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Supply chain management as interactive philosophy to manage the total flow of a distribution channel from suppliers to the ultimate user. There are five challenge for supply chain, such as customer service, cost control, planning and risk management, Supplier/partner relationship management and talent, The assignment is an excerpt of an article published by the Supply Chain Council (SCC) on its SCOR model. Students are expected to discuss the question: Is SCOR alone enough to address supply chain challenges?
The following are five key supply chain management challenges and How SCOR address supply chain challenges.
2. How SCOR address supply chain challenges.
2.1 Customer service
Effective supply chain management is all about delivering the right product in the right quantity and in the right condition with the right documentation to the right place at the right time at the right price. If only it were as simple as it sounds.
Solution: The enterprises select performance indicator of supply chain management of SCOR modern to measure the performance, master the practic situation of supply chain operation. Comparing with the merely post-analysis it will be more valuable by using real-time analysis in terms of index,which will be able reflect the real-time operation of the supply chain. Combing the performance indicator and benchmarking management and further establishing the goal of performance improvement(Ballou, 2009). SCOR modern respectively provides the current index, goal level,regular level of the industry, the gap with the best level of the same industry, as well as finding out the method and direction of index for improvement on demand by using the form of score card. However, referencing the level of the same industry will face the problem of collecting the material in execution by using external benchmarking management, and hard to get the relative material of the enterprise in the same industry. In term of this job, it usually carries out by majority of association of the same industry fairy and objectively. SCOR develop strategies for meeting new customer expectations, and respond to domestic and global market growth.
Supply chain operating costs are under pressure today from rising freight prices, more global customers, technology upgrades, rising labor rates, expanding healthcare costs, new regulatory demands and rising commodity prices. To control such costs there are thousands of potential metrics that supply chain organizations can and do measure. Managers need to zero in on the critical few that drive total supply chain costs within their organizations.
Solution:SCOR is the first standard supply chain operations reference-model with the ability to offer the chances for the enterprises to communicate appropriately about the problems of supply-chain, evaluate the performance objectively and improve the goals based on the performance. It can be catogrized into three ranks: top level, configuration level and process element level. Each level is the operation of supply chain analysis. At the same time, according to the specific process owned by different enterprises, under the third level, there could be the fourth and the fifth level to describe the ranks more detailed, but the process definition of these levels are not included in the SCOR model(Cooper, M. C., and L. M. Ellram. 2008).
2.3.Planning and Risk Management
Supply chains must periodically be assessed and redesigned in response to market changes, including new product launches, global sourcing, new acquisitions, credit availability, the need to protect intellectual property, and the ability to maintain asset and shipment security. In addition, supply chain risks must be identified and quantified. SCC members report that less than half of their organizations have metrics and procedures for assessing, controlling, and mitigating such risks.
Solution: SCOR modern combines specific operation and performance index, quantitative analyzes the operation performance of the whole supply chain, serves as the the tool of confirming the chance of perfecting rapidly for supply chain assessment as well as providing a series of referential goals for its best performance and features. It helps users establish rules and strategies, assign responsibilities, coordinate responses, and monitor current conditions(Lee, H. L., and C. Billington. 2007).
2.4.Supplier/partner relationship management
Different organizations, even different departments within the same organization, can have different methods for measuring and communicating performance expectations and results. Trust begins when managers let go of internal biases and make a conscious choice to follow mutually agreed upon standards to better understand current performance and opportunities for improvement(Lee, H. L., and C. Billington. 2007).
Solution:COR modern uses standard item and symbol to provide a convenient and easy-to-use description mothed and thinking way,which is applied to supporting the operation process of understanding supply chain, and establishing the process that every functional department of the whole organization can communicate well, as well as defining the correlation of the every objection operation in the whole supply chain.. Using a common language and framework makes it easier for teams to communicate, speeds benchmarking efforts, and enhances the evaluation of best practices.
As experienced supply chain managers retire, and organizations scale up to meet growing demand in developing markets, talent acquisition, training, and development is becoming increasingly important. Supply chain leaders need a thorough understanding of the key competencies required for supply chain management roles, specific job qualifications, methods for developing future talent and leaders, and the ability to efficiently source specific skill sets.
Solution:SCC members have developed methodologies for applying SCOR to human resource management, and even organized the capabilities of their global supply chain staff around the SCOR framework(Lee, H. L., and C. Billington. 2007).
Therefore, SCOR modern provides a rapid modeling approach for supply chain, is the tool of the design and reinvention of supply chain, is the pattern of combing the enterprise strategic goal and performance index of supply chain. Moreover, SCOR modern is the tool for the enterprises to learn the supply chain management. In all over the word, there are enterprises have implemented this modern successfully, and more and more organizations are adopting SCOR modern to improve their supply chain. Therefore, SCOR is alone enough to address supply chain challenges.