Transcript SCOR Model Supply Chain Management using “Supply Chain

“Supply Chain
Supply
Chain
Operations
using
Reference
Model
Management
(SCOR Model)”
The Supply Chain Council
• The SCC is an independent, not-for-
profit, global corporation.
• membership open to all companies
and organizations interested.
• applying and advancing state of-theart supply. chain management.
• systems and practices.
SCOR Model
Purpose
Benefit
ofand
Process
•● Management
Measured,
managed,
controlled.
Standardand
descriptions
of
management
practices
that
produce
processes.
Reference
Model.
best-in-class
performance.
● Tuned and returned to a specific
●
A
framework
of
relationships
•●purpose.
Implemented
purposefully
to among
achieve
Standard
alignment
to features
and
competitive
the
standardadvantage.
processes.
functionality.
• A Process Reference Model.
•●•Describe
A Processunambiguously
Reference
Model
andContains.
Standard
metrics
to measure
process
communicated.
•performance.
Becomes a Powerful Tool in the
Hands of Management.
SCOR Model
All
interactions,
from
order
●•
SCOR
does not
attempt tofrom
describe
every
All customer
market
interactions,
the
entry through
paid
invoice.demand to
understanding
aggregate
business
processofor
activity,
the
fulfillment
of
each
order.
including:
• All product (physical material and
Sales
marketing(demandgeneration)
transactions,
from supplier’s
•service)
Modeland
Scope
and Structure.
supplier
customer’s
customer,
Researchtoand
technology
development
including
equipment, supplies,
spare of
Product development
some elements
parts, bulk product,
post-delivery
customersoftware,
support. etc.
SCOR Model
Flexibility
Total
Source
Cyclefeatures
Time to Completion
SCOR
Model
Best
Responsiveness
% Orders/lines
Practices joint Service
Agreements
processed
complete
Reliability
Metric
Alliance and
Leverage
agreements
Performance
Attributes
Inventory DOS
Assets product
Acquisition
Costs Definition
Cost Time and
Process
Category
Cost
to Expediting
Therelated
procurement,
delivery,the
receipt
Sourcing
Processes
of Procurement,
and
transfer
of raw material
items,
Delivery, Receiving
andand
Transfer.
subassemblies,
product
or services.
Process Category: Source Stocked
Product.
AllEach
popular
and all
part of
had national
its own brands,
sales force,
marketing
consumer products
giant Sara
Lee. But and
up
department,
purchasing
organization
until foursheet.
years It
ago,
each unusual
was operating
as a
balance
wasn’t
for a given
separate tocompany.
setup truck
was
retailer
receive And
nine the
separate
causing big
problems
forinSara
In of
fact,a
deliveries
from
Sara Lee
the Lee.
course
Sara Lee
had nine
different
entities
producing
week.
Retailers
weren’t
happy
about
it. We
packaged
meat
products
retail
sale Larry
and
were
difficult
to do
businessforwith,
admits
nine supply
to support
them. logistics
Rogers,
vicechains
president
of integrated
for Sara Lee Food.
Factory
Restaurance
Warehouse
Supermarket
Dealer
●
Bakery
Brownies & Bars
Breads & Pastries
Pies
Muffins
Cake
Cheese Cake
Mini Breakfast
Bakery
Individual Desserts
Meat
Smoked Sausage
Beef
Breakfast Sausage
Corn Dog
Franks
Ham
Meal components
Pork
Poultry
Sandwiches
Italian Meats
Bacon
Beverages
Caffiato
Cappuchino
Coffee System
Hot Smoothies
Hot Tea
Ice Tea
Chai & Steamers
Hot Cocoa
Roast & Ground Coffee
The grocery industry was consolidating, he says,
and wanted to deal with as few vendors as possible. It
was a bad situation for Sara Lee as well. The panoply of
individual brands had led to numerous inefficiencies
throughout the organization. And it diluted the clout
that a supplier the size of Sara Lee might otherwise
wield. That’s no small concern, when you’re dealing
with merchandising behemoths like Wal-Mart Stores.
Clearly, it was time for a new approach. As it happened,
Sara Lee was on the verge of a massive reorganization,
which would find the company consolidating business
units, shedding unwanted assets and redefining its
identity in the competitive world of food and consumer
goods. No part of the organization would remain
untouched. One of its key efforts focused squarely on
the supply chain. The goal was nothing less than
creation of a single organization for the movement of
all retail food and beverage products to retailers.