Help for manufacturers from the Supply-Chain Council
of the Supply-Chain Operations Reference-model (SCOR), a business
process model used to describe and measure the business activities
associated with all phases of satisfying a customer's demand.
The model is used by companies and governments around the world to describe and improve supply chains using standard process terms, metrics, and best practice.
Version 6.1 of the SCOR-model is the eighth revision since the model's introduction in 1996.
In Version 6.1, there are two primary areas of change. Firstly, return activities within the model have been restructured to more exhaustively and accurately depict the sequence of activities that take place between a customer and a supplier, including a more detailed description of the activities associated with the return authorisation and return scheduling activities. Additionally, metrics have been identified to measure return processes, activities that enable a more effective return process, and the inputs and outputs of information flow have been described.
Secondly, as part of an effort to identify implementation alternatives for practitioners, the council has begun an initiative to review and expand the documented best practices within the model. This version of the model begins that update with the inclusion of a new definition of best practice and the addition of best practices in collaborative planning forecasting and replenishment, along with sales and operations planning.
The food industry is increasingly turning to supply chain solutions as a means of achieving production efficiency and meeting traceability requirements. In a recent report, AMR Research said that after years of caution, the market for supply chain management (SCM) software has rocketed. The company claims that the SCM software market will grow five per cent, from $5.24 Billion (€4.35) in 2003 to $5.5 Billion in 2004.
The bulk of new investment will be in supply chain execution initiatives and demand-driven supply networks, the analyst added.
"An obsession with cost cutting and asset utilisation has evolved into a focus on innovation and creating an ability to capitalise on the variability of demand," said Kevin O'Marah, vice president of research at AMR Research. "Using technology to leap-frog the competition, reinvigorate growth channels, and provide shareholder value is the new earmark for supply chain savvy enterprises."
The Supply-Chain Council is a global, not-for-profit trade association open to all types of organisations. Council members include organisations from virtually all industry segments worldwide. The body sponsors and supports benchmarking studies and the development of the Supply-Chain Operations Reference-model (SCOR).
