8/8/2019 Aaltonen_LSS Ja Muut SCOR
1/12
June 2003June 2003 11
Overview PresentationOverview Presentation
Supply ChainSupply Chain
Operations Reference-modelOperations Reference-model
(SCOR)(SCOR)
8/8/2019 Aaltonen_LSS Ja Muut SCOR
2/12
SCOR OverviewJuly 2004 2
The SCC is an independent, not-for-profit, global corporation withThe SCC is an independent, not-for-profit, global corporation with
membership open to all companies and organizations interested inmembership open to all companies and organizations interested inapplying and advancing state-of-the-art supply chain managementapplying and advancing state-of-the-art supply chain management
systems and practices.systems and practices.
Over 800 Company MembersOver 800 Company Members
Cross-industry representationCross-industry representation
Chapters in Australia/New Zealand, Brazil, Europe, Japan,Chapters in Australia/New Zealand, Brazil, Europe, Japan,
North America, Southern Africa, and South East Asia withNorth America, Southern Africa, and South East Asia with
petitions for additional chapters pending.petitions for additional chapters pending.
The Supply-Chain Council (SCC) has developed and endorsed theThe Supply-Chain Council (SCC) has developed and endorsed the
Supply Chain Operations Reference-model (SCOR) as the cross-Supply Chain Operations Reference-model (SCOR) as the cross-
industry standard for supply chain managementindustry standard for supply chain management
8/8/2019 Aaltonen_LSS Ja Muut SCOR
3/12
SCOR OverviewJuly 2004 3
Quantify theoperationalperformance ofsimilar companiesand establishinternal targetsbased on best-in-
class results
Quantify theoperationalperformance ofsimilar companiesand establishinternal targetsbased on best-in-
class results
Benchmarking
Characterize themanagementpractices andsoftware solutionsthat result inbest-in-classperformance
Characterize themanagementpractices andsoftware solutionsthat result inbest-in-classperformance
Best PracticesAnalysis
Process ReferenceModel
Capture the as-isstate of a processand derive thedesired to-befuture state
Capture the as-isstate of a processand derive thedesired to-befuture state
Business ProcessReengineering
Capture the as-is stateof a process and derivethe desired to-be futurestate
Capture the as-is state
of a process and derivethe desired to-be futurestate
Quantify the operationalperformance of similarcompanies and establishinternal targets based onbest-in-class results
Characterize themanagementpractices andsoftware solutionsthat result in best-in-class performance
What is a process reference model?What is a process reference model?
Process reference models integrate the well-knownProcess reference models integrate the well-known
concepts of business process reengineering,concepts of business process reengineering,benchmarking, and process measurement into a cross-benchmarking, and process measurement into a cross-
functional frameworkfunctional framework
8/8/2019 Aaltonen_LSS Ja Muut SCOR
4/12
SCOR OverviewJuly 2004 4
Supplier
Plan
Customer CustomersCustomer
SuppliersSupplier
MakeDeliverSource Make DeliverMakeSourceDeliver SourceDeliver
Internal or External Internal or External
Your Company
Source
SCOR is structured around five distinctSCOR is structured around five distinct
management processesmanagement processes
SCOR ModelSCOR Model
Return Return ReturnReturn Return Return
Return Return
Building Block Approach
Processes Metrics
Best Practice Technology
8/8/2019 Aaltonen_LSS Ja Muut SCOR
5/12
SCOR OverviewJuly 2004 5
Cus
tom
ers
Cus
tom
ers
Supp
liers
Supp
liers
P1 Plan Supply ChainP1 Plan Supply Chain
PlanPlan
P2 Plan SourceP2 Plan Source P3 Plan MakeP3 Plan Make P4 Plan DeliverP4 Plan Deliver
SourceSource MakeMake DeliverDeliver
S1 Source Stocked ProductsS1 Source Stocked Products M1 Make-to-StockM1 Make-to-Stock
M2 Make-to-OrderM2 Make-to-Order
M3 Engineer-to-OrderM3 Engineer-to-Order
D1 Deliver Stocked ProductsD1 Deliver Stocked Products
D2 Deliver MTO ProductsD2 Deliver MTO Products
D3 Deliver ETO ProductsD3 Deliver ETO Products
S2 Source MTO ProductsS2 Source MTO Products
S3 Source ETO ProductsS3 Source ETO Products
Supply-Chain Operations Reference-modelSupply-Chain Operations Reference-model
(SCOR) 6.1 - Processes(SCOR) 6.1 - Processes
ReturnReturn
SourceSource
P5 Plan ReturnsP5 Plan Returns
ReturnReturn
DeliverDeliver
EnableEnable
D4 Deliver Retail ProductsD4 Deliver Retail Products
8/8/2019 Aaltonen_LSS Ja Muut SCOR
6/12
SCOR OverviewJuly 2004 6
SCOR BoundariesSCOR Boundaries
SCOR Spans:SCOR Spans:
All supplier / customer interactionsAll supplier / customer interactions Order entry through paid invoiceOrder entry through paid invoice
All physical material transactionsAll physical material transactions From your suppliers supplier to your customersFrom your suppliers supplier to your customers
customer, including equipment, supplies, spare parts,customer, including equipment, supplies, spare parts,
bulk product, software, etc.bulk product, software, etc.
All market interactionsAll market interactions
From the understanding of aggregate demand to theFrom the understanding of aggregate demand to thefulfillment of each orderfulfillment of each order
ReturnsReturns
8/8/2019 Aaltonen_LSS Ja Muut SCOR
7/12
SCOR OverviewJuly 2004 7
Material FlowMaterial Flow
SCOR Level 1
OperationsOperationsStrategyStrategy
Analyze Basis
ofCompetition
SCOR Level 2
Configuresupply chain
AlignPerformance
Levels,Practices, and
Systems
Implementsupply chain
Processes andSystems
Implementsupply chain
Processes andSystems
SCOR Project RoadmapSCOR Project Roadmap
Competitive Performance Requirements
Performance MetricsSupply Chain ScorecardScorecard Gap AnalysisProject Plan
AS IS Geographic MapAS IS Thread DiagramDesign Specifications
TO BE Thread DiagramTO BE Geographic Map
InformationInformationand Work Flowand Work Flow
AS IS Level 2, 3, and 4 MapsDisconnectsDesign SpecificationsTO BE Level 2, 3, and 4 Maps
Develop,Develop,Test, and RollTest, and Roll
OutOut
OrganizationTechnologyProcessPeople
SCOR Level 3
8/8/2019 Aaltonen_LSS Ja Muut SCOR
8/12
SCOR OverviewJuly 2004 8
Mapping material flowMapping material flow
Latin AmericanLatin American
SuppliersSuppliers
(D1)
WarehouseWarehouse
Other SuppliersOther Suppliers(D1)
ManufacturingManufacturing
European SupplierEuropean Supplier
(S1)(SR1,SR3)
Customer
Customer
Customer
Customer
(S1, D1)
(SR1,DR1,DR3)
(D2)(DR1)
WarehouseWarehouse
WarehouseWarehouse
WarehouseWarehouse
(S1, D1)
(SR1, DR3)
(S1, D1)
(SR1,DR1,DR3)
(S1, D1)
(SR1,DR1,DR3)
(S1)
(SR1,SR3)
(S1)
(SR1,SR3)
(S1)
(SR1,SR3)
(S1, S2, M1, D1)
(SR1,,DR1)
8/8/2019 Aaltonen_LSS Ja Muut SCOR
9/12
SCOR OverviewJuly 2004 9
Mapping the execution processesMapping the execution processes
S1S1
D1D1 S1S1
M2M2S2S2 D2D2
M1M1 D1D1 S1S1
S2S2
D1D1M1M1
EuropeanEuropeanRM SupplierRM Supplier
Key OtherKey OtherRMRM
SuppliersSuppliers
AlphaAlpha
RegionalRegionalWarehousesWarehouses
S1S1
DR1DR1 SR1SR1
DR1DR1 SR1SR1 DR1DR1 SR1SR1
DR3DR3 SR3SR3
RMRM
SuppliersSuppliersDistributorsDistributorsALPHAALPHA
DR3DR3 SR3SR3
S1S1
AmericasDistributors
SR1SR1
SR3SR3
8/8/2019 Aaltonen_LSS Ja Muut SCOR
10/12
SCOR OverviewJuly 2004 10
Identifying Plan ActivitiesIdentifying Plan Activities
Consumer
P2P2P2P2
PP
44
PP
44
P3P3P3P3
PP44
PP44
S1S1 D1D1 S1S1
PP
22
PP
22
P2P2P2P2
PP
33
PP
33
PP
44
PP44
M2M2S2S2 D2D2
M1M1 D1 S1S1S2S2D1D1
M1M1
EuropeanEuropeanRM SupplierRM Supplier
Key OtherKey OtherRMRM
SuppliersSuppliers
S1S1
AlphaAlpha
RegionalRegionalWarehousesWarehouses
RMRM
SuppliersSuppliersDistributorsDistributorsALPHAALPHA
P1P1P1P1
P1P1P1P1
P1P1P1P1
8/8/2019 Aaltonen_LSS Ja Muut SCOR
11/12
SCOR OverviewJuly 2004 11
Supply Chain Scorecard & Gap AnalysisSupply Chain Scorecard & Gap Analysis
50%
$30M Revenue
$30M Indirect Cost
35 days
97 days
0%
63%
Supply Chain SCORcard Performance Versus Competitive Population
Overview Metrics SCOR Level 1 Metrics Actual Parity Advantage Superior Value from Improvements
Delivery Performance toCommit Date 85% 90% 95%
Fill Rates 94% 96% 98%
EXTERNAL
SupplySupply
ChainChainReliabilityReliability
Perfect Order Fulfillment 80% 85% 90%
Order Fulfillment Lead times7 days 5 days 3 days
Flexibility
Responsiveness
Production Flexibility 30 days 25 days 20 days
Total SCM Management
Cost 19% 13% 8%3%
INTERNAL Cost Warranty Cost NA NA NA NA NA
Value Added Employee
ProductivityNA $156K $306K $460K NA
Inventory Days of Supply 119 days 55 days 38 days 22 days NA
AssetsCash-to-Cash Cycle Time
196 days 80 days 46 days 28 days
Net Asset Turns (Working
Capital)2.2 turns 8 turns 12 turns 19 turns NA
Supply ChainResponse Time 82 days 55 days 13 days
45 days
$7 M Capital Charge
Key enabler to cost andasset improvements
$30M Revenue
8/8/2019 Aaltonen_LSS Ja Muut SCOR
12/12
www.supply-chain.orgwww.supply-chain.org
[email protected]@supply-chain.org