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Chapter 13 Supply chain planning and control 395
Figure 13.9 Matching the operations resources in the supply chain with market requirements
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‘Make’ is the transformation process of adding value to products and services through
mixing production operations processes.
‘Deliver’ processes perform all customer-facing order management and fulfilment activities
including outbound logistics.
‘Plan’ processes manage each of these customer–supplier links and balance the activity of
the supply chain. They are the supply and demand reconciliation process, which includes
prioritization when needed.
‘Return’ processes look after the reverse logistics flow of moving material back from
end-customers upstream in the supply chain because of product defects or post-delivery
customer support.
All these processes are modelled at increasingly detailed levels from level 1 through to more
detailed process modelling at level 3.
Benchmarking performance
Performance metrics in the SCOR model are also structured by level, as is process analysis.
Level 1 metrics are the yardsticks by which an organization can measure how successful it
is in achieving its desired positioning within the competitive environment, as measured by
the performance of a particular supply chain. These level 1 metrics are the key performance
indicators (KPIs) of the chain and are created from lower-level diagnostic metrics (called
level 2 and level 3 metrics) which are calculated on the performance of lower-level processes.
Some metrics do not ‘roll up’ to level 1, these are intended to diagnose variations in performance
against plan.
Best practice analysis
Best practice analysis follows the benchmarking activity that should have measured the
performance of the supply chain processes and identified the main performance gaps. Best
practice analysis identifies the activities that need to be performed to close the gaps. SCC
members have identified more than 400 ‘best practices’ derived from their experience. The
definition of a ‘best practice’ in the SCOR model is one that:
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Is current – neither untested (emerging) nor outdated.
Is structured – it has clearly defined goals, scope and processes.