Essay about The Deliver Process Of The Scor Model

Essay about The Deliver Process Of The Scor Model

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Steve Schoenbeck
Memo # 5: Deliver

The deliver process of the SCOR model is a very important part of how business operates. While the delivery process does include the physical delivery itself, there are several more aspects that it also includes. Without the deliver process being handled properly, the way business operates would be extremely inefficient, and would progress much slower.
One problem anyone is going to have in just about any industry is the amount of inventory to keep at warehouses. If there is too much inventory, then high costs will become a problem and hurt your bottom line. At the other end, if you try to save too much money by keeping inventories dangerously low, it may create stock-outs. These can infuriate your clients to the point of taking their business elsewhere. There are many different strategies, according to one of them is called Multi-Echelon inventory optimization. The basic concept is to look at all of your warehouses as a whole, whether it is right next to the end user or a large central corporate warehouse. It also suggests using a system that will factor in things like housing costs and sales projections. Most supply chains will have larger warehouses that will eventually ship goods to their smaller warehouse counterparts. One might think that having one side of the chain loaded with inventory could make a great reactive or conservative supply chain respectively. However it is extremely important to have just enough inventory while not wasting too much money on excess inventory.
To go along with the theme of saving money while at the same time not having stock-outs, one thing that needs to be kept in mind in fluctuations of demand. Just like anything in life, there are going to...

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.... Companies in the auto industry are huge users of this technique. In an industry such as cars where people can get several different options in their car, it would be just ridiculous to make all of the differences up front during production.
The actually logistics within the delivery process can be confusing, but there are several options such as outside sources and in-house shipping coordinators. While both have ups and downs such as price difference and reliability, a good amount of research is crucial before executing anything.
The delivery process in the SCOR Model is a very interesting combination of inventory management and logistics. There are several different tools that can be used to help deal with the madness. While some can be expensive and intensive, it is important to always be looking towards the future to improve your supply chain.

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