SCOR Review for Executives

SCOR Review for Executives

During the event we organized in partnership with MGCM and in the continuity of the strategic alliance with APICS, several speakers presented the advantages of one of the most promising models for strategic decision-making in supply chain management known as the SCOR model (Supply Chain Operations Reference).

In a context of constant evolution and change, the lack of visibility and complexity of our constantly growing companies has led organizations to redesign their Supply Chain. One of the keys to achieving this transformation is speed and adaptability.

The SCOR model is based on three main principles: processes, performance measurement and best practices with the capitalisation of the skills of the people in an organisation (4P: Process, Performance, Practices, People). The interaction of these three principles facilitates the implementation of transformation projects, the alignment of the company’s strategy and the improvement of operations.

It is an open standard that can be adapted to the context of each company and facilitates strategic decision-making in supply chain management. The SCOR model, based on the customer, provides Supply Chain actors with a common and standardized language to accelerate the internal and external integration of companies.

The model is subdivided into 5 distinct processes that analyze the supply chain from start to finish: PLAN, SOURCE, MAKE, DELIVER and RETURN. Each of these processes is examined in three levels of detail: the strategic level, the tactical level and the operational level.

Experience feedback

During this meeting, we heard feedback on the implementation of the SCOR model through two concrete cases.

Mr David Morrow  – Director Business Intelligence and Program Manager – US, Air Force explained how the US Army Supply Chain has integrated the SCOR model into their sourcing process for spare parts for restarting army aircraft. The objective of reducing supplier lead times, excess inventory, and improving net income was achieved very quickly.

Eric REINHARD – Supply Chain Manager – Paul Hartmann Laboratories, presented us with all the benefits of using the SCOR model at Hartmann and how they have improved the service rate from 96% to 99% in 2 years. At the same time, the company managed to reduce its inventories by 10% with productivity gains of more than 15% and a 3% improvement in forecasts.

The competitiveness of companies is closely linked to their performance and the choice of measures to be taken into account is difficult to implement. The SCOR model provides a common language and standardized performance evaluation measures that allow companies to benchmark their Supply Chain.

According to a study conducted by APICS, the reasons that motivate companies to follow the SCOR model are:

  1. Achieve operational excellence;
  2. Improve supply chain performance;
  3. Define and build an efficient supply chain organization;
  4. Improve sales and operational planning;
  5. Create a Supply Chain strategy;
  6. Globalize business process management.

Find the presentation of the morning by following this link