| With enterprise application integration driving so many | | | | for evaluating Performance Management and Best |
| changes within organizations, traditional methods of | | | | Practices information derived from practitioners' |
| measuring business performance need to be | | | | experience. It is entirely vendor and technology |
| augmented. | | | | independent and is the only real independent in-depth |
| Organizations must not only perform well: they must | | | | reference model for the complete supply chain of all |
| be able to identify how they perform, well or poorly | | | | companies. |
| - and why. Internal information isn't enough: | | | | SCOR makes it possible to make supply chain |
| companies need to look at and analyze information | | | | performance comparisons between companies by |
| from business partners all along the supply chain. | | | | industry. It also provides mapping processes to make |
| Operational business intelligence and performance | | | | more effective relationships between partners, |
| management are processes that provide your | | | | suppliers and customers: it is a tool for revitalizing |
| company with the ability to retrieve and act upon | | | | your ERP solution internally and externally. Companies |
| business critical, timely information from throughout | | | | deploying SCOR have dramatically cut costs and |
| your operations. Today's companies need real time | | | | boosted returns. Using the SCOR-model, Siemens |
| business intelligence software that captures, | | | | Medical, for example, has been able to cut costs by |
| processes and analyses information from all events | | | | 30 percent, reduce inventory by 60 percent, and cut |
| and transactions, across functions, departments and | | | | order lead-times from 22 weeks to just two. The |
| organizations. This data must be integrated for | | | | SCOR model is organized around five key |
| feedback to operations systems. | | | | management processes: Plan, Source, Make, Deliver |
| As businesses increasingly search for the best ways | | | | and Return. |
| to maximize supply chain performance, important | | | | Each of these processes is examined on three levels |
| answers may lie in a unique model called SCOR. In the | | | | of detail. The first level is strategic, what the |
| relentless search for ever improving returns on | | | | company wants from each process area. The second |
| investment and market competitiveness, some of | | | | level maps out exactly what is currently happening |
| the world's biggest corporations are applying a model | | | | within each process area. The third level examines |
| that is known as SCOR - the Supply-Chain Operations | | | | the operational level of the process areas, the area |
| Reference model - to maximize efficiency. | | | | where execution can be altered. |
| Siemens, Hewlett Packard, Intel, BASF, and Coca-Cola | | | | SCOR doesn't tell you what changes to make but it |
| all use the SCOR model because they know survival | | | | maps out where the weak links are. It is then |
| in today's fierce markets demands detailed scrutiny | | | | necessary to apply appropriate execution |
| and reengineering of every link in the supply chain - | | | | adjustments specific to the particular chain. |
| from the supplier's supplier to the customer's | | | | Successful supply chain management is about |
| customer. Recognizing the strength of the model, | | | | consistent scrutiny, getting real time information so |
| many integrated supply chain management software | | | | you can react to less than optimal performance. It |
| companies are developing stand alone software | | | | also means getting quality operational business |
| products to manage and analyze performance based | | | | intelligence. Companies that will be successful in the |
| on SCOR. | | | | long run are those that realize the answer lies in |
| The SCOR model is the industry de facto standard | | | | maximizing supply chain efficiency. |
| for providing Business Process Modeling data, metrics | | | | |