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The Supply Chain Council (SCC) and its SCOR Model have been integral in the development of supply chain excellence. The SCOR model stands for “Supply Chain Operational Reference”, and provides a framework for companies to use when assessing their own supply chain processes (Towill, 2019). It is designed to help organizations improve their supply chains from end-to-end through enhancing performance metrics such as cost, customer service and asset utilization (Towill, 2019; O’Leary & Rogers 2010). The five functions shared by most supply chains as defined by the SCC are Plan, Source, Make/Manufacture, Deliver/Distribute and Return. All these functions need to be managed in order for an effective supply chain.

The Planning function encompasses understanding customer demand requirements and forecasting future product needs. Activities within this function include developing strategies related to overall market positioning, investments in capacity or new products as well as inventory planning decisions based on expected demand levels (O’Leary & Rogers 2010). This is key to ensuring that customers can receive the right amount of product at the right time with minimal inventory costs or delays.

The Sourcing process involves selecting suppliers who can provide quality raw materials at competitive prices that meets both organizational goals and expectations of external customers (O’Leary & Rogers 2010). This includes evaluating supplier capabilities including price per unit cost structure while taking into account lead times which affect production schedules and delivery dates. As part of this assessment it is important to consider alternative sourcing possibilities due to potential disruptions caused by natural disasters or geopolitical unrest.

The Make/Manufacturing stage refers to activities that involve transforming raw materials into finished goods through either large scale capital intensive operations or smaller batch processing units used in industries such as food production where freshness matters (O’Leary & Rogers 2010). In addition it includes quality control measures which protect against defective products reaching customers further down the line. Efficiency considerations here should also focus on reducing waste associated with overproduction or underutilized resources while improving cycle times resulting from activities such as setup changes typically involved during manufacturing processes .

Delivery/Distribution covers activities related transporting products from manufactures locations towards points of consumption like warehouses where they may be stored before being shipped out online orders arrive on store shelves just-in-time for pickup by shoppers(O’Leary & Rogers 2010). Effective management strategies revolve around minimizing total transportation costs balancing between multiple shipping options available including trucking , airfreight rail freight even sea vessels all depending on how urgently shipments must reach destinations .

The final area covered is Returns meaning any product sent back from customers due either a warranty claim faulty merchandise item not longer wanted purchased wrong size etcetera . Companies must ensure appropriate tracking systems are implemented enable accurate assessments returns data performance analysis prevent fraudulent behavior lower overall return rates improve customer satisfaction increase loyalty repeat business opportunities long run .

Not every supply chain contains all five functions outlined above some may lack certain stages depending on specific industry context example industrial parts manufacturer likely utilize source make deliver components directly manufacturers concerning consumer focused firms will incorporate returns portion into equation due nature retail environment they operate within other cases there lot customization unique fit organization ‘s particular situation thus varies based what company doing who dealing with type transaction made so forth however majority do encompass common processes laid out SCOR model leading improved execution coordination collaboration along value stream result increased profitability better resource utilization higher levels customer service satisfaction bottom line .


O’ Leary D T Jr., & Rogers D S.(2010). An introduction to logistics Systems Management 4th edn.. Chichester UK: John Wiley Sons Ltd

Towill DR.(2019) UnderstandingSCOR: Simplifying Supply Chains One Step At A Time White Paper Retrieved July 3 2020 http://understandingscorblogsitecomwpcontentuploads201110Understanding_SCOR_WhitePaperpdf

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