The SCOR model is based on interrelated processes that support the operation of each segment of the supply chain, thus ensuring the functioning of the supply chain as a whole.
All modern management is based on the proven advantage of the process approach in management over the functional approach. It is this approach that ensures effective interaction both between the company’s divisions and with external supply chain participants. Therefore, the process approach became the basis of the ISO 9000-9001 series of standards.
Thus, the use of the SCOR model promotes the implementation of quality management for those companies that build their production and management systems on the process approach.
The main processes in SCOR are:
- PLAN – Planning;
- SOURCE – Purchasing;
- MAKE – Manufacturing;
- DELIVER – Delivery;
- RETURN – Return Logistics;
- ENABLE – Auxiliary processes that support supply chain operations.
The SCOR model views the supply chain not as a community of organizations involved in it, but as a chain of interrelated processes that can occur both inside and outside of a single company.
In vertically integrated companies these processes may be performed by independent functional units (branches) within the structure of such an organization, while in horizontally built supply chains the processes may be performed by legally independent partners on the basis of concluded contracts. The simplest example may be the presence of a separate 3PL-company in the supply chain, which is engaged in transportation. And it can be involved in an unlimited number of supply chains with different partners, and the degree of its involvement is determined by the configuration of a particular supply chain.
The main thing is that the configuration of the supply chain, regardless of the number of organizations involved in it, should not change its content, meaning and purpose, which can be defined as meeting demand in the most efficient way possible.