©2012 aite group llc. page 1 introduction to scor (supply chain operations reference) april 2012...

©2012 Aite Group LLC. Page 1

Introduction to SCOR(Supply Chain Operations Reference)

April 2012

Enrico CamerinelliSr. Analyst

©2012 Aite Group LLC.

Enrico Camerinelli• Sr. Analyst at Aite Group• Current research focuses on Global Transaction Banking,

Cash & Trade Management, and Supply Chain Finance• Formerly Executive Director of the Supply Chain Council• VP for Enterprise Applications at META Group• Pre-sales marketing manager at J.D. Edwards• Supply Chain and Plant Manager at Lear Corporation and

Arvin Exhaust• Co-Founder of the Supply Chain Finance Council and

member of the Italian delegation of UN/CEFACT


Agenda

• The SCOR model• SCOR and BSP face-to-face• Linking the physical and the financial valuechains


SCC Organization - Chapters

Japan Chapter Tokyo, Japan

Australia/New Zealand Chapter Sydney, Australia

South East Asia Chapter Singapore

SCORboard

European Chapter Brussels, Belgium

Southern Africa Cape Town, South Africa

North America Chapter Washington D.C.

Brazil Chapter

Greater China,

Shanghai


Supply Chain Operations Reference-Model(SCOR®) Overview


SCOR - 5 distinct Management Processes

Supplier

Plan

Customer Customer’sCustomer

Suppliers’Supplier

Deliver SourceMakeMake DeliverMakeSourceDeliver

Internal or External Internal or External

Your Company

Source

SCOR Model

Return Return ReturnReturn Return

Return Return

SourceReturn

Deliver

Best PracticesMetricsProcesses

©2012 Aite Group LLC.Page 8

SupplyChain

SCOR Framework Levels

Level-1 Sets Scope and Context, Geographies, Segments and Products

M3Make

Engineer to Order

M2Make

Build to Order

M1Make

Build to Stock

Level-2 Identifies Major Configurations within Geographies, Segments and Products

M2.01Schedule Production

Activities

M2.02Issue Product

M2.03Produce & Test

M2.04Package

M2.05Stage Product

M2.06Release Product to

Deliver

Level-3 Identifies key business activities within a configuration

Plan

Return

DeliverMakeSource

Plan

Return

DeliverMakeSource


Example of SCOR utilization


SCOR Process Modeling – Mapping AS-ISmaterial flows

RM Supplier

ManufacturingCompany

European Supplierof components

Warehouse

Manufacturing company thatProduces against a 15-days forecast

Supplies raw materials in bulks from the Far East against a monthly forecast

Pulls components from France based on production volumes

Ships weekly finished goods to a Distribution Warehouse based in Central Europe.


SCOR Process Modeling – Mapping AS-ISmaterial flows

RM Supplier

ManufacturingCompany

European Supplierof components

Warehouse

Manufacturing company thatProduces against a 15-days forecast

Supplies raw materials in bulks from the Far East against a monthly forecast

Pulls components from France based on production volumes

Ships weekly finished goods to a Distribution Warehouse based in Central Europe.

M1

S1S2D1

S1D2

D1


SCOR Metrics


SCOR Best Practices


SCOR and BSP face-to-face


SCOR and BSP

Plan

Return

DeliverMakeSource

BUY SHIP PAY


SCOR and BSP


SCOR-Plan

Plan

Return

DeliverMakeSource


SCOR-Source

Plan

Return

DeliverMakeSource


SCOR-Make

Plan

Return

DeliverMakeSource


SCOR-Deliver

Plan

Return

DeliverMakeSource


SCOR-Return

Plan

Return

DeliverMakeSource


Linking the physical and the financial value chains


Physical and financial value chain metrics


End-to-end physical value chain processesValue Chain Processes

Fulfill-to-service

Source-to-Pay

Source suppliers

Select supplierand goods

Negotiate salesterms

Purchase order

request

Purchaseorder

approval

Send purchase

order

Order-to-Cash

Receive order

Manageinventory

Producegoods

Transport Ship goods

Source-to-Pay

Receive goodsOffload,

inspect, and store goods

Receive invoice

Generate and sendpayment

Return

Turn intosales order and confirm

Prepare to load shipment

Send invoice

Order-to-Cash

Receivepayment advice

Process payment advice

Collectpayment

Reconcile and account


Extracting Liquidity From Value Chain ProcessesApplying SCF Components and Extracting Liquidity

Fulfill-to- Service

Source-to-Pay

Order-to-Cash

Source-to-Pay

RETURN

Pre- shipment finance

Post- shipment finance

Reverse factoring

Buyer finance

Buyer- driven payables

Invoice financing/discounting

Warehouse finance

ECA supplier financing

Confirming

Distribution finance

BPO

Warehouse finance

Warehouse finance

Order-to-Cash

Receivables purchase

Invoice financing/discountin

Purchase order

commitment

Purchasing card

Letter of credit

Guarantees

Cash on delivery

Forfaiting Asset- based lending

Leasing

Project finance

Commodity finance


Aite Group: Partner, Advisor, Catalyst

Aite Group (pronounced eye-tay) is an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry.

Enrico Camerinelli- Senior [email protected]+39.039.21.00.137www.aitegroup.com

©2012 aite group llc. page 1 introduction to scor (supply chain operations reference) april 2012...

Documents