After many years in which companies invested in improving their internal processes, and especially in the last decade where technological advances allowed the dream of integration, and globalization allowed commercial expansion, companies with a global vision have reached a strong conclusion: Competing individually is a losing strategy.
A direct consequence of this statement was the inevitable change in the strategies of these companies to focus on the Alignment and Synchronization of their Supply Chains, with which they have achieved competitive advantages in a hostile environment of high proliferation of products, high variabilities of the demands and high global competition.
What is Managing Supply Chains?
Let's start with a couple of definitions:
Supply Chain - all interconnected resources and activities necessary to create and deliver products and services to customers. In the strictest sense, the supply chain extends from the point where the earth's natural resources are extracted to the point where they are returned to the earth: "from the earth to the earth."
Supply chain management (SCM) - It is the Integration, Synchronization and Optimization, in order, of all the strategic, tactical and operational activities to achieve the highest possible profitability for all the members of the chains, from the primary supplier to the final consumer.
What is SCOR and how can you improve the efficiency of your supply chain?
SCOR is a reference model of the supply chain process created by the Supply Chain Council (www.supply-chain.org) designed to cover all industries. SCOR enables companies to analyze all aspects of their supply chains, identify cost and service performance improvement objectives, adopt universally recognized best practices and measurements, and optimize technology investments.
An evaluation of your supply chains with the SCOR model will allow you to see a light at the end of the tunnel, through a master program of improvement of your chains, which includes aspects of human resources, processes, hierarchical measurements and effective application of technology. information.
SCOR is the model most used today in the world by companies interested in permanently improving their global competitive level.
SCOR ranges from the supplier's supplier to the customer's customer.
Companies using SCOR make basic strategic decisions regarding
to its operation in the following areas:
· Performance in deliveries
· Performance in order fulfillment
· Replenishment capacity (Manufacture to stock)
· Handling time for order fulfillment (ETO, MTO, CTO)
· Perfect fulfillment of the order
· Supply chain response time
· Production flexibility
· Total supply chain management cost
· Value-added productivity
· Warranty cost or cost of reworking returns
· Cash-to-cash cycle time (Cash to Cash)
· Days of supply inventory
· Return on assets
But companies cannot be best-in-class in all of these areas, so they will need to choose which of the above are most important to their success.
Below is a graphical representation of the types of processes that SCOR contemplates:
Companies that use the SCOR model to configure their supply chains have traditionally obtained the following results:
Source: 2001 PRTM ISC Benchmark Study
