UNDERSTANDING THE SCOR MODEL AND PACE FRAMEWORKS
Supply-Chain Operations Reference-model (SCOR)
- Founded on five distinct management processes: Plan, Source, Make, Deliver, and Return
- Co-developed by PRTM to establish a framework with a balanced set of metrics that provide insight into key areas of supply chain management processes
- 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
- Recognized by the 850+ 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 the Product and Cycle-time Excellence (PACE®) 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.
® Supply-Chain Operations Reference-model (SCOR®) is a registered trademark of the Supply-Chain Council, Inc.
® Product and Cycle-time Excellence® and PACE® are registered trademarks of PRTM, Inc.