On February 2, 2012, the School of Business’s MBA program hosted an academic event in cooperation with the Supply Chain Council (SCC). Joseph Francis, executive director of the SCC, was the event’s guest speaker. He delivered a presentation titled “SCOR: Business Process Modeling for Effective Supply Chain Management and Benchmarking.”
Francis started by discussing the importance of supply chain management, how it can be used as a competitive advantage and the direct link between a well-managed supply chain and the bottom line. “Supply chain controls trillions of dollars in the economy,” Francis explained, adding that the importance of this profession is not emphasized enough. As such, supply chain is the core competency of generated profits attained by any given company and/or organization, and is a major determinant and motivator for a successful company.
Francis discussed how some of the operational key performance indicators (KPIs) tie nicely with financial key performance indicators. He stressed on the implications of supply chain on business financial performances and tackled the issues of effective supply chain management and benchmarking. “Revenue is highly dependent on the supply chain management function, not solely on revenues solicited from an organization’s sales,” Francis said. He elaborated that supply chain management deals with real-life, hard-pressing issues such as the collapse of capital, risk management, health hazards and global markets, as opposed to sales people who seldom deal with these huge global networks. All the aforementioned attributes should be “seen as a priority,” according to Francis, to ensure sustainability and leverage costs versus a company’s growth. Being the backbone of a business and hence the overall economy, a major perceived issue is the lack of recognition and acknowledgement awarded to supply chain managers.
He then introduced Supply Chain Operations Reference Model (SCOR), an industry standard for supply chain process mapping, with detailed KPIs, and how it can be used for managing the supply chain, and most importantly, for benchmarking any supply chain performance against the best. “SCOR drives the metrics and helps you understand how to use the metrics to leverage your performance,” Francis said. Furthermore, supply chain acts as a basis and caters to determining the return of a company’s net worth.
He concluded the presentation by introducing two certifications that are offered for SCOR: one tailored for professionals (SCOR-P) and the other for students (SOCR-S)