It was developed in 1997, in U.S. Supply – Chain Council, a nonprofit organization, composed mainly of practitioners dedicated to making progress in terms of systems and practices in supply management-delivery.
It is a methodology developed in a cluster composed of several large groups of americans and which aims to present some standard descriptive elements and assessment elements within a supply chain management .
In a context of globalization of the economy and the diversification of distribution networks: numerous factories, warehouses, platforms scattered in several countries, SCOR model aims to facilitate communication between different participants in the same supply chain. This communication goes through the formalization of a language standard, uniform performance indicators, tools for comparing logistics organizations. This activity enables enterprises to more easily compare between them and in relation to the best.
In addition, the SCOR add important financial dimension: number of days of additional processing, financial cycle, asset rotation, etc.. To perform this activity, SCOR model describes now according to four levels:
- Type of process
- Supply chain configuration
- Decomposition process
- Decomposition process elements
Level 1: Type of process. This level defines the extent and content of the model around the process: purchasing, manufacturing, distribution, return. It allows for a competitive performance bases.
Level 2: The configuration of the supply chain. Enterprises configure their supply chain by several models, eg direct or indirect distribution, manufacturing order or after predictions, etc..
Level 3: The decomposition processes. Every great process, purchasing, manufacturing, distribution, recovery is decomposed in various processes of input and output information. Each of them is associated with performance indicators of best practices.
Level 4: The decomposition process elements. This level describes the actions to be implemented to achieve a competitive advantage and to adapt to competition.
This results in four factors that allow understanding the competitive determinants related to supply chain management.
1). Chain desired performance objective. It is about defining a target customer and supply value chain concerned. This offer must be differentiating relative to competitors, distribution networks served by specially designed to deliver the customer value. This customer orientation is shared by all the officials of the company.
2). Designing a supply schemes, physical distribution system information.
3). Synchronizing different links of the chain according to these two factors receive
4). Implementation means of supply chain performance evaluation.
SCOR model processes are: planning, sourcing, production, delivery and product returns.