The Supply Chain Council is a Nonprofit Organization

531 Words Jan 25th, 2018 2 Pages
One of their structures is the Supply Chain Operations Reference (SCOR). According to the supply chain council “The SCOR Framework is the basis for all supply chain management were the metrics in SCOR provide a solid foundation for measuring performance and identifying priorities, the processes are the common language in your supply chain operations”1.

As defined by the supply council, “The Deliver processes describe the activities associated with the creation, maintenance, and fulfillment of customer orders. It includes the receipt, validation, and creation of customer orders; scheduling order delivery; pick, pack, and shipment; and invoicing the customer.”1
Many concepts go into what makes the Deliver process in the SCOR model. For one, we have to look at what is called risk pooling. Risk pooling, is important due to it helps companies meet demand uncertainty. For that reason, risk pooling is a very important concept to the supply chain, which is why it is widely used. The reason is if companies aggregate the demands across many locations, then they can lower the safety stock and inventory due to the reduction in variability. To do so, companies create a mathematical framework in order to multipurpose. Also looking into different aspects and perceptions in order to understand current risk…
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