SEARCH APPROACH FOR OPTIMAL REFERENCE VALUES FOR SCOR INDICATORS SEARCH APPROACH FOR OPTIMAL REFERENCE VALUES FOR SCOR INDICATORS

Abstract

This paper proposes a decision strategy related to the use of SCOR (Supply Chain Operations Reference Model) indicators in an organization, now a very common tool for conducting external or exogenous benchmarking by comparing the company’s SCOR values with those of industry leaders. We propose instead an internal or endogenous benchmarking comparing the SCOR values with optimal values for the same company using a mathematical optimization process for the firm. Starting with the case of indicators associated with supplier operations, we highlight the usefulness of endogenous comparison where differences between the optimal and actual SCOR values show some gaps which effectively lead to paths for improvement. These paths may include the need to review lower-level SCOR indicators based on the analysis of the upper SCOR level. Given the focus on optimization, these improvement proposals consider the best use of available resources in the company without additional investment.