Some of the most well-known and most detailed performance metrics for supply chain are encompassed in the Supply Chain Operations Reference (SCOR) model.
Organizations use the standard definitions and data requirements within the SCOR model to evaluate their supply chains and link tactical level metrics back to strategic goals and measurements.
SCOR metrics “measure the ability of processes to achieve the strategic objectives associated with performance attributes” (APICS Dictionary, 16th edition). They are defined in three levels, with an additional level for tools.
Level 1: Measures the overall health of the supply chain, and provide key performance indicators for strategic directions and major processes.
Level 2: Uses process categories to define operations strategy and set process capabilities.
Level 3: Uses individual process elements to focus on inputs/outputs, skills, performance, best practices and capabilities.
Level 4: Defines tools and activities to be used for improvement.
SCOR Performance Attributes
SCOR categorizes its series of metrics into five performance attributes. Performance attributes are “a classification for metrics used to formulate strategic direction” (APICS Dictionary, 16th edition).
The ability to perform tasks as expected. Reliability focuses on the predictability of the outcome of a process. Typical metrics for the Reliability attribute include delivering a product on time, in the right quantity and at the right quality level.
The speed at which tasks are performed and the speed at which a supply chain provides products to the customer. Examples include cycle-time metrics.
The ability to respond to external influences and marketplace changes to gain or maintain a competitive advantage. SCOR Agility metrics include adaptability and overall value at risk.
The cost of operating the supply chain processes. This includes labor costs, material costs, and management and transportation costs. A typical cost metric is cost of goods sold.
The ability to efficiently use assets. Asset management strategies in a supply chain include inventory reduction and insourcing rather than outsourcing. Metrics include inventory days of supply and capacity utilization.
SCOR also classifies business processes into nineteen practices to assist businesses in identifying areas of interest. Processes within these are also broken down by standard, best, and emerging practices.
Business Process Analysis and Improvement
Information and Data Management
Manufacturing and Production
New Product Introduction
People Management (Including Training)
Planning and Forecasting
Product Lifecycle Management
Purchasing and Procurement
Risk and Security Management
Sustainable Supply Chain Management
Special Applications of SCOR
Some special applications of SCOR include: