Introduction to SCOR

A Supply Chain common language

πŸš€ What is SCOR?

The Supply Chain Operations Reference (SCOR) model is the global standard for understanding, measuring, and improving supply chain performance.

Developed by APICS (now part of ASCM), it provides a common language, process framework, and performance metrics that any organization can use β€” regardless of size or industry.

At its core, SCOR helps companies answer three fundamental questions:

  1. What are the key processes in my supply chain?
  1. How do I measure and compare their performance?
  1. Which practices and capabilities drive improvement?

🧩 Why SCOR Matters

SCOR is more than a model β€” it’s a management toolkit for diagnosing supply chain gaps and driving performance improvements.

It allows organizations to:

  • Identify inefficiencies and bottlenecks
  • Benchmark against industry peers
  • Align people, processes, and technology
  • Foster collaboration across suppliers, manufacturers, and customers

And because SCOR uses standardized terminology, teams across functions (procurement, planning, logistics, etc.) can speak the same language.


πŸ—οΈ The SCOR Framework: 4 Key Pillars

SCOR is built around four core components, often referred to as the 4 P’s:

Pillar
Description
🏭 Processes
Define what the supply chain does – from planning and sourcing to making, delivering, returning, and enabling.
πŸ“ˆ Performance
Establish how well each process performs, using measurable metrics and attributes.
πŸ’‘ Practices
Capture how processes are executed β€” the proven methods or innovations that improve outcomes.
πŸ‘₯ People
Define who performs each activity, along with their skills, experience, and competencies.

🏭 1. Processes – The Heart of the SCOR Model

SCOR divides all supply chain activities into six primary process categories:

Process
Purpose
Example Activities
Plan
Balance supply and demand; align business objectives with resources.
Demand planning, capacity planning, S&OP.
Source
Manage suppliers and material acquisition.
Supplier selection, purchase orders, inbound logistics.
Make
Convert materials into finished products.
Manufacturing, packaging, quality control.
Deliver
Manage customer orders and outbound logistics.
Order entry, shipping, invoicing.
Return
Handle product returns or supplier recalls.
Return authorizations, repairs, reverse logistics.
Enable
Support the entire supply chain with data, systems, and infrastructure.
IT systems, HR, finance, and compliance.
Notion image
Β 

Each process is broken into three levels:

  • Level 1: The process category (e.g., Plan, Source, Make).
  • Level 2: The configuration level – details how each process is structured.
  • Level 3: The process element level – defines specific metrics and best practices.
Notion image
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πŸ“ˆ 2. Performance – Measuring Supply Chain Health

To assess effectiveness, SCOR defines five performance attributes, each supported by a hierarchy of metrics.

Attribute
Focus
Example KPI
Reliability (RL)
Ability to deliver as promised.
Perfect Order Fulfillment
Responsiveness (RS)
Speed of performance.
Order Fulfillment Cycle Time
Agility (AG)
Adaptability to change.
Upside Supply Chain Flexibility
Cost (CO)
Efficiency in operations.
Supply Chain Management Cost
Asset Management (AM)
Optimal use of resources.
Cash-to-Cash Cycle Time
Customer-focused: Reliability, Responsiveness, Agility

πŸ“Š Metric Hierarchy

  • Level 1 KPIs β†’ Strategic view (e.g., Delivery Performance).
    • Notion image
  • Level 2 Metrics β†’ Diagnostic indicators that explain Level 1.
  • Level 3 Metrics β†’ Operational metrics used for root-cause analysis.

πŸ’‘ 3. Practices – Proven Ways to Excel

Practices are the specific techniques or technologies that enhance process performance.

They can be emerging, standard, or best-in-class, depending on the maturity of the organization or industry.

Examples of Emerging Practices

  • Omni-channel Fulfillment
  • Additive Manufacturing (3D Printing)
  • Blockchain for Traceability
  • Digital Supply Chain
  • Demand-Driven MRP & S&OP
  • Internet of Things (IoT)
  • Scenario Planning

Examples of Best Practices

  • Supply Chain Risk Monitoring
  • Supply Chain Finance Integration
  • Cost of Quality Analysis
  • Metadata-Driven Analytics
  • Integrated Business Planning (IBP)
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πŸ‘₯ 4. People – Building Supply Chain Capability

SCOR acknowledges that people are the backbone of any supply chain.

It standardizes competency levels and skill definitions to align roles with process maturity.

Level
Description
Novice
No prior experience; follows detailed instructions.
Beginner
Performs tasks with limited perception of context.
Competent
Understands priorities and can make trade-offs.
Proficient
Oversees and adapts based on context.
Expert
Applies intuition and pattern recognition to new challenges.
πŸ“Œ

Tip: Combining SCOR’s People and Performance dimensions enables effective talent management and training planning across the supply chain.


πŸš€ Putting SCOR into Action

Implementing SCOR involves four practical steps:

  1. Map your current supply chain using SCOR processes.
  1. Measure performance with Level 1–3 metrics.
  1. Analyze gaps against benchmarks and best practices.
  1. Improve by aligning processes, people, and technology.

The result?

A supply chain that is measurable, comparable, and continuously improving.


✍️ Key Takeaway

βœ… SCOR transforms complex supply chains into structured, measurable, and improvable systems.

βœ… It bridges the gap between strategy and execution, helping organizations deliver more reliably, faster, and at lower cost β€” all while continuously learning and adapting.

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