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Part Three
Planning and control
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Is proven – there has been some clearly demonstrated success.
Is repeatable – it has been demonstrated to be effective in various contexts.
Has an unambiguous method – the practice can be connected to business processes,
operations strategy, technology, supply relationships, and information or knowledge management
systems.
Has a positive impact on results – operations improvement can be linked to KPIs.
The SCOR roadmap
The SCOR model can be implemented by using a five-phase project ‘roadmap’. Within this
roadmap lies a collection of tools and techniques that both help to implement and support
the SCOR framework. In fact many of these tools are commonly used management decision
tools such as Pareto charts, cause–effect diagrams, maps of material flow and brainstorming.
Phase 1: Discover – Involves supply-chain definition and prioritization where a ‘Project
Charter’ sets the scope for the project. This identifies logic groupings of supply chains within
the scope of the project. The priorities, based on a weighted rating method, determine which
supply chains should be dealt with first. This phase also identifies the resources that are
required, identified and secured through business process owners or actors.
Phase 2: Analyse – Using data from benchmarking and competitive analysis, the appropriate
level of performance metrics are identified; that will define the strategic requirements of each
supply chain.
Phase 3: Material flow design – In this phase the project teams have their first go at creating a
common understanding of how processes can be developed. The current state of processes is
identified and an initial analysis attempts to see where there are opportunities for improvement.
Phase 4: Work and information flow design – The project teams collect and analyse the work
involved in all relevant processes (plan, source, make, deliver and return) and map the productivity
and yield of all transactions.
Phase 5: Implementation planning – This is the final and preparation phase for communicating
the findings of the project. Its purpose is to transfer the knowledge of the SCOR team(s)
to individual implementation or deployment teams.
Benefits of the SCOR model
Claimed benefits from using the SCOR model include improved process understanding
and performance, improved supply chain performance, increased customer satisfaction and
retention, a decrease in required capital, better profitability and return on investment, and
increased productivity. And, although most of these results could arguably be expected when
any company starts focusing on business processes improvements, SCOR proponents argue
that using the model gives an above average and supply focused improvement.
Critical commentary
Although the SCOR model is increasingly being adopted, it has been criticized for underemphasizing
people issues. The SCOR model assumes, but does not explicitly address, the
human resource base skill set, notwithstanding the model’s heavy reliance on supply chain
knowledge to understand the model and methodology properly. Often external expertise
is needed to support the process. This, along with the nature of the SCC membership,
also implies that the SCOR model may be appropriate only for relatively large companies
that are more likely to have the necessary business capabilities to implement the model.
Many small to medium-sized companies may find difficulty in handle full-scale model
implementation. Some critics would also argue that the model lacks a link to the financial
plans of a company, making it very difficult to highlight the benefits obtainable, as well as
inhibiting senior management support.