Abstract
The paper describes the implementation of process management methodology SCOR in a retail company. The supply chain operations reference model (SCOR) provides process management methodology, including processes, their metrics, benchmarking and diagnostic tools to assist an organisation in enhancing supply chain processes. The model contains multiple sections and is composed of management processes, such as Plan, Source, Make, Deliver, Return and Enable. The model can be used to describe processes of supply chains that are simple or very complex using a common set of definitions. As a result, processes of companies from different industries can be measured against industry peers using the same metrics. The paper summarises important milestones and lessons learnt during implementation of SCOR in a retail company. It explains benefits of SCOR, as well as main challenges in the implementation of new process modelling framework.
Highlights
Chain management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model [1]
Important part of SCM is coordination and collaboration with partners, such as suppliers, third-party service providers, and customers; providers and partners are called under one name of supply chain management (SCM), which normally includes all management, planning activities involved in sourcing, procurement and all logistics management activities
Global Supply Chain Forum (GSCF) framework does not provide strong benchmarking service. To use this framework company processes must be highly integrated and well-managed at the entire level of the company performance. Both APQC framework and supply chain operations reference model (SCOR) provide a great benchmarking possibility; APQC relies mostly on the performance metrics submitted by companies, while SCOR has a dedicated service executed by a well-known leader of the research and consultancy
Summary
Chain management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model [1]. Important part of SCM is coordination and collaboration with partners, such as suppliers, third-party service providers, and customers; providers and partners are called under one name of supply chain management (SCM), which normally includes all management, planning activities involved in sourcing, procurement and all logistics management activities. Managing effectively this complex system of interconnected activities, which are usually geographically spread, requires first of all the understanding of the existing processes from the perspective of their execution, input, output and related procedures. The framework implementation phase is described to show the main milestones of implementation
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