3. Supply Chain Operations Reference Model

[SOUND] Welcome back for lesson two where we will introduce the Supply Chain Operations Reference Model. Upon completion of this lesson, learners should be able to describe the Supply Chain Operations Reference or SCOR Model and discuss how SCOR may be used to analyze and improve Supply Chain Operations.
And we have a question.
Why do you think it may be important to have a common nomenclature and view of supply chain across customers,suppliers, and service providers in a supply chain?
I believe that different graphical representations resonate with different people. Therefore, in these lessons, we’ll present a wide variety of graphical depictions of supply chain. We’ll first turn our attention to the Supply Chain Operations Reference Model, also known as the SCOR Model. It was created by the Supply Chain Council and the Supply Chain Council is now merged with the American Production and Inventory Control Society, which is one of the many professional societies associated with Supply Chain. It’s interesting to note that since integrated supply chain management is a relatively new concept, until the early 1990s, there were no definitions associated with supply chain management. Each company had its own words, phrases, and metrics to describe logistics and supply chain activities. And it was often difficult to talk with channel partners in precise terms. The supply chain council was formed as a non profit in the 1990s to create a common nomenclature and common process components and metrics with a goal of enabling organizations to more effectively work with each other.
Let’s start from the point of view of an organization producing a finished product.
You see that there are several ovals representing the components of the supply chain. An organization serving as a finished manufacture converts materials into finished products. And once the conversion process is complete, they hand off or deliver the finished good to their customer in the next stage in the supply chain.
This representation of the score model is at the very highest level. Behind each of these ovals, there are hundreds of pages of documentation describing best practices, nomenclature, and metrics associated with several levels deep of detail on the process definitions. SCOR model additionally has differing process definitions based on the specific operating model of an industry such as the engineer to order, manufacturer versus a make-to-stock operation, such as in consumer products. And would be a good example of a make-to-stock operation. The efforts of the supply chain counselling creating and involving the SCOR model over the years made it much easier for supply chain providers, manufacturers, shippers, third-party providers, etc, to more effectively communicate on a day-to-day basis, and create rules, making supply chains more efficient.
This chart provides several examples of very high corporate level supply chain metrics. The metrics measure performance in key attributes such as supply chain reliability and responsiveness, flexibility, costs and asset management. And, as noted a moment ago, behind these high level metrics there are much more refined process specific metrics. Having these process and metric best practices available through the score model allows companies to compare their current operations to establish practices and make improvements where needed.
In this lesson, we have described the Supply Chain Operations Reference model and discussed how SCOR may be used to analyze and improve Supply Chain Operations. Thanks for listening, and we’ll see you on the next lesson. [MUSIC]

Jim Rohn Sứ mệnh khởi nghiệp