Case Study

EXPRESSPOINT ADOPTS THE SCOR MODEL

FOR STRATEGIC SUPPLY CHAIN PROGRESS

APICS Supply Chain Council GOALS

Advance supply chain performance
Supply Chain Operations Maximize profitability
Reference (SCOR) model Drive business growth
equalizes client requirements Obtain consistent execution on deliverables
and fiscal goals. Streamline organizational processes

APPROACH
Apply foundational strategies and techniques
from the SCOR model
Gain support from stakeholders
Define the project and its objectives
Analyze metric and process performance
Develop a project portfolio
Implement plans

RESULTS
Enhanced understanding of the end-to-end supply
chain and its segments
Implemented a formal sales and operations
planning strategy
Integrated supply chain processes with the budget
cycle and financial statements
Improved perfect line fulfillment
Created a more flexible and responsive supply chain
Refined metrics for greater visibility
Reduced cost to serve
Driving Meaningful Change ExpressPoint executives devised a three-year strategy to drive
ExpressPoint is a provider of multi-vendor depot repair and supply phased changes, balancing industry cost, service, quality, and
chain solutions for large original equipment manufacturers, field reporting standards. They selected the Supply Chain Operations
service providers, and third-party logistics providers. Offerings Reference (SCOR) model and the supplemental Supply Chain
include planning and forecasting; sourcing, procurement, and Excellence: A Handbook for Dramatic Improvement Using the
stocking; reverse logistics; and repair and refurbishing of spare SCOR Model by Peter Bolstorff and Robert Rosenbaum to guide
parts and subsystems for computers, telecommunications their work. Using a case study approach, Supply Chain Excellence
equipment, printers and components, and home-theater explains how to effectively use SCOR to identify a strategic
electronics. Each year, the organization delivers 1.6 million global roadmap to improved supply chain competitive performance.
shipments, with fill rates of 98 percent or higher, from its ISO
9001:2008-certified facilities in the United States and Mexico. These tools were chosen because they demonstrate a
proven approach, says Kelly Dudek, chief operating officer.
The ExpressPoint leadership team knows that collaboration, In addition, they teach employees to carry out day-to-day
continuous improvement, and ease of doing business are principles, the technique demands team ownership, and SCOR
essential to delighting their customers. Key business goals is a cross-industry standard. She says she and her colleagues
are on-time delivery, high-quality products and services that also valued the fact that the models format is similar to that
bring about improved asset use and field force effectiveness, of the six sigma master black belt and is consistent with their
and low total cost. In order to deliver on these objectives, investment in lean and six sigma.
company leaders recognized that they needed to strategically
analyze and optimize the supply chain. The areas identified SCOR unites into a single framework essential supply chain
included planning and scheduling, repair processes, sourcing, and operations management elements. As Buttner puts it,
engineering, and make and deliver processes. The model combines business processes, metrics, leading
practices, and people into one structure, adding that the
The organization structure had become disjointed, explains tools are the state-of-the-art industry standards.
Susan Buttner, ExpressPoint director of finance. Through
employee attrition, responsibilities were assigned to others Under SCOR, supply chain and operations management are
who lacked expertise with supply chain strategy. Departments defined as the integrated processes of plan, source, make, deliver,
became siloed and vertical-thinking, focusing on their specific and returnfrom the suppliers supplier to the customers
tasks rather than the holistic, end-to-end supply chain. customer. (See Figure 1.)

Figure 1
SCOR level-one processes

Plan

Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source

Return Return Return Return Return Return

Return Return
Suppliers Supplier Your company Customer Customers
supplier customer

Internal or external Internal or external

SCOR Framework

1 APICS Supply Chain Council Case Study: ExpressPoint

SCOR level-one metrics are sorted into five performance The main concept behind SCOR is to analyze a representative
attributes; the first three focus on customers, the last two on supply chain deeply and then leverage improvements across
internal performance. There are three levels of decomposition, other networksremembering to think big, act small, and scale
including more than 250 diagnostic measures. (See Figure 2.) fast. As such, the first step for ExpressPoint was to define the
supply chains in its organization, keeping in mind that a supply
Figure 2
chain is a combination of product, customer, and geography.
SCOR level-one metrics Team members began defining their supply chains by type of
service and account. They soon realized that all types of services
Attribute SCOR 11.0 Metric
were provided to each account. Next, the various scenarios were
Reliability RL 1.1 Perfect order fulfillment
sorted using revenue, volume, stockkeeping unit complexity,
Responsiveness RS 1.1 Order fulfillment cycle time and inventory data. Ultimately, it was concluded that all services
Agility AG 1.1 Upside supply chain flexibility provided to the retail, manufacturer, and custom key accounts
AG 1.2 Supply chain upside adaptability were important to business objectives.
AG 1.3 Downside supply chain
adaptability Using the SCOR metric definitions as a guide, ExpressPoint team
AG 1.4 Overall value at risk members defined their scorecard, collected a sample data set,
and determined baseline data over a fiscal year. Lean and six
Cost CO 1.1 Total cost to serve
sigma training was used to define and analyze metric failures,
Asset AM 1.1 Cash-to-cash cycle time
which then uncovered the defects that caused the metrics to fail.
management AM 1.2 Return on supply chain fixed Meanwhile, SCORmarka benchmark surveywas completed
efficiency assets in order to provide a statistical comparison of ExpressPoint to
similar businesses. Lastly, consensus was achieved between the
Importantly, the SCOR implementation roadmap follows five project and steering teams as to the desired level of performance
steps. These are as follows: for each attribute. The agreed-upon caveat was that the team
1. Build organization support. Here, the major deliverables are would prioritize one attribute with an advantage target, one
sponsor and stakeholder support and education. A common attribute with a superior target, and the remaining attributes
challenge is finding the tipping point for change. with parity targets.
2. Define the project. In this step, the objectives are to create a
business context summary, a definition of the supply chain, and The gap between actual and target sets the stage for the
the project scope and charter. The planning and organizing of the following project phases while defining process improvements,
supply chain excellence initiative is a key issue to address. Dudek explains.
3. Analyze performance. This phase entails applying a scorecard
and defect and process analysis. In addition, defining the metric Next, ExpressPoint professionals created a SCOR process
and process performance gap is important. maturity map that rated and summarized activities as broken
4. Develop the project portfolio. In addition to the portfolio, the or missing, in need of improvement, or working effectively.
implementation priority and a project list must be set. This illustrative analysis enabled the identification of strategic
5. Implement the project. In this final phase, the focus is on process steps, system transactions, business rules, and
the development, pilot, and implementation of the portfolio significant disconnects. In the end, the team concluded that
projectand attaining desired results without unnecessary risk. company planning processes and system capabilities were not
integratedand many were broken or missing. It also became
The five steps in action evident that the sales and operations planning (S&OP) process
Dudek says she and her colleagues knew that a successful project did not align the business plan with long-term operational,
would demand commitment by all stakeholders. Getting this sales, and financial strategies. The tactical planning processes
buy-in was going to be a principal predictor of implementation were likewise disconnected from S&OP, as well as customer
success, she adds. The greatest challenge ExpressPoint faced order plans, plant master production plans, and supplier risks
along the way involved gaining both vertical and horizontal over the near term horizon.
organizational alignment. Therefore, they focused on four key
resources: an executive sponsor, a steering team to review and Having completed the metric and process performance
approve recommendations, a project leader and team, and a analysis, desired improvements were grouped into logical
design team to analyze and recommend improvements. projects and prioritized based on the benefits identified in

APICS Supply Chain Council Case Study: ExpressPoint 2

the scorecard. The project team performed interviews and and have completed the budget cycle for 2015, integrating
evaluated the 30-plus SCOR level-three processes identifying the process with the financial statements.
gaps, Buttner says. These disconnects were collated and
weighted, aligning to a metric and strategic similarity. From We have been able to improve our performance attribute of
this exercise, the projects were identified with an assumption perfect line fulfillment and have reduced our cost to serve,
of impact to the company. she says. Furthermore, we continue to evolve upside supply
chain flexibility and rough-cut capacity planning.
The science behind this benefit calculation is to relate each
failure in the metric defect analysis to a SCOR process element. The SCOR model helped us better understand
As processes are grouped, an understanding of the underlying our supply chain and the competitive requirements.
issues will emerge and strengthen potential advantages.
Refining our metrics gives us increased visibility
The ExpressPoint team ultimately identified six projects.
and helps balance our customers requirements
Two were prioritized for the initial wave of implementation: with our financial objectives.
first, integrated supply chain planningthe scope of which Susan Buttner, Director of Finance, ExpressPoint
included collaborative distribution requirements planning,
master product scheduling, and S&OP. The objectives for this Dudek says her companys experience demonstrates a highly
project were to heighten perfect line delivery, cut expenses, successful adoption of the SCOR model and the essential
and increase inventory turns. Second, ExpressPoint aimed to three ingredients for success: organizational support that
target new repair and revenue opportunities. starts at the top, a platform upon which SCOR can generate
improvements, and a commitment from team members to
The subsequent four projects included improving source process learn and apply the right metrics and processes.
effectiveness, driving innovative engineering solutions to reduce
material cost, and advancing both the make and deliver processes. Buttner agrees, adding that its important to be committed to
the change and appreciate that culture shift is a journey. It will
Today, ExpressPoint is benefiting from a greater understanding mature and evolve over time, she says. Ultimately, an efficient
of the end-to-end supply chainfrom its suppliers to supply chain becomes the heartbeat of a company.
its customers customers. The SCOR model helped us
better understand our supply chain and the competitive
requirements, Buttner says. Refining our metrics gives
us increased visibility and helps balance our customers
requirements with our financial objectives.

She adds that a formalized S&OP strategy was achieved, and

its maturity level has been benchmarked. In addition, team
members are working through the supply chain horizontally

About APICS Supply Chain Council About the Supply Chain Operations Reference (SCOR)
This report was developed by APICS Supply Chain Council The Supply Chain Operations Reference (SCOR) model is
(APICS SCC), an organization that advances supply chain and a framework that enables users to address, improve, and
operations management and innovation through research, communicate supply chain management practices. SCOR is a
education, and publications. APICS SCC maintains the Supply management tool and a reference model for end-to-end supply
Chain Operations Reference (SCOR) model, the supply chain chain management. Organizations that use SCOR are consistent
management communitys most widely accepted framework top performers in their industries, have grown in aggregate share
for evaluating and comparing supply chain activities and value two-to-three-times faster than the Dow Jones and S&P 500
performance. For more information, visit apicsscc.org. indexes, and have reaped significant cost savings and economic
return on SCOR-related investments. The SCOR Framework is
available only to APICS SCC members, affiliates, and sponsors.
Contact APICS SCC to learn more.