SCOR MODEL The SCOR model Supply Chain Operations

SCOR MODEL The SCOR model - Supply Chain Operations Reference Model - developed by the Supply Chain Council (http: //www. supply-chain. org/) can be used to assess performance

Performance Monitoring in Supply Chain How can you assess how well your supply chain is performing? – SCOR model metrics include: • • On-time delivery performance Lead time for order fulfillment Fill rate - proportion of demand met from on-hand inventory Supply chain management cost Warranty cost as a percentage of revenue Total inventory days of supply Net asset turns

SCOR Copyright 2009 John Wiley & Sons, Inc. 10 -3

SCOR (cont. ) Copyright 2009 John Wiley & Sons, Inc. 10 -4

CPFR • COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT • Sellers & Buyers in a SC may collaborate along all or any of the Four activities of the Supply Chain: 1. Strategy & Planning 2. Demand Supply Management 3. Execution 4. Analysis

CPFR 1. Strategy & Planning: Partners determine the Scope of collaboration and agree upon Role & Responsibility with clear Check Points for monitoring by each other 2. Demand Supply Management: Partners collaborate to project more realistic Sales Forecast based on consumer demand at the point of sale. This helps in effective management of inventory across the Supply Chain

CPFR 1. Execution: As forecasts become firm, they are converted to better Replenishment Orders which in turn help in planning Production, Shipping , Receiving, Stocking and Distribution 2. Analysis: Partners evaluate and analyze Performance with a view to identify areas for further improvement within the scope of collaboration and also enlarge the scope , if required.