The SCOR Model: A Blueprint for Supply Chain Excellence

A foundational framework developed by the Association for Supply Chain Management (ASM) is the SCOR model. SCOR stands for Supply Chain Operations Reference and is a diagnostic tool for supply chain management. With this model, the user comprehensively maps out and describes their organization's supply chain operations. The framework breaks down supply chain operations into six core processes: Plan, Source, Make, Deliver, Return, and Enable. Once you have applied the framework to your organization, it can be used to evaluate, benchmark, and improve supply chain performance.

As you'll find, this model also roughly guides the different Sections of this blog. Plan corresponds to Supply Chain Management, Source to Procurement and Supply Management, Make to Operation and Process Management, Deliver/Return to Transportation and Logistics, and Enable to Technology and Leadership.

Let's take a high-level look at each core process.

Plan

• Balances supply with demand across the whole chain

• Covers forecasting, inventory policy, and capacity planning

• Sets the rules that govern other domains

  
  

Source

• Managing supplier relationships, contracts, and performance

• Procurement of raw materials, components, or goods

• Includes supplier qualification, order scheduling, and payment

  
  

Make

• Includes production and manufacturing activities

• Covers production scheduling, work orders, quality control, and output

  
  

Deliver

• Order management, warehousing, transportation, and last-mile delivery

• Bridges the gap between finished goods and the customer's hands

• Includes invoicing and delivery confirmation

  
  

Return

• Handles reverse logistics — defective, excess, or recalled products

• Covers both returns from customers and returns to suppliers

• Can be disruptive to forward logistics

• Often, the most underfunded domain despite its impact on customer loyalty

  
  

Enable

• The connective tissue of the other five domains

• Covers data management, compliance, risk, contracts, and talent

• Without it, improvements in the other domains rarely stick

Each of these processes can have its own sub-levels and Key Performance Indicators (KPIs). For instance, the Make process may be further subdivided into M1 - Build to Stock, M2 - Build to Order, and M3 - Engineer to Order.

By applying the 6 core processes in the context of your organization in a granular way, you can use the model to identify weaknesses in your processes, compare them with industry peers, and/or redesign operations systematically. Because you have explicitly described your processes, it also helps standardize and create consistency in your business execution.

Note: This model was developed in 1996, and it has since been updated. The latest iteration, called SCOR DS (SCOR Digital Standard), was released in 2019 and updated in 2022. Please find free information available at https://www.ascm.org/corporate-solutions/standards-tools/scor-ds/. I will highlight some differences in the next post.