Thursday, April 9, 2009

The Process Modeling Pillar

By describing supply chains using process modeling building blocks, the model can be used to describe supply chains that are very simple or very complex using a common set of definitions. As a result, disparate industries can be linked to describe the depth and breadth of virtually any supply chain.
SCOR(r) is based on five distinct management processes: Plan, Source, Make, Deliver, and Return.
Plan - Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production, and delivery requirements.
Source - Processes that procure goods and services to meet planned or actual demand.
Make - Processes that transform product to a finished state to meet planned or actual demand.
Deliver - Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management.
Return - Processes associated with returning or receiving returned products for any reason. These processes extend into post-delivery customer support.
With all reference models, there is a specific scope that the model addresses. SCOR is no different and the model focuses on the following:
All customer interactions, from order entry through paid invoice.
All product (physical material and service) transactions, from your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.
All market interactions, from the understanding of aggregate demand to the fulfillment of each order.
SCOR does not attempt to describe every business process or activity. Relationships between these processes can be made to the SCOR and some have been noted within the model. Other key assumptions addressed by SCOR include: training, quality, information technology, and administration (not supply chain management). These areas are not explicitly addressed in the model but rather assumed to be a fundamental supporting process throughout the model.

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