Question

1. What is the difference between the supply chain and supply chain management?

2. What are the elements of the SCOR model?

Answer 1

1. A supply chain is a system of moving products or services from supplier to customer through a network of organizations, people, information, and resources. The activities of supply chain include everything from sourcing to manufacturing and delivery of the end product. Supply Chain Management (SCM) on the other hand, is the oversight and management of materials, information and finances as they move through processes in a supply chain. SCM involves co-ordination among various entities involved in these exchanges and aims at their smooth operations as well as continuous improvement of these processes

2. Elements of SCOR model

SCOR is modelled around business activities involved in delivering products/services to customers with satisfaction.. There are six key management processes

Plan

It includes demand and supply planning and management, balancing resources with requirements , determining communication , business rules to improve and measure supply chain efficiency.

Source -sourcing infrastructure and material acquisition, management of inventory and supplier network, supplier agreements, and supplier performance.

Make - Manufacturing and production including production activities such as processing, packaging, staging product, and releasing. It also includes management of the production network, equipment and facilities, and transportation

Deliver –This includes processes such as order management, warehousing, and transportation management of finished inventories, assets, transportation, product life cycles, and importing and exporting requirements

Return – This involves the process of returning products by customers.