The supply chain operations reference model (SCOR) Is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company. The model describes the business processes required to satisfy a customer’s demands. It also helps to explain the processes along the entire supply chain and provides a basis for how to improve those processes. TheSCOR model was developed by the supply chain council with the assistance of 70 of the world’s leading manufacturing companies.
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It has been escribed as the most promising model for supply chain strategic declslon making The model integrates business concepts of process reengineering, benchmarking, and measurement into its framework. This framework focuses on five areas of the supply chain: plan, source, make, deliver, and return. PLAN Demand and supply planning and management are included in this first step. Elements Include balancing resources with requirements and determining communication along the entire chain. The plan also Includes determining business rules to Improve and measure supply chain efficiency.
These business rules span nventory, transportation, assets, and regulatory compliance, among others. The plan also aligns the supply chain plan with the financial plan of the company. SOURCE This step describes sourcing infrastructure and material acquisition. It describes how to manage inventory, the supplier network, supplier agreements, and supplier performance. It discusses how to handle supplier payments and when to receive, verify, and transfer product. MAKE Manufacturing and production are the emphasis of this step. Is the manufacturing process make-to-order, make-to-stock, or engineer-to-order?
The make step Includes, roduction activities, packaging, staging product, and releasing. It also includes managing the production network. equipment and facilities, and transportation. DELIVER Delivery includes order management, warehousing, and transportation. It also includes receiving orders from customers and invoicing them once product has been received. This step involves management of finished inventories, assets, transportation, product life cycles, and Importing and exporting requirements. RETURN Companies must be prepared to handle the return of containers, packaging, or defective product.
The return involves the management of business rules, return nventory, assets, transportation, and regulatory requirements BENEFITS USING THE
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SCOR MODEL analyze its supply chain. It gives companies an idea of how advanced its supply chain is. The process helps companies understand how the 5 steps repeat over and over again between suppliers, the company, and customers. Each step is a link in the supply chain that is critical in getting a product successfully along each level. The SCOR model has proven to benefit companies that use it to identify supply chain problems.
The model enables full leverage of capital investment, creation of a supply hain road map, alignment of business functions, and an average of two to six times return on investment SCOR MODEL OF PAKISTAN TOBACCO COMPANY (PTC) Pakistan Tobacco Company (PTC) Ltd, pakistan was incorporated in 1947 immediately after partition of the subcontinent. It is part of the trans-national British American Tobacco (BAT) group. lt is the market leader in more than 50 countries selling over 300 brands, committed to providing consumers with pleasure through excellent products.See More on Inventory