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Understanding The Scor Model: Improving Your Supply Chain Operations

SCOR Model Explained: SCOR DS Processes, Metrics, Levels & Examples

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SCOR Model Explained: SCOR DS Processes, Metrics, Levels & Examples

Dipesh Devadas by Dipesh Devadas
Reading Time: 4 mins read
Home Operations & Warehousing

The Supply Chain Operations Reference (SCOR) model is a process and performance framework used to describe, measure and improve supply-chain operations. The current version is the SCOR Digital Standard (SCOR DS), maintained by ASCM.

SCOR is most useful when a company needs a common language for answering three questions: Which supply-chain process is underperforming? How should performance be measured? Which practices and capabilities should be improved?

The Seven SCOR DS Processes

Current SCOR DS uses seven top-level processes:

ProcessWhat it coversExample
OrchestrateStrategy, network design, business rules, data, risk, compliance, contracts and performance managementRedesigning a regional distribution network
PlanBalancing demand, supply, capacity, inventory and resourcesBuilding a monthly supply plan
OrderCustomer-order activities and order commitmentReceiving and confirming a customer order
SourceProcurement, ordering, scheduling, receipt and transfer of purchased products and servicesBuying and receiving raw materials
TransformCreating, assembling, disassembling, repairing or otherwise converting productsManufacturing finished goods
FulfillPicking, packing, shipping, delivery, installation and invoicing activities required to satisfy ordersWarehouse dispatch and customer delivery
ReturnReverse flow of products and related activitiesProcessing a customer return

Professionals familiar with older SCOR versions may remember Make, Deliver and Enable. In current SCOR DS, Transform and Fulfill replace Make and Deliver, while Orchestrate provides the broader integration and enablement layer.

SCOR Performance Attributes

SCOR groups performance measures into eight attributes:

  • Reliability – doing what was promised correctly.
  • Responsiveness – how quickly the supply chain responds.
  • Agility – ability to respond to change and disruption.
  • Costs – cost of operating the supply chain.
  • Profit – financial performance related to supply-chain activity.
  • Assets – use of working capital and fixed assets.
  • Environmental – materials, energy, water, emissions and waste.
  • Social – workforce and social performance measures.

Level-1 SCOR metrics include measures such as Perfect Order Fulfillment, Order Fulfillment Cycle Time, Total Supply Chain Management Costs, Cash-to-Cash Cycle Time and other strategic metrics linked to the attributes above.

SCOR Process Levels

SCOR becomes more useful when the process hierarchy is understood:

  • Level 0: the overall Orchestrate layer.
  • Level 1: major supply-chain processes.
  • Level 2: process categories and capabilities.
  • Level 3: detailed process elements.
  • Level 4 and below: company-specific procedures, systems and work instructions.

This hierarchy lets management start with a strategic performance gap and progressively drill down to the operational process that is causing it.

Example: Poor Customer Delivery Performance

Assume a company has declining on-time delivery and rising expediting cost.

  1. Start with the Reliability and Responsiveness performance attributes.
  2. Review Fulfill metrics such as order fulfillment cycle time and perfect-order performance.
  3. Break the problem into process categories: order release, picking, packing, dispatch, transportation and delivery.
  4. Check whether the root cause actually sits upstream in Plan, Source or Transform.
  5. Map the current process, quantify delays and defects, then implement the selected improvement.
  6. Track the same SCOR metrics after the change to confirm whether performance improved.

SCOR vs ERP, WMS and Process Mapping

SCOR is not software. An ERP records enterprise transactions, a WMS executes warehouse activity, and process mapping documents the actual workflow. SCOR provides the higher-level process and performance framework that helps connect these systems and processes to a common improvement model.

How to Use SCOR Practically

  • Define the supply-chain scope and business objective.
  • Map activities into SCOR processes.
  • Select the relevant performance attributes and metrics.
  • Identify the largest performance gaps.
  • Decompose metrics to find the operational drivers.
  • Compare current practices with stronger practices and capabilities.
  • Implement improvement actions and measure results.

Common Interview Question

Question: What is SCOR and how would you use it?

Strong answer: SCOR is a supply-chain process and performance framework. I would use it to map the supply chain into standard processes, connect performance gaps to SCOR metrics, diagnose the process causing the gap, and then measure whether the improvement actually changed reliability, responsiveness, cost, assets or another target attribute.

Related SCMANA Guides

  • SCOR Process Types: A Deeper Look at the Seven Processes
  • Supply Chain Process Mapping
  • ERP vs WMS

References

  • ASCM – SCOR Digital Standard
  • ASCM – SCOR Digital Standard Version 14.0

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