Using the SCOR model for controlling and auditing...

Using the SCOR model for controlling and auditing the supply chain

Without an adequate system of indicators, it is impossible to talk about the quality management of business processes in supply chains. At the same time, this topic has not been sufficiently developed at the scientific level, and by practicing consultants. Developers of software and business applications are taking only the first steps of creating modules of automated data collection and control for informational support of controlling and forming a system of indicators for evaluating the effectiveness of supply chains. Therefore, in real practice, companies still need to either apply general management accounting techniques (such as MTP or functional-cost analysis), or focus on a number of specially developed models for controlling supply chains. The most mature and well-developed product of this kind is the SCOR-model.

Describing supply chains by combining ready-made component processes (more than 200), the model can be used to describe both the simplest supply chains and complex complex network structures, using a standard set of definitions and functionalities. As a result, disparate business sectors and individual companies can be easily integrated into the description of the supply chain structure of almost any complexity. The model allows to create a basis for planning, controlling and improving supply chains both within the framework of global projects and for the specific purposes of a specific company. In the context of developing a controlling system, the use of the SCOR model can solve the following tasks (Figure 4.16):

• modeling of business processes, identification of major process categories and relationships between them;

• Define a set of KPI strategic (and partially tactical) level;

• setting the target KPI values ​​of the strategic level based on benchmarking;

• Analysis of bottlenecks in the supply chain;

• Definition of directions of reengineering on the basis of analysis of best practices of processes;

• Assessment of the prospects for the introduction of advanced technologies and concepts (their impact on the performance indicators of supply chain processes).

The process structure of the SCOR model, features of its methodology, as well as examples of the use of business processes in supply chains for auditing are presented in [19,26, 37, 64, 71, 76, 80, 89,120,121].

In the context of supply chain controlling tasks, we will dwell in more detail on the structure and characteristics of the performance indicators included in the SCOR model. As shown in Ch. 2, the indicators of the performance of the supply chain in SCOR conditionally divided into two groups.

1. The performance indicators of the chain (performance attributes) are the grouped metrics used to set the direction of the supply chain strategy. In themselves, performance indicators can not be measured, with their help -

Stages of developing a supply chain control system using the SCOR model

Fig. 4.16. Stages of developing a supply chain control system using the SCOR model

they just set the direction of the strategy. Performance indicators can be divided into two categories: external (customer-oriented) and internal (focused on the business processes of the focus company).

2. Metrics (metrics). Metrics (a system of measurable indicators) are designed to assess the possibility of achieving strategic decisions, indicated in terms of indicators of the functioning of the chain. It is an established standard for evaluating an activity or process. SCOR metrics are used to diagnose supply chain problems. The SCOR model allocates three levels of metrics (indicator groups).

Level 1 contains indicators that diagnose the overall condition of the supply chain. Also known as strategic metrics or KPI groups. A comparative analysis of these first-level indicators helps in setting realistic goals and objectives for the selected strategic direction of the supply chain.

Level 2 includes indicators that in turn are diagnostic for the first level metrics and help to identify the reasons for deviating the actual KPI from the planned values.

Level 3 contains indicators that respectively serve to diagnose the causes of the deviations of the second-level metrics.

All the metrics from the first to the third level of the SCOR-model have a hierarchical structure and reflect the state of the processes of the corresponding level of decomposition. Decomposition helps to identify the factors that caused the deviations of the indicators from the planned values, which in the future are subject to more thorough research (Figure 4.17).

As a kind of "skeleton indicators controlling the effectiveness of key business processes in the supply chain SCOR-Committee SCC once proposed the performance indicators of the first level of the model, i.e. meters of high rank, which can generalize a number of logistical processes (Table 4.7).

Specified in Table. 4.7 meters and the system of basic KPI characterize the external (customer-directed, attributes 1, 2) and internal (related to assets, attributes 3-5) efficiency of business processes in the supply chain. Metrics

Fig. 4.17. The relationship between the KPI system in the SCOR model and the supply chain audit directions

Table 4.7. Supply chain performance parameters and first-level SCOR model indicators

Logistic Performance Attributes

Defining Performance Attributes

KPI measures (core)

1. Reliability of delivery in the supply chain

Functioning of the supply chain during delivery: the right product - in the right place - at the set time - in the required state and packaging - of the specified quality and quantity - with the correct documents to the right consumer

Executing delivery schedules.

Customer Satisfaction Ratio. Customer satisfaction from the position of the "perfect order"

2. The speed of supply chain reaction

The speed at which logistics delivers goods to consumers

Order execution time. Duration of individual logistic cycles

3. Productivity/Resource efficiency of logistics infrastructure

The ability of elements of transport, warehouse and information infrastructure of logistics to provide customer needs and competitive advantages

Productivity of warehouse hoisting and technological equipment. Productivity of vehicles. Performance/throughput of the information system

4. Costs in the supply chain

Costs associated with logistics operations in the supply chain

Total costs in the volume of sales of goods.

Total costs of managing the supply chain. Resource efficiency from the point of value added. Return/Waste Management Costs

5. The effectiveness of logistics asset management in the supply chain

The effectiveness of logistics in asset management to meet demand. Includes management of all assets: fixed capital (invested in the logistics infrastructure) and working capital

The cash cycle time.

Stocks, in days of delivery. Number of turnover of assets

Evaluations of activities in the supply chain should be designed in such a way that they take into account the impact of ongoing processes on operating costs, working capital and long-term supply chain assets. If this is not done, then the efficiency of the supply chain is at risk of underestimation both by the management of the chain's focus company and by external consumers.

In order to position the supply chain in a competitive business environment and to implement strategic controlling of key business processes, the SCOR Committee of the Supply Chain Council developed a strategic breakout map. KPI - SCOR-card, an example of which is shown in Table. 4.8. The table presents the basic KPIs of the 1st level of the SCOR model of the hypothetical supply chain. All indicators are divided into two large groups:

1) customer-oriented KPI (metrics: supply chain reliability, response and flexibility);

2) resource-oriented internal supply chains (metrics: costs and assets) - form the basis of the strategic map.

As an example, in the fact The strategic map shows the current values ​​of the corresponding KPIs of the analyzed supply chain [50].

Table 4.8. Strategic card breaks KPI (example)

Supply chain SCOR-card

Benchmarking Platform

Value from improvement

Overview of Metrics

Level 1 KPI



cf. industry



Supply Chain Reliability

Execution before an agreed date





3.0 million dollars

Satisfaction Ratio





Percent of completed orders



Order lead time

$ 1.4 million


Response Time in the Supply Chain

13 days




Flexibility of production

45 days

30 days

25 days

20 days



Total Cost of SCM


$ 1.9 million

Flow control costs






Resource Value of Value Added


156 thousand


306 thousand


460 thousand




Stocks in supply days

119 days

55 days

38 days

22 days


Cash Turnover Time

4.4 million dollars

The number of asset revolutions





The goal of strategic controlling the efficiency of business processes in the supply chain is benchmarking - comparing current KPI values ​​with competitive environment indicators, industry average data or industry leaders (values ​​are given in the corresponding columns of the "benchmarking platform" in Table 4.8). Based on the results of the comparison, breaks KPI, which serve as the basis for making strategic decisions to improve supply chain activities.

As a result of benchmarking and strategic SC planning, the top management of the SCM department of the focus company of the example of the supply chain considered was the decision to introduce new target long-term (for 3 years) standards (plan values) for the following key KPIs:

• Percentage of "committed orders to bring to the level of 85%;

• the average lead time for customer orders is reduced from 15 to 3 days;

• the reaction time in the supply chain is reduced from 97 to 55 days;

• The total cost of operations in the supply chain is reduced from 19 to 8% in relation to the volume of sales;

• the time of turnover of cash to reduce from 96 to 28 days.

For each new version of the target values ​​of the main KPI business cases have been developed which have shown a high return and the increase of yield (see column . The value of the improvement Table 4.8.)


Thus, SCOR-card is a strategic map of "KPI breaks" can be a good tool for controlling the supply chain.

Next, consider an example of the sequential implementation of the SCOR model in developing a supply chain control system.

thematic pictures

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