organizations interested in applying and advancing state-of-the-art supply chain management systems and practices.
Over 800 Company Members
Cross-industry representation
Chapters in Australia/New Zealand, Brazil, Europe, Japan, North America, Southern Africa, and South East Asia with petitions for additional chapters pending.
The Supply-Chain Council (SCC) has developed and endorsed the Supply Chain Operations Reference-model (SCOR) as the cross-industry standard for supply chain management

3. SCC Organization - Chapters and Staffing
SCC Global Headquarters
Washington D. C.
Japan Chapter Tokyo, Japan
NEC
Europe
Brussels, Belgium
Modus Media
North America Chapter Washington D.C.
Disney
South East Asia Chapter Singapore
Venture Inc.
Brazil Chapter
Southern Africa Johannesburg, South Africa
UTi
Australia/New Zealand Chapter Sydney, Australia

4. SCC Leadership Teams Europe Board of Directors South East Asia
Diversey Lever– C
Siemens AG – VC
Euro-Chain
Bomardier Tansportation
BASF AG
Borealis
SAP AG
Oracle EMEA
Rhodia
Swiss Federal Institute of Technology
EDS UK and SA
Board of Directors
Disney - C
Eaton - VC
DaimlerChrysler MOPAR
Business Process Training Center Europe
PeopleSoft
I2 Technologies
Georgia Institute of Technology
IBM
SCE Limited
ICI Supply Chain
Phillips Lighting
PRTM
McCormick & Company, Inc. HP
South East Asia
Vemture Corporation – C
Phillips CFT – VC
Modus Media
Deloitte
Singapore Institute of Mfg. Technology
SCM Institute
Autoscan Technology
Polyolefin Company
Asia Pacific Breweries
I2 Technologies
iPerintis Sdn Bhd
Australia/New Zealand
Owens Global Logistics – C
Health Purchasing Victoria – VC
Oracle
RMIT University
MI Services
BHP
EAN Australia
North America
Toys R Us - C
Raytheon
IBM
Adjoined Consulting
Avicon
Bayer Chemicals
The Boeing Company
Center for Supply Chain Research / Penn State
Air Products and Chemicals
SAP
Japan
NEC – C
JBC Create – VC
Mitsui Global Strategic Studies
Olympus Optical
EXA
Chubu Electric Power
J.D. Edwards
Nihon Unisys
Hitachi
Hokkaido University
Matsushita Electric Industrial
Yamaha
Toray Systems Center
Elections Pending
South Africa
Brazil
China

5. Membership Member by Type Members by Region
800+ SCC members,
Composition
40%: Practitioners
25%: Enabling Technology Providers
20%: Consultants
15%: Universities, Associations, Government Organizations

6. Current Technical Projects
C – Paul Schiller –
BP Chemicals
SCOR Technical Development
Steering Committee
Best Practice
Returns
C- Paul Janke (Nokia)
C- Lt Col Scott Koster (USMC)
Metrics
MRO Returns
C- Michael Memmel - Siemens
C- Joe Burak (Boeing)

7. Supply Chain Operations Reference-Model (SCOR) Overview

8. What is a process reference model?
Process reference models integrate the well-known concepts of business process reengineering, benchmarking, and process measurement into a cross-functional framework
Business Process Reengineering
Best Practices Analysis
Process Reference Model
Benchmarking
Capture the “as-is” state of a process and derive the desired “to-be” future state
Quantify the operational performance of similar companies and establish internal targets based on “best-in- class” results
Characterize the management practices and software solutions that result in “best- in-class” performance
Capture the “as-is” state of a process and derive the desired “to-be” future state
Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results
Characterize the management practices and software solutions that result in “best-in- class” performance 34

9. SCOR is structured around five distinct management processes
Plan
Source
Deliver
Make
Deliver
Deliver
Source
Make
Source
Make
Deliver
Source
Return
Return
Return
Return
Return
Return
Return
Return
Customer’s Customer
Suppliers’ Supplier
Supplier
Your Company
Customer
Internal or External
Internal or External
SCOR Model
Building block approach
Source connects to supplier
Deliver connects to customer
Not all companies have make
We can model as far up or down the supply chain as we view important (not limited to two tiers)
Customers and / or suppliers can be internal or external
Building Block Approach
Processes Metrics
Best Practice Technology 21 4

10. Supply-Chain Operations Reference-model (SCOR) 7.0 - Processes
Plan
P1 Plan Supply Chain
P2 Plan Source
P3 Plan Make
P4 Plan Deliver
P5 Plan Returns
Source
Make
Deliver
S1 Source Stocked Products
M1 Make-to-Stock
D1 Deliver Stocked Products
Suppliers
S2 Source MTO Products
M2 Make-to-Order
D2 Deliver MTO Products
Customers
S3 Source ETO Products
M3 Engineer-to-Order
D3 Deliver ETO Products
D4 Deliver Retail Products
Return Deliver
Return Source
Enable

11. SCOR Boundaries SCOR Spans: All supplier / customer interactions
Order entry through paid invoice
All physical material transactions
From your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
All market interactions
From the understanding of aggregate demand to the fulfillment of each order
Returns

12. SCOR Boundaries (cont’d)
SCOR does not include:
Sales administration processes
Technology development processes
Product and process design and development processes
Some post-delivery technical support processes
SCOR assumes but does not explicitly address
Training
Quality
Information Technology (IT) administration (non-SCM)

13. SCOR Project Roadmap SCOR Level 1 SCOR Level 2 SCOR Level 3
Analyze Basis
of Competition
Competitive Performance Requirements
Performance Metrics
Supply Chain Scorecard
Scorecard Gap Analysis
Project Plan
Operations Strategy
SCOR Level 1
AS IS Geographic Map
AS IS Thread Diagram
Design Specifications
TO BE Thread Diagram
TO BE Geographic Map
Configure
supply chain
Material Flow
SCOR Level 2
Align
Performance
Levels, Practices, and Systems
AS IS Level 2, 3, and 4 Maps
Disconnects
Design Specifications
TO BE Level 2, 3, and 4 Maps
Information
and Work Flow
SCOR Level 3
Point 1
SCOR is applied in 4 steps...Analyze Basis of Competition defines performance needs, Configure Supply Chain maps the high level material flow, Align Performance, Practices, and Systems maps the general transaction flow, and Implement Design organizes the list of projects to improve SC performance.
Point2
This should also be drawn on POST IT POSTER and displayed on the wall OR have one drawn up in advance using VISIO.
Implement
supply chain Processes and
Systems
Develop, Test, and Roll Out
Organization
Technology
Process
People

14. Mapping material flow Manufacturing (S1, D1) (SR1,DR1,DR3) Warehouse
European Supplier
(S1, S2, M1, D1) (SR1,,DR1)
Warehouse
Warehouse
(S1) (SR1,SR3)
(S1) (SR1,SR3)
(D2) (DR1)
(S1, D1) (SR1,DR1,DR3)
Latin American
Suppliers
Other Suppliers
(S1, D1) (SR1, DR3)
(D1)
(D1)
Warehouse
(S1) (SR1,SR3)
(S1) (SR1,SR3)
(S1, D1) (SR1,DR1,DR3)

15. Mapping the execution processes
Americas
Distributors S1
SR1
European RM Supplier S2 M2 D2
SR3 S2 M1 D1 S1 D1 S1
DR1
SR1
DR1
SR1
DR1
SR1
DR3
SR3
DR3
SR3
Point1
Spend the time in the Model Binder, finding a good cheat sheet AND articulating what each element means...Note also that we are NOT including Suppliers Supplier and Customer's Customer for th NEW example.
Point2
Be sure to articulate that ALPHA is comprised of both M and D.
Point3
Use a WHITE BOARD and model the actual activity of drawing before putting the diagram on the screen. S1
Key Other RM Suppliers S1 M1 D1
Alpha Regional
Warehouses
RM Suppliers
ALPHA
Distributors

16. Identifying Plan Activities
European RM Supplier S2 M2 D2 S1 M1 S2 M1 D1 S1 D1 S1
Key Other RM Suppliers D1 S1
Alpha Regional
Warehouses
Consumer
RM Suppliers
ALPHA
Distributors 28 45

17. Linking Supply Chain Performance Attributes and Level 1 Metrics

18. Supply Chain Scorecard & Gap Analysis NEW Product Line - Representative of All Scorecards
Supply Chain SCORcard v. 7.0
Performance Versus Competitive Population
Overview Metrics
SCOR Level 1 Metrics
Actual
Parity
Advantage
Superior
Value from Improvements
Supply
Chain
Reliability
Perfect Order Fulfillment 0%
80%
85%
90%
$30M Revenue
EXTERNAL
Responsiveness
Order Fulfillment Cycle Time
35 days
7 days
5 days
3 days
$30M Revenue
Upside Supply Chain Flexibility
97 days
Key enabler to cost and asset improvements
82 days
55 days
13 days
Flexibility
Upside Supply Chain Adaptability 0%
Downside Supply Chain Adaptability
50%
A quick assessment of Level 1 metrics revealed that the supply chain was a significant contributor to the overall profit loss Alpha was experiencing. In all cases, Alpha’s performance was below the average for its industry.
Cost
Total SCM Management Cost
19%
13% 8% 3%
$30M Indirect Cost
INTERNAL
Cost of Good Sold
54%
Cash-to-Cash Cycle Time
196 days
80 days
46 days
28 days
$7 M Capital Charge
Assets
N/A
Return on SC Fixed Assets

19. Decomposing Metrics Revenue Accounts Receivable Cash Flow
Perfect Order
Fulfillment
Cycle Time
Supplier
on time delivery
Schedule
Achievement
Perfect Order
Fulfillment
On Time
On Time
Delivery
Performance
In Full
In Full
Docs
Docs
European RM Supplier S2 M2 D2
Damage
Damage
Supplier
on time delivery
Perfect Order
Fulfillment S2
Key Other RM Suppliers S1 M1 D1 M1 D1 S1 D1 S1 S1
Alpha Regional
Warehouses
Consumer
RM Suppliers
ALPHA
Consumer

20. Performance Measurement
Revenue
Accounts Receivable
Cash Flow
Perfect Order
Fulfillment
Perfect Order
Fulfillment
Goal – 95%
Cycle Time
Inventory
Metrics
Conflict
Supplier
on time delivery
Schedule
Achievement
Perfect Order
Fulfillment
Supplier
on time delivery
Actual – 85%
Schedule
Achievement
Actual – 95%
Perfect Order
Fulfillment
Actual – 90%
Perfect Order
Fulfillment
Actual - 85%
On Time
On Time
Delivery
Performance
Delivery
Performance
Actual – 99%
In Full
In Full
Docs
Docs
Under-performance
Process
Systems
European RM Supplier S2 M2 D2
Damage
Damage
Supplier
on time delivery
Perfect Order
Fulfillment S2
Under-performance
Process
Systems
Key Other RM Suppliers S1 M1 D1 M1 D1 S1 D1 S1 S1
Alpha Regional
Warehouses
Consumer
RM Suppliers
Consumer
RM Suppliers
ALPHA
Consumer

21. Implementation Issues
SCOR Implementations
Vary in scope and objective
Green Field
Distribution analysis
Planning Improvements
Change Management / COTS-Consultant Selection
How to conduct an ROI evaluation
Senior Management support vs. Middle Manager resistance
Project timelines
Benchmarking
Implementation
Tools

22. ATT Wireless – Fixed Wireless Operations

23. Intel As-Is Modeled in Easy SCOR
Suppliers Supplier
Suppliers
Assemble/ Package
Distribution Centers
Geo Ports of Entry
Americas--->
Europe--->
Asia--->

24. Gold’n Plump Supply Chain Planning

25. 90% of that Completed on time
F404 Engine HP Rotor Assy
NAS
F/A 18
DSC
NADEP
NAVICP CV
25%
On-Time
Fairchild Fasteners
60% of
Requirement Accepted,
90% of that Completed on time
Serviceable Modules 188% of Requirement, Svc Engines 112% of Requirement
77%SMA
Self Locking Nut D2 S1 D1 S1 M2 D2 S1 D1 S1
Serviceable
Rotor S2
Assy
(carcass)
164 Days
32 Days
Unserviced Engine Module M2
Svc D1
98 days
Engine S2
(carcass)
Unserviceable
Rotor Assy
DR2
SR2

26. Carter Holt Harvey – Focus on Best Practice / Change Management
Best practice achieved
Practice adopted
Practice not yet adopted
COTS / Consultant Evaluations

27. USMC SRAC – IT Gaps and Redundancies

28. SCOR Projects – A Wide Range of Adoption
Consumer Foods
Project Time (Start to Finish) – 3 months
Investment - $50,000 US
1st Year Return - $4,300,000 US
Electronics
Project Time (Start to Finish) – 6 months
Investment - $3-5 Million US
Projected Return on Investment - $ 230 Million US
Software and Planning
SAP bases APO key performance indicators (KPIs) on SCOR Model
Aerospace and Defense
SCOR Benchmarking and use of SCOR metrics to specify performance criteria and provide basis for contracts / purchase orders