The SCOR Model is one of the most promising models for strategic decision-making. It has divided business into multiple processes, resulting in a management environment that is always engaged. It assists businesses in improving operations at both the macro and micro levels.
The top, configuration, and process elements of supply chain management are defined by the model are:
(i) Plan: Controlling inventory and production operations requires meticulous planning. Companies are constantly attempting to align supply with aggregate demand by building a strategy based on analytics. The term 'Source' refers to the process of obtaining what has been planned. 'Make' is the process of planning what is sufficient for production, and 'Deliver' is the process of achieving significant service Plan levels by delivering on schedule and within the specified lead time. To avoid the Bullwhip effect, it's also a good idea to keep an eye on demand changes throughout the value chain. Firms, for example, use analytical tools to forecast market demand and use material planning systems like Material Requirement Planning to plan the required raw materials (in SAP ERP system) Supply chain managers must plan ahead to satisfy client demands. Forecasting demand, designing the supply chain intentionally, and deciding how the organisation will measure the supply chain to ensure it is performing as expected in terms of efficiency, delivering value to customers, and assisting in the achievement of organisational goals are all examples of this.
(ii) Source: Sourcing is the process of discovering vendors who will procure goods and services in the most cost-effective and efficient manner to meet planned/actual demand. Suppliers must meet specific requirements in order for the company to deliver high-quality goods to the customer. Perishable and non-perishable products can both be sourced.
(iii) Location: Another crucial aspect of supply chain management is assisting with direct and indirect consumer integration. It has made a substantial contribution to the firm's brand image. Consumers' expectations for finished goods and services must be met through the company's delivery channels and logistics services. The company uses a variety of freight modes, including road, air, and rail, to ensure a seamless delivery.