Scor

CHAPTER ONE

OBJECTIVES, METHODOLOGY, APPROACH AND DEFINITION OF TERMS

“Using SCOR has become a way of life for the company, including getting the top executives together to make across-the-board decisions. (…) It costs nothing. All SCOR is is [sic!] a tool that tells you what the possible metrics are you can use to determine how your business is doing. (…) SCOR isn’t magic. It’s a good, simple management tool, and I don’t know why everyone doesn’t use it.”1

1.1 Foundations and Objectives of the Work

1.1.1 Arrival at and objectives of the research The last ten or so years have seen a pronounced change in the level of importance that companies attach to logistical processes.2 Whereas logistics have, traditionally, been seen largely as a vertical function of organizations, the more recent comprehensive functional and integrated view has become more widespread, particularly in the guise and the framework of a Supply Chain.3 This process may be discerned, for example, in the creation of a new management discipline, Supply Chain Management, and the increasing emphasis on this discipline within companies.4 In conjunction with this change of focus, in recent times a growing number of companies have introduced a new position, namely that of Chief Supply Chain Officer (CSCO) or Supply Chain President, who often reports directly to the Chief Executive Officer (CEO).5

2

APPLICATION OF THE SCOR MODEL IN SUPPLY CHAIN MANAGEMENT

This work moves the Supply Chain into the center of the discussion. The Supply Chain can, in the first instance, be represented by means of the physical flow of material. It can also be used to illustrate the underlying organization or organizational segment: procurement, for example, or sales. Finally, the representation is possible by use of Supply Chain processes: the purchasing process, for example, or the sales process. In the course of this study, the primary focus will be on the range of processes within an organization’s Supply Chain....