SCOR is the acronym for the Supply Chain Operations Reference model. It is a process used to evaluate an organization’s supply chain. The SCOR model was developed by the supply chain council with the assistance of 70 of the world’s leading manufacturing companies. SCOR is based on a static model that defines the supply chain structure along with supplychain metrics and scorecards used to evaluate performance and identify areas for improvement.
The SCOR model describes the business activities associated with satisfying a customer’s demand, which include Plan, Source, Make, Deliver, Return, and Enable. Use of the model includes analyzing the current state of a company’s processes and goals, quantifying operational performance, and comparing company performance to benchmark data. SCOR has developed a set of metrics and best practices information that companies can use to evaluate their supply chain performance.
The model is based on 4 major “pillars”:
- Process modelling and re-engineering.
- Performance measurements.
- Best practices.
There are four stages to the evolution of such a supply chain network:
- Stage 1: Supply Management. The most basic stage, built around an internal MRP system that is lead-time driven.
- Stage 2: Supply Chain Management.
- Stage 3: Supply Chain Integration.
- Stage 4: Demand–Supply Network Collaboration.
Connected supply chain planning for synchronized outcomes using Anaplan:
In today’s constantly changing market, a supply plan must be resilient to meet demand consistently and efficiently. Supply chain planning with Anaplan provides real-time, end-to-end visibility and “what-if” scenario planning to ensure an accurate supply forecast across your entire network and to empower teams, including suppliers and other network partners, to collaborate across your business.
What is Anaplan:
With Anaplan’s Optimizer hyperscale computing, Supply chain leaders can convert complex decisions into actionable choices by harnessing real-time signals with enterprise-wide line of sight.
as a purpose-built platform connecting people, data, and plans, Anaplan delivers a unified real-time, cloud-based environment to optimize planning and democratize decision-making across all lines of business and business activities, from strategic to operational levels.
product is a cloud computing, multi-tenant data architecture SaaS platform with a patented, in-memory calculation engine (the Hyperblock).
Anaplan applies hyperscale computing across planning in supply, demand, sales and operations and Finance. Orchestrate actionable insights into action by converting constant change to your advantage.
Anaplan: Functionality for the entire strategic planning process
The functionality and flexibility of the Anaplan platform means it can be used at every stage of the strategy formulation and implementation process. They can also quickly integrate data from other parts of the business to see the recent history of key drivers that underpin the longer-term strategic planning model. Since Anaplan is designed for self-management, users can quickly create and test new scenarios delivering just the type of agility and understanding that is frequently lacking in Supply Chain Management (SCM) today.
Model your supply chain with intelligence:
A resilient supply chain should be your competitive advantage. It should be enabled to real-time collaboration across departments, functions, suppliers, and customers.
- Create a complete, high-fidelity digital twin of your supply chain to unlock end-to-end visibility and control.
- Establish planning horizons, from daily to long-term, that match the pace of your business.
- Aggregate data into a single source of truth, allowing changes in one area to immediately roll to all others.
At Solvanni, we have made the life simple for customers building the SCOR model in Anaplan platform that you can easily consume and implement by integrating your data and standardizing your processes across Plan, Source, Make, Deliver, Return and Enable processes
- Anaplan also negates the need to resort to a stand-alone solution for Supply Chain Management, Integration and Demand-Supply Network Collaboration. Anaplan based Supply Chain and Operations Solutions helps management teams to deconstruct their strategy (i.e., identify what factors are critical to a Supply Chain Management success and track them by monitoring the appropriate key performance indicators [KPIs]).
- Critically, Anaplan based SCOR Framework Implementation in Supply Chain also monitors the assumptions that underpin strategy and progress against strategic imperatives so that the management team gets the early warnings needed to react and change course before it is too late
Anaplan delivers rapid time to value. By contrast, Anaplan’s flexible data architecture and built-in intelligence means implementations can be rapid and iterative, with changes and enhancements being made at any time. This also helps you adapt rapidly when your demand and supply changes.
Source: SCOR model and SCRO Implementation Racetrack images from ASCM/ APICS
Why an organization needs SCOR?
The SCOR process can go into many levels of process detail to help a company analyze its supply chain. It gives companies an idea of how advanced its supply chain is and when an organization is into activities pertaining to Globalization like
- Introducing innovative new products.
- Acquiring Companies.
- Enabling new business model.
- New Go-To-Market Strategy
Also, when an organization is affected by changing market conditions due to
- Global pandemic impact like COVID -19.
- Changing relationship between U.S and rest of the world (Eg.- China).
- Natural disaster across the globe
It makes it imperative for the organization to get in place quickly a new supply chain strategy
- To align to changing business strategy based on current prevailing scenarios.
- To support different business model.
- To build agility and flexibility to adopt to changing market conditions.
- To establish metrics to measure progress and be a best-in-class supply chain in the industry.
We at Solvanni help organizations to Implement SCOR model in the supply chain management by ensuring we satisfy the above said important supply chain requirements and at the same time we take a cross-enterprise integrated approach, by tightly integrating with other processes and systems.
How to implement SCOR model metrics and performance measurements:
There are three levels used to measure supply chain performance. These levels help standardize supply chain performance metrics so that companies can be evaluated against other businesses, even if they are operating differently. A smaller organization can be compared to a bigger organization, or businesses can judge supply chain performance against companies in other industries.
The three levels include:
- Level 1: Defining scope, including geographies, segments and context. At this level, the focus is on the six main process configurations: plan, source, make, deliver, return and enable.
- Level 2: Configuration of the supply chain, including geographies, segments and products. At Level 2, metrics are high level and evaluated across multiple SCOR processes. This level includes subtype categories that fall under the “parent” categories found in Level 1.
- Level 3: Process element details, identifying key business activities within the chain. At this level, you can associate any Level 2 process or subcategory with a Level 3 process.
Challenges faced by Organizations in Data collection and implementing SCOR Metrics:
Every organization is challenged with measuring the industry standard way and data collection and measuring the right way. Solvanni’s expertise in Data management, deep Supply chain expertise and Anaplan ready App solution brings the value to customers in terms of time to value, ease of implementing SCOR processes, metrics and measuring KPIs to drive internal organizational process excellence and with external partner customers, suppliers, logistics partners and transportation providers.
Solvanni’ s SCOR model in Anaplan helps companies:
- Benchmark against peers, best-in class and laggards.
- Translate business strategy to supply chain strategy: How closely is the supply chain strategy meeting business plan objectives?
- Measure supply chain performance: How are you doing, how are you trending?
- Understand relative performance compared to competitors: How are you doing compared to your supply chain strategy
- Identify and monitor processes that most likely cause the performance gaps: What improvement targets should you pursue?
The Solvanni’s SCOR model in Anaplan can be easily configured into many levels of process detail to help a customers analyse its supply chain, gives idea of how advanced their supply chain processes are. The helps customers understand how the 5 steps repeat and connected between suppliers, the company, and customers. Each step is a link in the supply chain that is critical in getting a product successfully along each level.
Solvanni’s SCOR Model in Anaplan delivers
1) Building a technology investment roadmap.
2) In search of return on investment (ROI) for capacity creating a supply chain strategy.
3) Implementing supply chain performance improvements.
4) Improving sales and operations planning.
5) Developing organizational talent, support, and competence.
6) Maximize use of existing technology.
7) Achieving operational excellence.
8) Due diligence as part of a merger or acquisition.
9) Globalizing and managing business processes.
10) Integrating with the greater value chain, lean, six sigma, and SCOR to build a better project portfolio for an effective and efficient supply chain organization.
We help Customers to start measuring the top performance attributes a company is looking forward to focus and its related Level-1, Level-2, level-3 metrices and the data that are needed to measure at all these levels. Below is a sample depth of metrics and count of data points we work with customers to integrated SCOR model in Anaplan with enterprise source systems
|Performance Attributes||Level-1 Metric(s)||Level-2 Metric Count||Level-3 Metric Count||Data Points|
|Reliability||Perfect Order Fulfillment||4||13||29|
|Responsiveness||Order fulfillment cycle time||5||32||33|
|Agility||Upside/Downside Supply Chain Adaptability Value at Risk||15||–||–|
|Cost||Supply Chain Management Costs Costs of Goods Sold||9||22||43|
|Asset||Cash-to-Cash Cycle Time & Return on Supply Chain Fixed Assets Return on Working Capital||8||12||36|
Solvanni can help Customers in Data collection (as in above table) from Source systems, Data sanity check, Cleanup and Governance: All these can happen in parallel for each of the Performance attributes while we help customers to implement and standardize their processes based on SCOR model
The industry standard metrics and how Solvanni helps a Company can measure them:
Solvanni follows a process-oriented approach as recommended by Gartner to measure Supply Chain business capability which provides the ability to measure a Process maturity and related Systems capability.
Solvanni ensures Customer gets to
- Align Processes with Industry standard practices and enable scalability and agility of related IT applications
- Standard Metrics to measure and identify areas for improvement – Projects and Enhancements
- Prioritize improvement initiatives based on quantitative analysis
- Bring one common definition and language of communication
Using these above Charts, customers can set their internal goals and measure their performances month over month, quarter over quarter and year over year.
The SCOR model has proven to benefit companies that use it to identify supply chain problems. The model enables full leverage of capital investment, creation of a supply chain road map, alignment of business functions, and an average of two to six times return on investment.
Thus, Solvanni can help you with its Anaplan based SCOR implementation to achieve real-time line of sight and ensure accurate supply forecasts across your extended enterprise to meet demand consistently and efficiently thus helping to identify critical supply planning patterns and signals with insight and a single source of truth.
Pls call us or send email to firstname.lastname@example.org for a demo and discuss your process standardization and excellence through SCOR Implementation journey