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APICS Webinar Series SCOR 101
Peter Bolstorff, CSCP, SCOR-P Executive Director APICS Supply Chain Council September 23, 2015
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Introduction Peter Bolstorff, CSCP, SCOR-P Executive Director | APICS Supply Chain Council Delegate from 3M and then Imation for SCOR 1.0 in 1996 Expertise in Manufacturing and Planning including Center of Excellence Leadership for Sales and Operations Planning Authored, Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model, 3rd Edition First Supply Chain Council non-staff Certified Instructor and now SCOR-P and CSCP From 2002 to 2014, Helped 30+ Companies Analyze $13.5B USD Deriving $200M USD in Operating Income Improvements Have volunteered with the SCC since the beginning Industry experience includes Chemical, Retail, Food and Grocery, Electronics, Durable Goods, Consumer Packaged Goods, and Aerospace and Defense
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Seven Good Questions Who is the APICS Supply Chain Council?
What is SCOR? Why do companies use SCOR? How do companies use SCOR? What are the benefits companies realize as a result of using SCOR? Who is using SCOR? How can I or my company get started?
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Who is the APICS Supply Chain Council?
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APICS SCC The legacy SCC integrated with the former APICS Foundation to form the new APICS SCC. The new organization continues the tradition of funding scholarships and student programs; still operates as a global, non-profit entity; and actively manages the Supply Chain Operations Reference (SCOR) model. Programs and Services Plossl Dissertation, Scholars Program, Student Case Competition Research Projects, Corporate Advisory Board, Executive Summit SCORmark™ Benchmark Publications, Resource Library, and Case Studies Other Value Chain Frameworks including M4SC, DCOR®, CCOR®, and PLCOR® Training is now available through APICS
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New Value Proposition APICS Value Proposition APICS APICS SCC
Training, certification and networking Research, benchmarking and frameworks APICS APICS SCC APICS Value Proposition Individuals Corporate, Public Sector and Academic Institutions APICS delivers a total individual and corporate value proposition. We help individuals achieve career development goals. We help corporations achieve strategic supply chain goals.
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What is SCOR?
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SCOR Framework SCOR MODEL Supplier Customer Source
Suppliers’ Supplier Source Internal or External Your Organization Return Deliver Make Plan Customers’ Customer Enable SCOR MODEL
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SCOR Value Value of a Reference Model Business process re- engineering
Best practice maturity assessment Benchmarks Organizational and Individual Supply Talent Assessment The SCOR app is here! Download on App Store, iTunes or Google Play today. Search APICS SCOR
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SCOR Metrics Attribute SCOR 11.0 Metrics Reliability
RL.1.1 Perfect Order Fulfillment Responsiveness RS.1.1 Order Fulfillment Cycle Time Agility AG.1.1 Upside Supply Chain Flexibility AG.1.2 Supply Chain Upside Adaptability AG.1.3 Downside Supply Chain Adaptability AG.1.4 Overall Value At Risk (VAR) Cost CO.1.1 Total Cost to Serve Asset Management Efficiency AM.1.1 Cash-to-Cash Cycle Time AM.1.2 Return on Supply Chain Fixed Assets
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SCOR Hierarchy Description Schematic Comments Level Major Processes
1 2 3 4 Major Processes Process Categories Elements Improvement Practices Defines the operations strategy. Process capabilities are set (M)ake (S)ource (P)lan (E)nable (R)eturn (D)eliver Retail ETO MTO MTS sD1 sD2 sD3 sD4 Defines the configuration of individual processes. The ability to execute is set. Focus is on processes, inputs/outputs, skills, performance, best practices, and capabilities Use of kaizen, lean, TQM, six sigma, benchmarking Description Schematic Comments Defines the scope, content, and performance targets of the supply chain sD1.1 Process inquiry and quote sD1.2 Receive, enter, Validate order sD1.3 Reserve inv. and delivery date sD1.4 Consolidate orders sD1.5 Build loads sD1.6 Route shipments Level
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Other APICS SCC Frameworks
Customer processes Supplier processes Product & Portfolio Management PLCOR™ Supply Chain SCOR® Product & Process Design DCOR™ Sales & Support CCOR™
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Why do companies use SCOR?
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Live Poll Pollev.com/apics
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Top Motivations to Use SCOR
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Live Poll Question 1
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Live Poll Question 2
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Cumulative Poll Results YTD
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How do Companies Use SCOR
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SCOR Improvement Program Racetrack
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SCOR Improvement Program Organization
Program stakeholders Executive team Channel partners Customers Executive sponsor Operations management Technology team Program champion Program team Other stakeholders Financial team Team leader Other teams Functional managers Improvement team Supply chain team Detail Project Subprojects
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Improvement Program Charter Deliverable
Section Subsection Discussion Introduction Purpose, table of contents, control/maintenance Improvement program charter overview Program Definition Scope Which supply chains selected Business objectives Performance metrics Improvement program objectives Supply chain performance targets Program organization Definition of program team and shareholders Program Contents Methodology Five-phased SCOR racetrack Schedule Timeline, detailed activities, meetings Roles Program activity responsibles Deliverables and milestones Detailed deliverables and milestones Risks and dependencies Critical risks and avoidance strategies Benefits Measures of success, analysis
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Measuring Supply Chain Excellence
Attributes Metrics Parity Advantage Superior Target Level Performance Your Organization Gap to Target Customer Facing Metrics Reliability Perfect Order Fulfillment (%) 77.5% 85.6% 93.7% 69.2% 16.4% Responsiveness Order Fulfillment Cycle Time (days) 9.1 6.5 3.9 7.1 – Agility Supply Chain Flexibility (days) 45.0 33.0 21.0 15.0 Supply Chain Adaptability (%) 35.5% 51.3% 72.0% 10.0% 41.3% Internal Facing Metrics Cost Total Supply Chain Management Cost % Revenue 8.7% 5.6% 2.4% 8.1% -5.7% Asset Management Efficiency Cash to Cash Cycle Time (days) 55.4 30.5 5.5 160.5 -105.1
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Organization and Individual Talent Assessment
Gartner Maturity Stage Knowledge and Skills Process-Practice-Performance-People Orchestration SCOR-P and M4SC Leadership Series Supplier’s Supplier to Customer’s Customer Supply Chain Community Collaboration CSCP – Certified Supply Chain Professional Supplier to Customer Single Instance Anticipating CPIM – Certified in Production and Inventory Management Internal Process Reacting Principles of Operations Management Single Process
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What are the benefits realized using SCOR?
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SCOR Implementation Benefits
Average Operating Income improvement of 3% to sales (high 4.5% - low 1.5%) Typical inventory turn improvements of 20% Delivery reliability improvement of 25% 20% improvement in flexibility 30% faster system implementations with 30% more functionality Continuous improvement portfolios refreshed at a value of 0.5% Mitigation of costs associated with risk management Source: APICS Supply Chain Council 2002 to 2014
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APICS SCC Global Fund – Illustration Only
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Who is using SCOR?
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Organizational Snapshot
253 91 60 CORPORATE AFFILIATES & SPONSORs ACADEMIC AFFILIATES PUBLIC SECTOR AFFILIATES 404 TOP 10 COUNTRIES 131 RK COUNTRY # 1 United States 146 2 Germany 32 3 China 31 4 Switzerland 16 5 South Africa 15 6 Netherlands 14 7 United Kingdom 13 8 Canada 10 9 France Sweden 253 64 17 14 12
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How do we get engaged with the APICS SCC?
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APICS SCC Corporate Engagement Model
Affiliates Sponsors Global Employee Access to Content Executive Summit Research Projects Benchmark Digital Library Training Frameworks Global License and Access to Content Leaders of Leaders Focus Forums Executive Summit Digital Library Training Frameworks Benchmark
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APICS SCC Individual Engagement Model
Evangelist Executive Sponsor Download the SCOR app Attend a public training class Earn CSCP Certification Earn the SCOR-P endorsement Become an APICS member and participate on a research project Attend an executive briefing Contact APICS SCC to discuss programs Budget for affiliation Host in-house SCOR class Benchmark your company Participate on APICS corporate advisory board Attend APICS SCC Executive Summit
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Continue the Conversation
Peter Bolstorff, CSCP, SCOR-P Executive Director APICS Supply Chain Council Carolyn Lawrence – For Affiliate Subscription and On Boarding Director Corporate Development Melinda Spring, SCOR-P – For Research Projects Director Programs Dominic Longo, CSCP – For Training Director Corporate Services APICS
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Visit APICS SCC Online www.apicsscc.org
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Thank You!
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