Introduction to GreenSCOR

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Introduction to GreenSCOR

• Introducing Environmental Considerations to the
  SCOR Model

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Supply Chain Operations Reference Model (SCOR)
The Primary Use of SCOR

• The Primary Use of SCOR
• To describe, measure and evaluate supply chain
  configurations.
• SCOR contains
• Standard descriptions of management processes
• A framework of relationships among the standard
  processes
• Standard metrics to measure process performance
• Management practices that produce best-in-class
  performance
• Enables the companies to
• Evaluate and compare their performances with
  other companies effectively
• Identify and pursue specific competitive
  advantages
• Identify software tools best suited to their
  specific process requirements

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Supply Chain Operations Reference Model (SCOR)

• SCOR
• Integrates Business Process Reengineering,
  Benchmarking, and Process Measurement into a
  cross-functional framework.

Quantify the operational performance of
similar companies and establish internal targets
based on best-in-class results
Characterize the management practices and
software solutions that result in best-in-class
performance

Capture the as-is state of a process and
derive the desired to-be future state
Capture the as-is state of a process and derive
the desired to-be future state
Quantify the operational performance of similar
companies and establish internal targets based on
best-in-class results
Characterize the management practices and
software solutions that result in best-in-class
performance
Benchmarking
Best Practices Analysis
Process Reference Model
Business Process Reengineering
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Supply Chain Operations Reference Model
(SCOR)Basic Management Processes

• Plan-Source-Make-Deliver-Return

Plan
Deliver
Source
Make
Make
Deliver
Make
Source
Deliver
Source
Deliver
Source
Return
Return
Return
Return
Return
Return
SuppliersSupplier
Customers Customer
Customer (Internal or External)
Supplier (Internal or External)
Your Company
Plan-Source-Make-Deliver-Return provide the
organizational structure of the SCOR-model
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Scopes of Basic Management Processes

• Plan (Processes that balance aggregate demand and
  supply to develop a course of action which best
  meets sourcing, production and delivery
  requirements)
• Balance resources with requirements
• Establish/communicate plans for the whole supply
  chain
• Source (Processes that procure goods and services
  to meet planned or
• actual demand)
• Schedule deliveries (receive, verify, transfer)
• Make (Processes that transform product to a
  finished state to meet planned or actual demand)
• Schedule production
• Deliver (Processes that provide finished goods
  and services to meet planned or actual demand,
  typically including order management,
  transportation management, and distribution
  management)
• Warehouse management from receiving and picking
  product to load and ship product.
• Return (Processes associated with returning or
  receiving returned products)
• Manage Return business rules

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Three Levels of Process Detail
Supply Chain Operations Reference Model
Companies implement specific supply-chain
management practices at this level. Level 4
defines practices to achieve competitive
advantage and to adapt to changing business
conditions.
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Level Metrics Facts

• Level 1 Metrics are primary, high level measures
  that may cross multiple SCOR processes.
• They do not necessarily relate to a SCOR Level 1
  process (Plan-Source-Make-Deliver-Return).
• There is hierarchy among the metrics in different
  levels.
• Level 1 Metrics are created from lower level
  calculations (Level 2 metrics)
• Level 2 Metrics
• Associated with a narrower subset of processes.
• Example
• Metric related with Delivery Performance Total
  number of products delivered on time and in full
  based on a commit date.
• Metric related with Production Ratio Of Actual
  To Theoretical Cycle Time

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Level 2 Process Categories

• P1 Plan Supply Chain
• P2-P5 Plan SCOR Process
• S1 Source Stocked Product
• S3 Source Engineer-to-Order Product
• S2 Source Make-to-Order Product
• M1 Make-to-Stock
• M2 Make-to-Order
• M3 Engineer-to-Order
• D1 Deliver Stocked Product
• D2 Deliver Make-to-Order Product
• D3 Deliver Engineer-to-Order Product
• D4 Deliver Retail Product (New in Version 6.0)
• SR1/DR1 Return Defective Product (Source
  Return/Deliver Return)
• SR2 Source Return MRO Product (Maintenance,
  Repair and Overhaul)
• DR2 Deliver Return MRO Product
• SR3/DR3 Return Excess Product (Source
  Return/Deliver Return)
• EP, ES, EM, ED, ER Enable corresponding SCOR
  Processes

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Some Graphical Tools

• 1st Step in configuring a SC Illustrate
  physical layout, material flow and place Level 2
  execution process categories to describe
  activities at each location.

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SCOR Process Maps

• 2nd Step Create the SCOR Process Maps Place
  planning process categories, using dashed lines
  to show links with execution processes

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Software Package for Modeling SCOR ARIS EasySCOR

• The ARIS Toolset and ARIS Easy Design are process
  modeling tools. The ARIS Toolset is a BPR tool,
  Easy Design is used for process capture.
• The EasySCOR Modeler is a software package that
  includes the ARIS Easy Design modeling kit and
  the SCOR model in ARIS format.
• ARIS EasySCOR consists of process models that
  describe the SCOR levels 1 to 3. Implementation
  level, level 4 is not included.

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The SCC has introduced environmental management
elements into SCOR 9.0.

• Environmental management is a growing concern in
  industry.
• Specifically, the green supply chain
• SCC leveraged previous research to introduce
  green into SCOR
• Processes
• Best Practices
• Metrics
• As a proven Supply Chain Management model, SCOR
  is ideal as a Green Supply Chain tool.

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Green SCM integrates environmental and supply
chain management.
Green Supply Chain Management
Supply ChainManagement
EnvironmentalManagement
Green Supply Chain Management

• Green SCM recognizes the disproportionate
  environmental impact of supply chain processes in
  an organization.

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Green SCM leverages the role of the environment
in SC value creation.
Environmental Value Drivers
Tangible Outcomes
Green Supply Chain Programs
Profitability
Supply Chain Value
Asset Utilization
Service Level
Employee Satisfaction
Customer
Stakeholder Interests
Environmental Sustainability
Reputation
Continuity
Community Quality of Life
Alliances
Technology
Intangible Value Drivers
Source Forging New Links, GEMI, 2004
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The product life cycle is the basis of green
supply chain management.
Supply Chain in the Environmental Life Cycle
Design
RawMaterialExtraction
Retail/ConsumerUse
Concept
Transport
Manufacture
Transport
Transport
Disposal
Typical Supply Chain Scope
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Now, GSC programs are moving from compliance to
value creation.
Environmental, Safety, and Health Business
Contributions
Traditional Cost Avoidance
Emerging Value Creation
Source Forging New Links, GEMI, 2004
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GreenSCOR was created to add environmental
considerations to SCOR.

• 2002ADUSD LMR (SCI) created GreenSCOR to
  understand the relationship between environmental
  and supply chain management.
• 2002-2007Greater community saw value of the
  approach
• GreenSCOR won the SCC 2003 Award for Academic
  Excellence
• 2008GreenSCOR elements added into SCOR 9.0 as
  integral part of model.

ADUSD LMR (SCI) Assistant Deputy Under
Secretary of Defense, Logistics and Materiel
Readiness, Supply Chain Integration
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GreenSCOR is a modification of the SCOR model
that includes environmental elements.
GreenSCOR Development
GreenSCOR modifies the existing SCOR structure to
include environmental processes, metrics, and
best practices.
GreenSCOR maintains the integrity of the current
SCOR model by adding to the existing elements.
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GreenSCOR focuses on the impacts of SCM in each
stage of the product life cycle.
GreenSCOR Concept
Stage
RawMaterialExtraction
Retail/ConsumerUse
Manufacture
Disposal
P
P
P
P
Green- SCOR Mapping
S
D
S
M
S
D
S
D
D
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GreenSCOR, integrated with SCOR 9.0, adds Best
Practices, Metrics, and Processes to SCOR.

• Best Practices to green the supply chain
  (examples)
• Collaborate with partners on environmental issues
• Minimize fuel/energy consumption
• Minimize and reuse packaging materials
• Metrics to measure the effects of greening
  (examples)
• Carbon and Environmental Footprint (proposed)
• Energy Costs
• Units per Shipment
• Processes to capture waste management
• M1.7, M2.7, M3.8Waste Disposal

EMSEnvironmental Management System
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Environmental Best Practices were added
throughout SCOR
Example Environmental Best Practices
Plan Supply Chain partners collaborate on environmental issues Plans created to minimize energy use
Source Select vendors with EMS system in place Establish environmental partnerships with suppliers
Make Schedule peak production for of-peak energy demand times Minimize packaging material
Deliver Route to minimize fuel consumption Retrieve packaging material for re-use
Return Do not physically return product beyond economic repair Take back product for recycling
Enable Implement an EMS and track environmental performance Maintain equipment for fuel/energy efficiency
EMSEnvironmental Management System
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Environmental metrics were added throughout SCOR
Example Environmental Metrics
Plan Compliance costs Emissions cost per unit
Source of orders receives with correct packaging of suppliers with current EMS system
Make Energy costs as a per cent of production costs Waste produced as per cent of product produced
Deliver Fuel costs as per cent of Deliver costs of carriers meeting environmental criteria
Return Products returned as percent of products delivered Return products disposed of vs. remanufactured
Enable Facility energy costs as per cent of total costs Down time due to non-compliance issues
EMSEnvironmental Management System
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Proposed environmental footprint metrics leverage
SCOR for environmental accounting.

• Environmental accounting is a current business
  concern.
• Carbon and greenhouse gas emissions
• Other environmental impacts
• Currently, there is not an agreed upon framework
  for measuring the environmental footprint of the
  supply chain.
• SCOR provides a framework for defining the supply
  chain network and measuring the environmental
  impacts.

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Environmental footprint measurement is five
metrics repeated at all three SCOR levels.
Proposed Environmental Footprint Metrics
Metric Units Basis
Carbon Emissions Tons CO2 Equivalent This is the unit of measure currently used for green house gas emissions and is a measure of the climate impact from CO2 and other global warming air emissions.
Air Pollutant Emissions Tons or kg This would include emissions of major air pollutants (COx, NOx, SOx, Volatile Organics (VOC) and Particulate). These are the major emissions that EPA tracks.
Liquid Waste Generated Tons or kg This includes liquid waste that is either disposed of or released to open water or sewer systems (these emissions are generally listed on water emissions permits).
Solid Waste Generated Tons or kg The total solid waste generated by the process.
Recycled waste Per cent The per cent of the solid and liquid waste that is recycled.
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Environmental footprint metrics are summed across
SCOR levels, like the existing Cost metrics.
Proposed Environmental Footprint Hierarchy
Total Carbon Footprint AirLiquidSolid-
RecycTotal Environmental Footprint
Level 1
Tier 3
Tier 2
Tier 1
Your Company
Customer
M1
M1
S1
D1
S1
D1
D1
S1
M2
D2
S2
Level 2
M1
M1
S1
D1
S1
D1
Carbon Air Liquid Solid Recyc
Level 3
Carbon Air Liquid Solid Recyc
Carbon Air Liquid Solid Recyc
Carbon Air Liquid Solid Recyc
Carbon Air Liquid Solid Recyc
Carbon Air Liquid Solid Recyc
Carbon Air Liquid Solid Recyc
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A Waste Disposal process was added to make to
capture waste management
M1 Make-to-Stock
M1.1
M1.2
M1.3
M1.4
M1.5
M1.6
Schedule Production Activities
Issue Product
Produce and Test
Package
Stage Product
Release Product to Deliver
M1.7
Waste Disposal
Activities associated with collecting and
managing waste produced during the produce and
test process including scrap material and
non-conforming product.
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Green additions make SCOR a tool for managing
environmental impacts of the supply chain.

• Processes to define the scope of supply chain
  operations and supply chain roles.
• Metrics for assessing and benchmarking the total
  environmental footprint of the supply chain.
• Best Practices for reducing the environmental
  footprint of the supply chain.

The GreenSCOR framework is a tool for structuring
and communicating environmental supply chain
management programs to get faster, repeatable,
collaborative results
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Questions?
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