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How To Apply SCOR Model in Supply Chain Operations

Manufacturers need practical methods to manage every aspect of their operations, including their supply chain process. The SCOR model supply chain managers are using around the world provides just such an opportunity to optimize the reliability, consistency, and efficiency of supply chain performance.

The supply chain operations reference (SCOR) model lets manufacturers standardize their supply chain management. It establishes methods to measure and track results, enabling continuous improvement. With modern technology and resources, manufacturers can use the SCOR model in supply chain management to leverage supply chain data.

Breaking Down the Supply Chain SCOR Model

To follow the SCOR model supply chain example, manufacturers must focus on six key aspects of supply chain management. These six areas make up the SCOR framework, coming together to create a complete supply chain management solution.

Plan: Supply and Demand Planning

Like other business processes, resilient supply chain management relies on effective planning. Ongoing supply chain shortages around the world have highlighted the importance of supply chain certainty, and implementing effective supply and demand planning provides a potential solution.

Organizations must carefully plan the flow of their supply chain operations. This entails evaluating and establishing best practices throughout supply chain processes, including those involved in the five remaining steps.

Areas such as transportation, inventory, and compliance are important to consider, but so are less-tangible elements. Ensuring that your supply chain strategy aligns with business goals and implementing effective communication can prove just as vital.

Source: Raw Materials and Goods Sourced From Suppliers

Sourcing is, of course, an essential component of supply chain management. Approaching sourcing deliberately can improve resilience and safeguard manufacturers against unexpected changes in demand and availability.

Manufacturers need defined processes for sourcing. Vetting new suppliers, establishing supplier agreements, and the receipt and testing of raw materials are critical. All of this must also be carefully balanced with cost to maintain profitability.

Make: Manufacturing and Production

While they are often considered to be separate elements of an organization, the direct connection between supply chain management and production control cannot be overlooked. Supply chain strategies must account for everything that happens on the factory floor.

Ensuring proper production and quality control prevents sudden increases in demand for raw materials used up while producing defective products. Providing effective translation of current work orders and inventory into raw material demand is also an essential part of supply chain management.

Deliver: Facilitating and Scheduling Order Delivery

Transportation is another critical aspect to focus on, particularly in sectors with significant on-time delivery and fast turn-around demands. Manufacturers must ensure that their products are out the door and on the way to the correct customers ASAP, with as few errors as possible.

Improving transportation visibility is one effective way to do this. Modern technology provides cost-effective real-time visibility for trailers and their contents. Manufacturers can stay on top of any potential disruptions and act to correct them immediately rather than after the fact.

Return: Processing Product Returns

Manufacturers need a way to manage product returns, whether from their customers or when dealing with their own suppliers. Returns can arise due to a wide range of quality and compliance issues, including routine procedures such as the return of containers.

Handling returns can present a challenge, as they are often unanticipated and require quick scheduling of special transport. This can complicate tracking specific returns, increasing the risk of lost product. RFID tags and other modern asset management solutions let manufacturers improve accuracy and speed when processing returns.

Enable: Enablement of Supply Chain Strategies

Finally, manufacturers need to take a proactive approach to supply chain strategy development. To do so, they must enable improvement wherever possible. Maintaining compliance, tackling risk management, and leveraging data are all vital elements in allowing the best possible strategies.

Improved visibility is one of the most significant ways that manufacturers can enable effective strategies. Understanding inventory, transportation, production, and other elements lets manufacturers make the best decisions concerning their supply chain management. Today, advanced sensor technology delivers unparalleled visibility.

Applying the SCOR Model in Your Supply Chain Processes

Supply chain operations reference SCOR model to develop a clear map of which areas manufacturers should focus on to strengthen their supply chain management. However, addressing those areas requires a closer look at performance on multiple levels.

Manufacturers evaluate each area at three levels – major processes, process categories, and process elements.

The first level of evaluation involves defining the scope that each area entails and establishing performance metrics to evaluate. Manufacturers must decide on the specific key product indicators (KPIs) that mean success, whether that’s on-time delivery, throughput rate, or other examples.

Once these metrics are defined, manufacturers can take a closer look at the second level – process categories. This involves defining benchmarks for the established metrics. Manufacturers must capture accurate data on their processes to determine what process capabilities are and how well they’re being met.

The third level focuses on finding solutions to improve operations beyond those benchmarks. Manufacturers will develop and execute new best practices and strategies to improve performance. With ongoing monitoring of their established metrics, manufacturers can understand what works and what doesn’t.

The SCOR model provides a clear framework for manufacturers to continuously improve their operations. Modern solutions provide more accurate real-time data than ever before, and the SCOR model ensures that manufacturers put that data to its best use.

Discover How Surgere Supports Your Operational Improvement

The SCOR model supply chain managers use today provides many opportunities to improve operations. With a better understanding of their processes and clear insight into crucial supply chain metrics, manufacturers can continue to build stronger and more resilient supply chains.

Achieving the benefits that the SCOR model has to offer requires the right tools to enhance visibility across your supply chain. Surgere provides solutions that leverage the latest in supply chain technology, hardware, and software. You can achieve real-time visibility of production, transportation, inventory, and more.

With the right solution, you can use the SCOR model to improve the reliability, consistency, and efficiency of your supply chain. Get in touch today to see how Surgere can meet your team’s unique needs.

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