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Understanding
the SCOR Model &
PACE Framework
SCOR
Model
The
Supply Chain Operations
Reference-model (SCOR) isolates
key supply-chain management
processes and matches their
process elements against
industry-specific best practices,
benchmarking performance data, and
appropriate software applications,
providing users with a framework
for understanding where they need
to make improvements. SCOR builds
on the concepts of business
process reengineering,
benchmarking, and process
measurement by integrating their
techniques into a cross-functional
framework that addresses
management issues at the
enterprise rather than at the
functional level.
SCOR
is recognized by the 800 member
companies of the Supply-Chain
Council as an effective
"toolkit" for companies
wanting to upgrade their supply
chains for strategic
advantage.
Getting
results
While
using the Supply Chain Operations
Reference-model is not a
substitute for developing a
comprehensive operations strategy,
it is a tool for ensuring that the
operations strategy has the
desired outcome.
Cross-industry
studies show that integrated
supply-chain management typically
yields the following
results:
- 25–50% reduction in total
supply chain costs
- 25–60% reduction in
inventory-holding
- 25–80% increase in forecast
accuracy
- 30–50% improvement in
order-fulfillment cycle time
PACE
Framework
In technology-based industries,
business excellence cannot be
achieved without product
development excellence. Profitable
growth comes from introducing the
right products at the right pace,
with strong manufacturing ramp-ups
and market-building launches.
Industry leaders have product
development engines that power
their growth machines.
To understand how they compare
with the leaders, companies must
first recognize where they are in
their own product development
capability. Our parent company,
PRTM, has created a model to help
companies gauge their "stage
of process capability." This
model has been correlated to
product development performance:
We know that higher-stage
companies—those with more
advanced development
practices—perform better than
their lower-stage counterparts.
Top performers follow two
practices
Our benchmarking data show that
companies that make the most
effective and sustained
improvement in their product
development capability follow two
basic practices: They upgrade
related aspects of their
development process at the same
time, and they manage a rapid
transition between stages of
capability.
Benchmarking measures such as
time-to-market, schedule variance,
pipeline throughput, and R&D
effectiveness are used to
determine where performance needs
improvement.
In our increasingly networked
economy, companies are using
PRTM's PACE framework to establish
a common "language" for
product development and a
structured approach to managing
it, enabling easier resource
sharing, rapid knowledge
dissemination, more innovative
customer solutions, and lower
costs across divisions or
companies.
Extending the PACE approach
across the multinational
enterprise allows companies to
integrate technology partners and
suppliers into the development
process, facilitating rapid
technology access and utilization.
This, in turn, helps companies
achieve faster time-to-market with
the best whole product offerings,
optimally priced within diverse
markets.
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