"biz-supply-chain"

Supply Chain Analysis (SCOR Model)

Overview

The SCOR (Supply Chain Operations Reference) model structures supply chain analysis into five core processes: Plan, Source, Make, Deliver, Return. It provides a common language for analyzing, benchmarking, and improving supply chain performance from supplier's supplier to customer's customer.

Framework

IRON LAW: End-to-End, Not Silo-by-Silo

Supply chain optimization must consider the ENTIRE chain. Optimizing
procurement (Source) without considering production capacity (Make) or
delivery capability (Deliver) creates bottlenecks downstream.

A local optimum in one process often creates a global problem elsewhere.

The Five SCOR Processes

1. Plan — Demand forecasting, supply planning, inventory strategy

• Demand forecast accuracy, S&OP process, inventory policies
• Question: "Do we make/buy the right amount at the right time?"

2. Source — Supplier selection, procurement, incoming quality

• Supplier scorecards, lead times, sourcing strategy (single vs multi)
• Question: "Are we getting the right inputs at the right cost and quality?"

3. Make — Production, assembly, manufacturing

• Production scheduling, capacity utilization, quality control, WIP management
• Question: "Are we converting inputs to outputs efficiently?"

4. Deliver — Order management, warehousing, transportation, last-mile

• Order fulfillment rate, delivery speed, logistics cost, channel management
• Question: "Are we getting products to customers reliably and affordably?"

5. Return — Returns processing, reverse logistics, warranty/repair

• Return rate, reverse logistics cost, refurbishment, disposal
• Question: "Are we handling returns efficiently and learning from them?"

Key Supply Chain Metrics

Process	Metric	Formula/Definition
Plan	Forecast Accuracy	1 - |Actual - Forecast| / Actual
Plan	Inventory Days	Inventory / (COGS / 365)
Source	Supplier On-Time Rate	On-time deliveries / Total deliveries
Source	Supplier Defect Rate	Defective units / Total received
Make	OEE	Availability × Performance × Quality
Deliver	Perfect Order Rate	Orders delivered on time, in full, without error
Deliver	Order-to-Delivery Cycle	Time from order to customer receipt
Return	Return Rate	Returns / Total shipments