Supply chain managers use process frameworks such as the SCOR model. Process frameworks provide a structured approach for thinking about what needs to be done, breaking it down into steps, and then being clear about who is responsible for each step. Process frameworks help to illustrate the interdependencies within a supply chain, and provide a basis for effective collaboration.
- The human body is a complex system, so in order to understand how it works, we break it down into subsystems, like the skeletal system, the nervous system, and the cardiovascular system. Supply chains are complex systems, too, so I'll show you how to dissect a supply chain by separating it into processes. One of the most popular ways to do this is with a framework called the Supply Chain Operations Reference model, or the SCOR model, which is maintained by the APICS Supply Chain Council.
The SCOR model breaks supply chain processes into six main groups. Plan, the processes where you map out how everything in the supply chain is supposed to work. Source, where you build relationships with your suppliers and buy your materials. Make, which includes all of the processes for manufacturing or assembly. Deliver, the processes for getting your products or services into the hands of your customers. Return, those often overlooked processes for taking back products that your customers don't need or want.
And, finally, enable, which includes all of the other processes that you need to keep a supply chain working smoothly. Within each of these high-level process groups, there are subprocesses and key performance indicators. The subprocesses define how a company executes its supply chain. And the KPIs allow you to compare the performance of a supply chain to your peers through benchmarking. When we talk about a supply chain, we also have to remember that it extends beyond our own company.
So the deliver process for my company needs to integrate with the source process for my customers. And plan, return, and enable processes should be linked the whole way from my customer's customers to my supplier's suppliers. Using a framework like the SCOR model can make it easier to see how processes interact and to clarify who's responsible for each step. By seeing what's happening more clearly, we can measure the results more accurately.
Doctors monitor KPIs all the time to diagnose their patients. Having accurate data about the patient's temperature, blood pressure, and cholesterol can provide important clues about how healthy their patient is. Using a process framework allows us to do the same thing with a supply chain. A good framework is an essential part of aligning an organization around a common set of goals and successfully implementing supply chain management.
- Explore the fundamentals of source inputs within a supply chain.
- Examine the role of returning products in a supply chain.
- Determine how to calculate total costs.
- Explore the role of investing in flexibility when managing a supply chain.
- Discover how to increase visibility with a control tower.
- Identify the role innovation plays in supply chain management.
- Examine how artificial intelligence and machine learning help to monitor supply chain trends.
- Break down the fundamentals of selecting the right technology when implementing a supply chain agenda.
- Determine the best ways to collaborate externally when implementing a supply chain agenda.