Transcript Introduction to SCOR (Supply Chain Operations Reference) April 2012 Enrico Camerinelli Sr. Analyst Page 1 Page 1 ©2012 Aite Group LLC.

Introduction to SCOR
(Supply Chain Operations Reference)
April 2012
Enrico Camerinelli
Sr. Analyst
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©2012 Aite Group LLC.
Enrico Camerinelli
• Sr. Analyst at Aite Group
• Current research focuses on Global Transaction Banking,
Cash & Trade Management, and Supply Chain Finance
• Formerly Executive Director of the Supply Chain Council
• VP for Enterprise Applications at META Group
• Pre-sales marketing manager at J.D. Edwards
• Supply Chain and Plant Manager at Lear Corporation and
Arvin Exhaust
• Co-Founder of the Supply Chain Finance Council and
member of the Italian delegation of UN/CEFACT
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©2012 Aite Group LLC.
Agenda
• The SCOR model
• SCOR and BSP face-to-face
• Linking the physical and the financial valuechains
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©2012 Aite Group LLC.
SCC Organization - Chapters
SCORboard
Greater China,
Shanghai
Japan Chapter
Tokyo, Japan
North America Chapter
Washington D.C.
European Chapter
Brussels, Belgium
South East Asia Chapter
Singapore
Brazil Chapter
Australia/New Zealand Chapter
Sydney, Australia
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Southern Africa Cape Town,
South Africa
©2012 Aite Group LLC.
Supply Chain Operations Reference-Model
(SCOR®) Overview
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SCOR 5 distinct Management Processes
Plan
Deliver
Source
Return
Return
Make
Source
Deliver
Make
Deliver
Return
Make
Return
Return
Suppliers’
Supplier
Source
Supplier
Deliver
Source
Return
Return
Return
Your Company
Internal or External
Customer’s
Customer
Customer
Internal or External
SCOR Model
Processes
Metrics
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Best Practices
©2012 Aite Group LLC.
SCOR Framework Levels
Supply
Chain
Plan
Level-1 Sets Scope and
Context, Geographies,
Segments and Products
Source
Make
Deliver
Return
M2
Make
Build to Order
M1
Make
Build to Stock
M3
Make
Engineer to Order
Level-2 Identifies Major
Configurations within
Geographies, Segments and
Products
Level-3 Identifies key
business activities within a
configuration
M2.01
Schedule
Production
Activities
M2.02
Issue Product
M2.03
Produce & Test
M2.04
Package
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M2.05
Stage Product
M2.06
Release Product to
Deliver
©2012 Aite Group LLC.
Example of SCOR utilization
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SCOR Process Modeling – Mapping AS-IS
material flows
Manufacturing company that
Produces against a 15-days
forecast
Supplies raw materials in
bulks from the Far East
against a monthly forecast
Manufacturing
Company
RM Supplier
European Supplier
of components
Pulls components from
France based on production
volumes
Warehouse
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Ships weekly finished goods
to a Distribution Warehouse
based in Central Europe.
©2012 Aite Group LLC.
SCOR Process Modeling – Mapping AS-IS
material flows
Manufacturing company that
Produces against a 15-days
forecast
Supplies raw materials in
bulks from the Far East
against a monthly forecast
M1
Manufacturing
Company
D1
RM Supplier
S1
S2
D1
European Supplier
of components
D2
Pulls components from
France based on production
volumes
S1
Warehouse
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Ships weekly finished goods
to a Distribution Warehouse
based in Central Europe.
©2012 Aite Group LLC.
SCOR Metrics
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©2012 Aite Group LLC.
SCOR Best Practices
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©2012 Aite Group LLC.
SCOR and BSP face-to-face
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©2012 Aite Group LLC.
SCOR and BSP
Plan
Make
Source
Deliver
Return
BUY
SHIP
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PAY
©2012 Aite Group LLC.
SCOR and BSP
Plan
Source
Make
Deliver
Return
BUY
SHIP
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PAY
©2012 Aite Group LLC.
SCOR and BSP
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©2012 Aite Group LLC.
SCOR-Plan
Plan
Source
Make
Deliver
Return
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©2012 Aite Group LLC.
SCOR-Source
Plan
Source
Make
Deliver
Return
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©2012 Aite Group LLC.
SCOR-Make
Plan
Source
Make
Deliver
Return
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©2012 Aite Group LLC.
SCOR-Deliver
Plan
Source
Make
Deliver
Return
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©2012 Aite Group LLC.
SCOR-Return
Plan
Source
Make
Deliver
Return
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©2012 Aite Group LLC.
Linking the physical and the financial value
chains
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©2012 Aite Group LLC.
Physical and financial value chain metrics
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©2012 Aite Group LLC.
Physical and financial value chain metrics
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©2012 Aite Group LLC.
End-to-end physical value chain processes
Value Chain Processes
Source-to-Pay
Source
suppliers
Select supplier
and goods
Negotiate
sales
terms
Purchase
order
request
Purchase
order
approval
Send
purchase
order
Order-to-Cash
Transport
Send
invoice
Turn into
sales order
and confirm
Ship goods
Receive order
Fulfill-to-service
Prepare
to load
shipment
Produce
goods
Manage
inventory
Source-to-Pay
Receive goods
Offload,
inspect, and
store goods
Receive
invoice
Generate
and send
payment
Return
Order-to-Cash
Reconcile
and
account
Collect
payment
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Process
payment
advice
Receive
payment advice
©2012 Aite Group LLC.
Extracting Liquidity From Value Chain Processes
Applying SCF Components and Extracting Liquidity
Source-to-Pay
Commodity
finance
Purchasing
card
Buyer finance
Order-to-Cash
ECA supplier
financing
Purchase
order
commitment
Guarantees
Letter of credit
Post -shipment
finance
Fulfill-to-Service
Leasing
Warehouse
finance
Forfaiting
Warehouse
finance
Buyer -driven
payables
Confirming
Invoice
financing/discounting
RETURN
Warehouse
finance
Asset -based
lending
Project finance
Source-to-Pay
Cash on
delivery
Pre -shipment
finance
Distribution
finance
BPO
Reverse
factoring
Order-to-Cash
Invoice
financing/discountin
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Receivables
purchase
©2012 Aite Group LLC.
Aite Group: Partner, Advisor, Catalyst
Aite Group (pronounced eye-tay) is an independent research and
advisory firm focused on business, technology and regulatory issues
and their impact on the financial services industry.
Enrico Camerinelli- Senior Analyst
[email protected]
+39.039.21.00.137
www.aitegroup.com
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©2012 Aite Group LLC.