Analysis of SCOR’s approach to supply chain risk management

Abstract

Purpose – SCOR 10.0, released in late 2010, is the second version of the supply chain operations reference model (SCOR) to incorporate risk management processes, metrics and best practices. Given the paucity of studies that have explored the coverage and integration of supply chain risk management (SCRM) within SCOR, the analysis and suggested improvements for SCRM are designed to enhance SCOR’s collaborative and coordinated management of supply chain (SC) risks. The paper aims to dicsuss these issues. Design/methodology/approach – Critical analysis was used to analyse the coverage and integration of SCRM within SCOR 10.0. Findings – Discrepancies were identified in how SCRM has been incorporated into SCOR, including issues with the hierarchical representation of SCRM processes, metrics, best practices and skills. These may potentially propagate into difficulties in embedding risk management processes within other SC processes, visualizing risk metrics in a SC’s value hierarchy and reconciling SCOR’s SCRM with organizational enterprise risk management. Research limitations/implications – This paper is limited to theoretical analysis of the coverage and integration of risk in SCOR 10.0. Once the issues identified are remedied, the subsequent suggested improvements require validation through empirical testing. Originality/value – Despite SCOR’s wide acceptance as a reference model in managing SC operations, there has been no investigation of its approach to SCRM. The analysis addresses this lack of prior investigation by analysing SCRM in the latest version, SCOR 10.0. The paper identifies deficiencies and suggests amendments regarding SCRM’s coverage and integration of SCRM.

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