Supply Chain Operations Reference Model (SCOR) is considered as a major tool for the management so that they can address and improve the various issues related to the supply chain management of the business organizations in order to tale effective business decisions (Estampe et al., 2013). Thus, SCOR model gives the description of various business procedures in order to satisfy the demands of the customers. This particular model assists the organizational managers in explaining different kinds of processes along with the aspects of organizational supply chain management so that they can improve various business processes. The model of SCOR is shown below:
Figure 1: Supply Chain Operations Reference Model (SCOR)
(Source: Gopal & Thakkar, 2012)
According to the above diagram, there are five steps in the SCOR model. They are Plan, Source, Make, Deliver and Return. These sources are discussed below:
Plan: This first step includes the planning and management of demand and supply. In this step, organizational managers make balance between the organizational resources with supply chain requirements and they determine the entire supply chain communication.
Source: In this step, the organizational managers source the necessary materials and infrastructure. This includes the management of inventory, supplier network, agreement of the suppliers, supplier’s performance (Liu et al., 2014).
Make: The main function of this step is manufacturing and production. The major activities of this step is production, packaging, staging the products and to release the products. Some other major activities of this step are the management of production network, facilities, equipments and management of transportation Gopal & Thakkar, 2012.
Deliver: In this step, the major activities are management of order, warehousing the final products and transportation. In this step, the organizational managers of the companies are responsible for the management of finished products, their transportation, product life cycle and others.
Return: In this process, the business organizations are responsible for the management of returned products. There are different kinds of returns like return of containers, inventory and others (Liu et al., 2014).
It needs to be mentioned that the SCOR framework adds value to the business corporations by providing them some major benefits. Organizational managers can employ SCOR in different levels of the production process in order to measure the efficiency of supply chain. Thus, the companies become able in the measurement of the performance effectiveness of organizational supply chain; because of this, organization managers get the clear idea about the function of the five steps of SCOR that take place repeatedly (Ntabe et al., 2015). In this context, it needs to be mentioned that success of one-step in SCOR largely depends on the success of the pervious step. This particular process leads to the identification is loopholes in the supply chain operations of the organizations. In addition, with the help of SCOR model, organizations managers enjoy some other major benefits like full leverage of capital investments, preparation of the road map of supply chain, alignment of business objectives with SCOR model and others (Huo, 2012). Thus, based on the above discussion, it can be said that SCOR framework adds major value to the business organizations.
Estampe, D., Lamouri, S., Paris, J. L., & Brahim-Djelloul, S. (2013). A framework for analysing supply chain performance evaluation models. International Journal of Production Economics, 142(2), 247-258.
Gopal, P. R. C., & Thakkar, J. (2012). A review on supply chain performance measures and metrics: 2000-2011. International Journal of Productivity and Performance Management, 61(5), 518-547.
Huo, B. (2012). The impact of supply chain integration on company performance: an organizational capability perspective. Supply Chain Management: An International Journal, 17(6), 596-610.
Liu, P., Huang, S. H., Mokasdar, A., Zhou, H., & Hou, L. (2014). The impact of additive manufacturing in the aircraft spare parts supply chain: supply chain operation reference (scor) model based analysis. Production Planning & Control, 25(13-14), 1169-1181.
Ntabe, E. N., LeBel, L., Munson, A. D., & Santa-Eulalia, L. A. (2015). A systematic literature review of the supply chain operations reference (SCOR) model application with special attention to environmental issues. International Journal of Production Economics, 169, 310-332.
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