Supply Chain Management (SCM) is the integration of information, technologies and management of key business functions which is linked directly or indirectly and provides services to the same customer. It promotes the flow of products downstream from raw materials to the end consumer and the flow of information upstream from consumer to supplier .
In above figure it explains that raw materials is procured and then it goes to the supplier for processing of raw material, suppliers supplies the processed raw materials to the manufactures, producers transform these raw material into finished goods, distributors delivers finished goods, packed materials to customers or retailers and retailers sell that product to consumers.
Supply chain management was introduced due to inability of the organizations to understand the entire string of activities that governed the delivery of the product to the final customer. Previously companies were too restricted in their outlook and were concerned only with activities within their own boundaries. In essence, supply chain management integrates supply and demand management within and across companies. SCM ensures higher efficiency of modern businesses, by coordinating and synchronizing various organizations in the supply chain . There are a variety of supply chain models, which address both the upstream and downstream sides. The SCOR (Supply-Chain Operations Reference) model. This literature review gives a brief description of the SCOR model.
2.1. THE SUPPLY CHAIN COUNCIL
Supply Chain Council (SCC) is a global nonprofit organization (NGO) whose framework, improvement methodology, training, certification and benchmarking tools help member organizations make dramatic, rapid, and sustainable improvements in supply chain performance. The Supply Chain Council was formed in 1996 by Pittiglio Rabin Todd & McGrath (PRTM), a management consulting firm and AMR Research and initially included a consortium of 69 voluntary member companies. Its mission today is to perpetuate the uses of the SCOR model through technical development, research, education and conference events .
SCOR is a management tool, spanning from the supplier's supplier to the customer's customer . The Supply Chain Operations Reference (SCOR) is a business process reference model which was developed by the supply chain council (SCC).
“The SCOR model is the only supply chain
framework that we found that links performance
measures, best practices, and software requirements
to a detailed business process model”
—Logistics Management Institute June 1999
The SCOR-model captures the council’s general view of supply chain management. While much of the underlying content of the model has been used by practitioners for many years, the SCOR-model provides a unique framework that links business process, metrics, best practices and technology features into a unified structure to support communication among...