APICS Webinar Series

Peter Bolstorff, CSCP, SCOR-PExecutive DirectorAPICS Supply Chain Council

September 23, 2015

SCOR 101

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Introduction

Delegate from 3M and then Imation for SCOR 1.0 in 1996

Expertise in Manufacturing and Planning including Center of Excellence Leadership for Sales and Operations Planning

Authored, Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model, 3rd Edition

First Supply Chain Council non-staff Certified Instructor and now SCOR-P and CSCP

From 2002 to 2014, Helped 30+ Companies Analyze $13.5B USD Deriving $200M USD in Operating Income Improvements

Have volunteered with the SCC since the beginning

Industry experience includes Chemical, Retail, Food and Grocery, Electronics, Durable Goods, Consumer Packaged Goods, and Aerospace and Defense

Peter Bolstorff, CSCP, SCOR-PExecutive Director | APICS Supply Chain Council

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Seven Good Questions

1. Who is the APICS Supply Chain Council?

2. What is SCOR?

3. Why do companies use SCOR?

4. How do companies use SCOR?

5. What are the benefits companies realize as a result of using SCOR?

6. Who is using SCOR?

7. How can I or my company get started?

Who is the APICS Supply Chain Council?

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APICS SCC

The legacy SCC integrated with the former APICS Foundation to form the new APICS SCC. The new organization continues the tradition of funding scholarships and student programs; still operates as a global, non-profit entity; and actively manages the Supply Chain Operations Reference (SCOR) model.

Programs and Services

Plossl Dissertation, Scholars Program, Student Case Competition

Research Projects, Corporate Advisory Board, Executive Summit

SCORmark™ Benchmark

Publications, Resource Library, and Case Studies

Other Value Chain Frameworks including M4SC, DCOR®, CCOR®, and PLCOR®

Training is now available through APICS

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New Value Proposition

APICS SCCAPICS

Training, certification and

networking

Research, benchmarking and

frameworks

APICS Value Proposition

APICS delivers a total individual and corporate value proposition.

We help individuals achieve career development goals.We help corporations achieve strategic supply chain goals.

Individuals Corporate, Public Sector and Academic

Institutions

What is SCOR?

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SCOR Framework

Supplier CustomerSuppliers’Supplier

Source

Internal or External

Your Organization

Return

Deliver MakeSource

Return

Plan

Deliver

Return

Source

Return

MakeSource

Return

Plan

Deliver

Return

DeliverMake

Plan

Return Return

Customers’Customer

Enable

Internal or External

EnableEnable

SCOR MODEL

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SCOR Value

Business process re-engineering

Best practice maturity assessment

Benchmarks

Organizational and Individual Supply Talent Assessment

Value of a Reference Model

The SCOR app is here! Download on App Store, iTunes or Google Play today. Search APICS SCOR

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SCOR Metrics

Attribute SCOR 11.0 Metrics

Reliability RL.1.1 Perfect Order Fulfillment

Responsiveness RS.1.1 Order Fulfillment Cycle Time

Agility AG.1.1 Upside Supply Chain Flexibility

AG.1.2 Supply Chain Upside Adaptability

AG.1.3 Downside Supply Chain Adaptability

AG.1.4 Overall Value At Risk (VAR)

Cost CO.1.1 Total Cost to Serve

Asset Management Efficiency

AM.1.1 Cash-to-Cash Cycle Time

AM.1.2 Return on Supply Chain Fixed Assets

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SCOR Hierarchy

1

2

3

4

Major Processes

Process Categories

ProcessElements

ImprovementPractices

Defines the operations strategy. Process capabilities are set

(M)ake(S)ource(P)lan

(E)nable(R)eturn(D)eliver

RetailETOMTOMTS

sD1 sD2 sD3 sD4

Defines the configuration of individual processes. The ability to execute is set. Focus is on processes, inputs/outputs, skills, performance, best practices, and capabilities

Use of kaizen, lean, TQM, six sigma, benchmarking

Description Schematic CommentsDefines the scope, content, and performance targets of the supply chain

sD1.1Process inquiry

and quote

sD1.2Receive, enter,Validate order

sD1.3Reserve inv. and

delivery date

sD1.4Consolidate

orders

sD1.5Build loads

sD1.6Route

shipments

Level

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Other APICS SCC Frameworks

Custom

er processesSup

plie

r pr

oces

ses

Product & PortfolioManagement PLCOR™

Supply Chain SCOR®

Product & Process Design

DCOR™

Sales & Support

CCOR™

Why do companies use SCOR?

Visual • 14 © APICS Confidential and Proprietary

Live Poll

Pollev.com/apics

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Top Motivations to Use SCOR

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Live Poll Question 1

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Live Poll Question 2

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Cumulative Poll Results YTD

How do Companies Use SCOR

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SCOR Improvement Program Racetrack

C: Configure the Supply Chain

S:Set the Scope

O:Optimize Projects

Begin Next

Program

Rollout Approval

Preliminary ProjectPortfolio

Business Context Summary

SCOR ExecutionSCOR Deliverables

MetricSelection

SCORmarkBenchmarkingCompetitive

Requirements

GapAnalysis

Pre-SCOR Program Steps

StakeholderSupport

SCOR Education

Identify Organization

Identify Motivation Initiate Projects

Test, Pilot, Roll-outStrategicBusinessSummary

Document the Supply

Chain

InitialData

Review

Opportunity Analysis

Create Project

Portfolio

Link Gaps to Projects

Document Initial

Projects

ProjectKickoffs

BenefitSummaryR:

Ready forImplementation

SCORcard

PrioritizeProjects

Create SCOR Level 4 Processes

SCORWorkshop

DataSelection

MetricDefinition

ProgramKickoff

IdentifyMotivation

SupplyChain

DefinitionMatrix

CompetitiveRequirements

ThreadDiagram

StapleYourself

Level 3 ProcessDiagram

Improvement Program Charter

Confirm Program

Scope

GeographicMap

IndustryComparison

Visual • 21 © APICS Confidential and Proprietary

SCOR Improvement Program Organization

Detail ProjectSubprojects

Executive team

Executivesponsor

Teamleader

Other teams

Program team

Improvement team

Operationsmanagement

Program stakeholders

Customers

Functionalmanagers

Otherstakeholders

Channelpartners

Technologyteam

Supply chainteam

Financialteam

Program champion

Visual • 22 © APICS Confidential and Proprietary

Improvement Program Charter Deliverable

Section Subsection Discussion

IntroductionPurpose, table of contents, control/maintenance Improvement program charter overview

Program Definition

Scope Which supply chains selected

Business objectives Performance metrics

Improvement program objectives Supply chain performance targets

Program organizationDefinition of program team and shareholders

Program

Contents

Methodology Five-phased SCOR racetrack

Schedule Timeline, detailed activities, meetings

Roles Program activity responsibles

Deliverables and milestones Detailed deliverables and milestones

Risks and dependencies Critical risks and avoidance strategies

Benefits Measures of success, analysis

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Measuring Supply Chain Excellence

Attributes Metrics ParityAdvanta

geSuperi

or

Target Level

Performance

Your Organizat

ion

Gap to

Target

Customer

Facing Metrics

ReliabilityPerfect Order Fulfillment (%)

77.5% 85.6% 93.7% Advantage 69.2% 16.4%

Responsiveness

Order Fulfillment Cycle Time (days)

9.1 6.5 3.9 Parity 7.1 –

Agility

Supply Chain Flexibility (days)

45.0 33.0 21.0

Advantage

15.0 –

Supply Chain Adaptability (%)

35.5% 51.3% 72.0% 10.0% 41.3%

Internal

Facing Metrics

CostTotal Supply Chain Management Cost

% Revenue8.7% 5.6% 2.4% Superior 8.1% -5.7%

Asset Management

Efficiency

Cash to Cash Cycle Time (days)

55.4 30.5 5.5 Parity 160.5 -105.1

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Organization and Individual Talent Assessment

Gartner Maturity Stage Knowledge and Skills Process-Practice-

Performance-People

Orchestration SCOR-P and M4SC Leadership Series

Supplier’s Supplier to Customer’s Customer Supply Chain Community

CollaborationCSCP – Certified Supply Chain Professional

Supplier to Customer Single Instance

Anticipating

CPIM – Certified in Production and Inventory Management

Internal Process

ReactingPrinciples of Operations Management

Single Process

What are the benefits realized using SCOR?

Visual • 26 © APICS Confidential and Proprietary

SCOR Implementation Benefits

Average Operating Income improvement of 3% to sales (high 4.5% - low 1.5%)

Typical inventory turn improvements of 20% Delivery reliability improvement of 25% 20% improvement in flexibility 30% faster system implementations with 30% more

functionality Continuous improvement portfolios refreshed at a value

of 0.5% Mitigation of costs associated with risk management

Source: APICS Supply Chain Council 2002 to 2014

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APICS SCC Global Fund – Illustration Only

Who is using SCOR?

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Organizational Snapshot

404

CORPORATE AFFILIATES &

SPONSORs

ACADEMICAFFILIATES

PUBLIC SECTORAFFILIATES

6091253

253

1417

131 64

12

RK

COUNTRY #

1 United States 146

2 Germany 32

3 China 31

4 Switzerland 16

5 South Africa 15

6 Netherlands 14

7 United Kingdom

13

8 Canada 10

9 France 10

10 Sweden 10

TOP 10 COUNTRIES

How do we get engaged with the APICS SCC?

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APICS SCC Corporate Engagement Model

Affiliates

Global Employee Access to Content

Executive Summit

Research Projects

Benchmark

Digital Library

Training

Frameworks

Sponsors

Global License and Access to Content

Leaders of Leaders Focus Forums

Executive Summit

Digital Library

Training

Frameworks

Benchmark

32 © APICS Confidential and Proprietary

APICS SCC Individual Engagement Model

Evangelist

Download the SCOR app

Attend a public training class

Earn CSCP Certification

Earn the SCOR-P endorsement

Become an APICS member and participate on a research project

Executive Sponsor

Attend an executive briefing

Contact APICS SCC to discuss programs

Budget for affiliation

Host in-house SCOR class

Benchmark your company

Participate on APICS corporate advisory board

Attend APICS SCC Executive Summit

33 © APICS Confidential and Proprietary

Continue the Conversation

Peter Bolstorff, CSCP, SCOR-PExecutive Director APICS Supply Chain Councilpbolstorff@apics.org

Carolyn Lawrence – For Affiliate Subscription and On BoardingDirector Corporate Development APICS Supply Chain Councilclawrence@apics.org

Melinda Spring, SCOR-P – For Research ProjectsDirector ProgramsAPICS Supply Chain Councilmspring@apics.org

Dominic Longo, CSCP – For TrainingDirector Corporate ServicesAPICS dlongo@apics.org

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Visit APICS SCC Online www.apicsscc.org

Thank You!