1. SCOR ®: A Journey of Supply Chain Process Excellence
Using SCOR to Drive Process Improvements
Derinda Ehrlich
VP, Corporate and Channel Services, APICS

2. Introductions

3. Topics APICS and Supply Chain Council merger What is SCOR?
Using SCOR to Drive Process Improvements
Implementing SCOR
Next steps for YOUR organization

4. APICS merger with Supply Chain Council

5. Leading the Industry
APICS is globally the leading association advancing supply chain and operations management.
Our research, education and certification programs elevate individual and corporate supply chain performance, innovation and resilience.
APICS Products and Services
Professional Membership
Research and Publications
Education
Certification
Events
APICS and the Supply Chain Council – officially merged August 2014

6. APICS Supply Chain Council (APICS SCC)
We are a global, non-profit organisation that developed and actively manages the Supply Chain Operations Reference (SCOR) model.
The SCOR® model is globally recognised as the standard framework that links supply chain process, performance, practices, people (organizations) and technology into a unified structure.
Since 1996, over 5,000 companies worldwide have used SCOR®.
APICS SCC Services
Research Projects, Corporate Advisory Board, Executive Summit
SCORmark™ Benchmark
Training is now available through APICS
Publications, Resource Library, and Case Studies
Other Value Chain Frameworks including M4SC, DCOR®, CCOR®, and PLCOR®

7. APICS and APICS Supply Chain Council
Training, certification and networking
Research, Benchmarking and Process Frameworks
APICS
APICS SCC
APICS Value Proposition
Individuals
Corporations, and 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.

8. What is SCOR®?

9. A Process Framework
Process frameworks deliver the well-known concepts of business process reengineering, benchmarking, and best practices into a cross-functional framework
Process Standards: Plan, Source, Make, Deliver, Return, Enable
Performance Standards: Perfect Order Fulfillment, Cash-to-Cash Cycle Time, Cost of Goods Sold, Order Fulfillment Cycle Time, etcetera
Practices: EDI, Cross-Training, Sales & Operations Planning, …
People/Skills: Process, practices, and metrics cross-referenced with personnel skills that include experience, aptitude and training needs

10. History of SCOR In 1996, 69 companies collaborated
Described the Supply Chain in terms of a Process Framework
Currently on SCOR version 11
Since 1996 more than 5000 companies used SCOR

11. SCOR® Processes SCOR MODEL Supplier Customer Source
Suppliers’ Supplier
Source
Internal or External
Your Organization
Return
Deliver
Make
Plan
Customers’ Customer
Enable
SCOR MODEL

12. SCOR® Process Decomposition
Level
Description
Examples
Comments 1
Process Types (Scope)
Plan, Source, Make, Deliver, Return and Enable
Level-1 defines scope and content of a supply chain. At level-1 the basis-of-competition performance targets for a supply chain are set 2
Process Categories (Configuration)
Make-to-Stock, Make-to-Order, Engineer-to-Order Defective Products, MRO Products, Excess Products
Level-2 defines the operations strategy. At level-2 the process capabilities for a supply chain are set. (Make-to-Stock, Make-to-Order) 3
Process Elements (Steps)
Schedule Deliveries
Receive Product
Verify Product
Transfer Product
Authorize Payment
Level-3 defines the configuration of individual processes. At level-3 the ability to execute is set. At level-3 the focus is on the right:
Processes
Inputs and Outputs
Practices
Technology capabilities
Skills of staff

13. 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

14. SCOR Quick Reference Guide
SCOR QRG is a handy reference for SCOR Processes and Performance (metrics) across the main SCOR processes

15. Other APICS SCC Frameworks
Customer processes
Supplier processes
Product & Portfolio Management PLCOR™
Supply Chain
SCOR®
Product & Process Design DCOR™
Sales & Support
CCOR™

16. Using SCOR® to Drive Process Improvements

17. Nigel Clements, from the Deming Forum estimates that up to 70% of process improvement projects fail.
2012 WSJ by S. Chakravorty estimate 60% of Six Sigma projects fail.

18. Typical Lean and Six Sigma Challenges
Top Five Challenges with Lean/Six Sigma projects
Executive alignment / change management
Project selection (typically through brainstorming)
Projects aligned to functions (silos and departments)
Access to meaningful metrics and performance data
Quantifying the benefit/outcome
Source: © 2003 Dan Swartwood

19. (Asset Management Efficiency)
End to End View
Strategic Metric
(Attribute)
Strategy
Perfect Order
(Reliability)
Consistently getting the orders right, and product meets quality requirements
Order Fulfilment Cycle-Time (Responsiveness)
The consistent speed of providing products/services to customers
Flexibility, Adaptability & Risk
(Agility)
The ability to respond to upside or downside changes and overall value at risk
Cost to Serve
(Costs)
The cost associated with managing and operating the supply chain
Asset Management
(Asset Management Efficiency)
The effectiveness in managing the supply chain’s assets in support of fulfillment
External
Internal

20. Hierarchy of SCOR Metrics
Level 1
Strategic Metric
Level 1
Level 2
Level 3
Level 2
Process Metrics
Level 3
Diagnostic Metrics

21. Hierarchy of SCOR Metrics
Level 1
Ability to execute the strategy
Level 1
Level 2
Level 3
Level 2
Explains why the strategy not achieved
Level 3
Diagnose the gap

22. Hierarchy of SCOR Metrics
Level 1
Strategic Metric
Customer Perfect Order Fulfilment
Orders Delivered in Full
Delivery Item Accuracy
Delivery Quantity Accuracy
Customer Perfect Order
Level 1
Level 2
Level 3
Level 2
Process Metrics
Orders Delivered In Full
Level 3
Diagnostic Metrics
- Delivery Item Accuracy
- Delivery Quantity Accuracy

23. Competitive Requirements

24. Competitive Requirements
Identify Customer Groups or Market Segments
Based on the expectations for that supply chain, define performance requirements for each segment
One assigned superior (S)
Two assigned advantage (A)
Two assigned parity (P)
Each unique combination of ratings defines the Supply Chain Strategy for the channel
Think of the rating as a desired state, NOT where you want to improve the most

25. Example S A P Competitive Requirements Retail Channel
Distributor Channel
Delivery Reliability S A
Responsiveness P
Agility
Total Supply Chain Management Cost
Asset Management Efficiency

26. What are YOUR targets? Delivery Reliability Responsiveness Agility
Determine your Competitive Requirements
Identify your largest channel
Determine where you desire to perform at best in class
Determine two attributes where you desire to be better than average
The remaining two get parity rankings
Delivery Reliability
Responsiveness
Agility
Total Supply Chain Management Cost
Asset Management

27. Discussion Q: Where did you place your S?
Q: Where is your largest performance gap?
Q: What insight did you learn?

28. How do you know the size of the gap?

33. Lean and Six Sigma driven with SCOR
SCOR with Lean/Six Sigma projects
Executive alignment and sponsorship of improvement projects
Roadmap, data and criteria
Defined people (roles/responsibilities) and practices
Project selection
Portfolio of improvement projects aligned to Supply Chain data and strategic direction
Projects often aligned to functions and silos versus end-to-end
Projects aligned to SCOR processes (end to end) Plan, Source, Make, Deliver and Return
Opportunities for improvement often not data driven
Standardised operational definition for performance measures
Quantified performance gaps through SCORMark™ data
Quantifying the benefit/outcome
Comparative data to measurable outcomes for similar Supply Chains

34. Implementing SCOR

35. SCOR® Implementation Roadmap
Step
FOCUS
Major Deliverables
Touch Points
APICS Enabler 1
BUILD ORGANISATION SUPPORT
Sponsor and Key Stakeholder Support
Education
ORIENTATION
Executive Brief
Orientation Webinar
Public SCOR-P Training
In-house SCOR-P Training 2
DEFINE THE PROJECT
Business Context Summary
Supply Chain Definition
Project Scope and Charter 3
ANALYSE PERFORMANCE
Scorecard
Metric Defect Analysis
Process Analysis
BENCHMARK
SCORmark® Benchmarking Orientation 4
DEVELOP THE PROJECT PORTFOLIO
Project Portfolio
Implementation Priority
PORTFOLIO DEVELOPMENT
Roadmap Progress Webinar 5
IMPLEMENT A PROJECT
Development, Pilot, and Implementation of a Portfolio Project
Results
SATISFACTION SURVEY
APICS Instructor List
APICS SCC Sponsor List

36. Top Motivations to Use SCOR®
Building a Technology Investment Roadmap
In Search of Return on Investment (ROI) for Capacity
Creating a Supply Chain Strategy
Implementing Supply Chain Performance Improvements
Improving Sales and Operations Planning
Developing Organizational Talent, Support and Competence
Maximising Use of Existing Technology
Achieving Operational Excellence
Due Diligence as part of a Merger or Acquisition
Globalising and Managing Business Processes
Integrating with the greater Value Chain
Integrating Lean, Six Sigma, and SCOR to Build a Better Project Portfolio
Defining and Building an Effective and Efficient Supply Chain Organization

37. 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

38. Shareholder Value

39. What are your organisation's main motivations in considering the use of SCOR?

40. Potential SCOR Implementation Role
What potential role would you play in a SCOR Project?
A. Sponsoring Executive
B. Key Stakeholder
C. Evangelist –Subject Matter Expert

41. Discussion
Q: Are you prepared?
Q: What is your approach?

42. Continue the Conversation

43. Learn More About SCOR® Training

44. SCOR® Training Options
APICS SCC offers training that provides in-depth understanding of the Supply Chain Reference (SCOR®) model, widely recognised as the global standard for supply chain management.
SCOR® Group Training: Cost-effective, customized group learning at your location
SCOR® Training: Thorough, effective, skills development in public classroom setting 2015 schedule -

45. SCOR Mobile App Official launch soon, but you can check it out now!
Enhanced digital version of the SCOR Quick Reference Guide
Offers an outline of the processes under the four main areas of the model – Process, Performance, Practices and People

46. Continue the Conversation
Peter Bolstorff
Executive Director
APICS Supply Chain Council
Carolyn Lawrence – For Affiliate Subscription and On Boarding
Director Corporate Development
Derinda Ehrlich VP Corporate and Channel Services APICS Dominic Longo, CSCP – For Training Director Corporate Services

47. Q&A

48. Thank You!