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he Supply Chain Operations Reference (SCOR) model has been widely adopted in many companies. Anecdotal evidence and trade
journals have reported signicant improvements after rms have adopted the SCOR model. Although practitioners have been
enthusiastic about implementing and using the SCOR model in their operations, the SCOR model has not been empirically validated.
The purpose of this study is to empirically validate the SCOR model (i.e., test the structure of the SCOR model). Data from 125 North
American manufacturing rms were collected. The results show that the relationships among the supply chain processes in the SCOR
model are generally supported. The Plan process has signicant positive inuence on the Source, Make, and Deliver processes. The
Source process has signicant positive inuence on the Make process and the Make process has signicant positive inuence on the
Deliver process. The Source process mediates the impact of the Plan process on the Make process and the Make process mediates the
impact of the Plan process on the Deliver process. The ndings provide managers with empirical evidence that the SCOR model is in
fact valid.
Keywords: Supply Chain Operations Reference (SCOR) model; supply chain management; business strategy
INTRODUCTION
The Supply Chain Operations Reference (SCOR) model was
developed by the Supply Chain Council in 1996. The SCOR
model focuses on the supply chain management function
from an operational process perspective and includes customer interactions, physical transactions, and market interactions. In the past decade, the SCOR model has been widely
adopted by many companies including Intel, General Electric
(GE), Airbus, DuPont, and IBM. According to the Supply
Chain Councils (2010) website, While remarkably simple, it
[the SCOR model] has proven to be a powerful and robust
tool set for describing, analyzing, and improving the supply
chain. In the literature, several recent studies have reviewed
the SCOR model (Huang et al. 2004, 2005). Many other
studies (McCormack 1998; Lockamy and McCormack 2004;
Supply Chain Council 2010) have attempted to measure the
SCOR models impact on business performance. Trade journals have also reported the benets of using SCOR model
(Davies 2004; Malin 2006).
To date, the SCOR model has been used by companies
throughout the world. Intel is one of the rst major U.S.
corporations to adopt the SCOR model (Supply Chain
Council 2010). In 1999, Intel started its rst SCOR project
for its Resellers Product Division. Later, they expanded the
SCOR model implementation to the Systems Manufacturing
Division. Several other SCOR projects were conducted
afterward. The benets of implementing the SCOR model
included faster cycle times, less inventories, improved visibility of the supply chain, and access to important customer
information in a timely fashion. GE implemented the SCOR
model in its Transportation Systems unit, which reported
Corresponding author:
W. C. Benton, Jr., Department of Management Sciences, Fisher
College of Business, The Ohio State University, 2100 Neil Avenue, Columbus, OH 43210, USA; E-mail: benton.1@osu.edu
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Plan (planning)
Supply chain planning process uses information from external and internal operations to balance aggregate demand
and supply. The SCOR model suggests that the capability to
run simulated full stream supply demand balancing for
whatif scenarios is important for supply chain planning.
Whatif analysis helps rms to perform sensitivity analysis
334
H. Zhou et al.
Schematic
Descripon
1
Top Level
(Process
Types)
Plan
Source
Return
Configuration
Level (Process
Categories)
Process
Element Level
(Decompose
Processes)
P1.1
Identify, Prioritize, and
Aggregate Supply-Chain
Requirements
P1.2
Return
P1.3
P1.4
Balance Production
Resources with SupplyChain Requirements
Establish and
Communicate
Supply-Chain Plans
4
Not
in
Scope
MakeDeliver
Comments
Implementation
Level (Decompose
Process Elements)
(Shah and Ward 2007; Benton 2011b) and the SCOR model
include four groups of practices for the Make process: JIT
production, total preventive maintenance (TPM), total quality management (TQM), and human resource management
(HRM). JIT production includes several practices: pull system, cellular manufacturing, cycle time reduction, agile manufacturing strategy, and bottleneck removal (Wemmerlov
and Hyer 1989; Blackburn 1991; Powell 1995; MacDue
et al. 1996; Benton and Shin 1998; Flynn et al. 1999; Fullerton and McWatters 2001; Fullerton et al. 2003; Benton
2011a). The review of quality management literature has led
to the identication of good quality management practices:
TQM, statistical process control (SPC), continuous improvement program, and six-sigma techniques (Benton 1991; Powell 1995; Rungtusanatham et al. 1997; Pande et al. 2000; Cua
et al. 2001; Nair 2006; Kaynak and Hartley 2008). TPM is a
manufacturing program that primarily maximizes equipment
eectiveness throughout its entire life (Nakajima 1988; Cua
et al. 2001). Several studies have explored the good practices
of TPM and their positive relationship with business performance (Cua et al. 2001). The literature review led to the
identication of the following eective TPM practices: preventive maintenance; safety improvement program; planning
and scheduling strategies; and maintenance optimization.
The HRM practices emphasize employee team work and
workforce capabilities. Employee team work is important for
improving production, because frontline employees working
as a team can leverage the experience of all employees and
greatly contribute to process and product improvement
(Hayes and Wheelwright 1984). Workforce capability is
another important measurement for workforce management
(Gi et al. 1990; Schonberger 1990).
Deliver (outbound logistics)
The extant literature and anecdotal evidence show that delivery has become a critical link in supply chain management
(Gurin 2000; Ha et al. 2003). Goldsby and Stank (2000)
review the world class logistics competencies and capabilities.
One capability is sharing real-time information with supply
chain partners, which increases the real-time visibility of
order tracking. Agility is also an important competence of
world class logistics. Gurin (2000) describes how Ford partnered with the United Parcel Service to develop and implement an Internet-based delivery process, signicantly
improving Fords delivery performance. An Internet-based
delivery system can signicantly enhance the real-time order
tracking capability. Other best delivery practices identied
by the SCOR model include a single contact point for all
order inquiries, order consolidation, and the use of automatic identication. The bar code technology signicantly
improves the relationship between suppliers and buyers and
allows some emerging inventory management programs such
as vendor-managed inventory program. Ahmad and Schroeder (2001) identify several factors that aect delivery performance. The factors include JIT management, quality
management, production instability, and so on. However,
Ahmad and Schroeder (2001) do not use a scale to measure
the good practices in delivery process.
335
Figure 2: Supply
model.
Chain
Operations
Reference
(SCOR)
Source
H1
H4
Plan
H2
Make
H5
H3
Deliver
Source: Supply Chain Operations Reference Model, Supply
Chain Council (2010).
336
RESEARCH METHOD
Sample
The research objectives were achieved by obtaining responses
from manufacturing professionals holding senior-level positions. Contact information for qualied informants was identied with the assistance of the Supply Chain Council (2010).
The surveyed rms include Xerox Corp., Dow Corning
Corp., Owens Corning, Nachi Robotic Systems, Windsor
Mold Inc., and Minntech Corporation. The respondents
were senior executives and held titles such as CEO, President, Vice President, and Director. The average number of
employees in the respondents rms was about 5,000. Eight
H. Zhou et al.
337
Mean
SD
3.41
3.21
1.98
2.18
3.35
3.65
3.70
2.05
2.15
2.08
5.51
4.69
4.29
4.75
4.44
1.52
1.87
1.92
1.83
1.94
3.97
3.42
4.40
3.10
4.02
4.98
4.08
5.57
5.02
4.88
4.19
4.75
3.36
3.69
5.14
4.67
4.76
2.11
2.25
1.96
2.04
1.83
1.75
2.00
1.65
1.50
1.84
2.16
2.06
2.20
1.93
1.60
1.72
1.51
5.12
4.41
4.59
3.26
1.82
2.17
2.03
2.19
338
H. Zhou et al.
tor analysis results from Table 3 also show that all constructs satisfy the unidimensionality requirement. For all
scales except Deliver process, only one eigenvalue is larger
Variable name
Factor loading
Plan
Plan1
Plan2
Plan3
Plan4
Plan5
.75
.72
.74
.80
.75
Source
Source1
Source2
Source3
Source4
Source5
.59
.58
.66
.87
.87
JIT1
JIT2
JIT3
JIT4
JIT5
TPM1
TPM2
TPM3
TPM4
TQM1
TQM2
TQM3
TQM4
HRM1
HRM2
HRM3
HRM4
Deliver1
Deliver2
Deliver3
Deliver4
.57
.79
.86
.77
.84
.90
.79
.83
.77
.79
.85
.89
.84
.68
.78
.88
.75
.68
.83
.78
.68
JIT
TPM
TQM
HRM
.79
.87
.87
.82
Make
JIT
TPM
TQM
HRM
Deliver
Make
Scale statistics
Cronbachs alpha: .80
Largest eigenvalue (variance explained): 2.80 (56%)
Second largest eigenvalue (variance explained): .77 (15%)
Average variance extracted: .46
Reliability, q: .81
Average variance shared, c2: .34
Cronbachs alpha: .76
Largest eigenvalue (variance explained): 2.62 (52%)
Second largest eigenvalue (variance explained): .82 (16%)
Average variance extracted: .44
Reliability, q: .78
Average variance shared, c2: .39
Cronbachs alpha: .82
Largest eigenvalue (variance explained): 2.99 (60%)
Second largest eigenvalue (variance explained): .87 (17%)
than 1.00 and the variance explained by the largest eigenvalue is larger than 40%. For the Deliver process, the second
largest eigenvalue is slightly larger than 1.00. The scree test
suggests that one factor is the most appropriate for this set
of items. Thus, the Deliver process is determined to be unidimensional. For the reliability, Table 3 shows that all scales
have Cronbachs alpha values of .7 or higher. Thus, it is concluded that all measurement scales are reliable.
After performing the exploratory factor analysis, CFA
was performed to conrm the measurement model of the
structural equation model. As Table 3 shows, reliability rho
scores for all constructs exceed the threshold of .7 (Fornell
and Larcker 1981). For each construct, the average shared
variance is smaller than the average variance extracted.
Moreover, the overall CFA model statistics (comparative t
index [CFI] = .93, incremental t index [IFI] = .93, nonnormed t index [NNFI] = .91, and root mean square error
of approximation [RMSEA] = .09) suggest that the proposed construct structure has a reasonably good t. It is to
be noted that JIT, TPM, TQM, and HRM do not have the
three CFA-related measures (i.e., average variance extracted,
shared variance, and reliability rho) because they are the
measurement items for the latent variable Make in the CFA
model. For example, JIT value in the CFA model is the
average of the ve JIT items (i.e., JIT1, JIT2, JIT3, JIT4,
and JIT5) in Table 3.
As we used a single informant to answer all questions,
potential common method bias is checked. The items comprising the scales of planning, sourcing, JIT, TPM, TQM,
HRM, and delivery were not highly similar in content. The
respondents are familiar with the constructs. Harmans onefactor test of common method bias (Podsako and Organ
1986; Podsako et al. 2003; Hochwarter et al. 2004) found
several distinct factors for the variables, which suggested that
common method variance bias was not a problem.
Summary of research methodology
This study used a survey research method. The analysis was
based on 125 useable responses from U.S. manufacturing
rms. The survey followed the standard process suggested by
Dillman (2007) to ensure that a good and representative
sample was obtained. After the sample was obtained, the statistical analysis has been performed to ensure that the measurement scales are valid and reliable before the
measurement scales have been used in further statistical analysis such as structural equation model. Other measurement
concerns such as common method bias have been addressed
in this research methodology stage.
ANALYSIS RESULTS
Descriptive statistics
The descriptive statistics in Table 2 show that the mean of
the supply chain planning and JIT practices are relatively
low compared with the practices of the Source, TPM, TQM,
HRM, and Deliver processes. The means of the planning
339
and JIT practices are 3.46 and 3.78, respectively, while the
means of the Source, TPM, TQM, HRM, and Deliver practices are 4.74, 4.91, 4.30, 4.57, and 4.34, respectively. For the
ve planning practices, all of them are below 4.00. In contrast to that, all ve sourcing practices have scores above
4.00. In the Make process, it is quite surprising to see that
the mean of the pull system, cellular manufacturing, agile
manufacturing strategy, six-sigma techniques, and self-directed work teams are below 4.00, since the lean manufacturing
has been introduced to North America for more than
20 years and many studies have reported extensive implementation of lean practices in North American rms (Powell
1995; Flynn et al. 1999; Shah and Ward 2003). It seems that
the rms are doing well in the TPM area and most aspects
of TQM and HRM. The factor analysis for the four indicators (JIT, TPM, TQM, and HRM) of the Make process supports the idea of lean manufacturing bundles in Shah and
Ward (2003). Regarding the delivery process, the rms are
doing well on all practices except automatic identication. In
sum, the descriptive statistics suggest that rms are doing
well overall in sourcing, delivery, TPM, TQM, and HRM,
the means of which are above 4.00. But the rms are not
doing as well on supply chain planning and JIT production,
the means of which are below 4.00.
Structural equation model
We use the structural equation model method to test the
hypotheses H1H5 about the relationships among the four
supply chain processes and the results are shown in Figure 3.
The results are summarized in Tables 3 and 4. Then we use
Sobel tests to test the two mediation eects hypothesized in
H6 and H7. The results are shown in Table 5.
Before running the structural equation model, the score
for JIT, TPQ, TQM, and HRM were calculated according to
the average of the items with related factor. Therefore, JIT,
TQM, TPM, and HRM are considered as indicators for
Make construct. A number of t statistics were used to evaluate the models because no single measure was adequate
(Bollen and Long 1993). A normed chi-square below one
indicates that the model is overtted (Joreskog 1969), while
a value larger than 3.0 (Carmines and McIver 1981) to 5.0
(Wheaton et al. 1977) indicates that a model does not adequately t the data. The normed chi-square adjusts the sample discrepancy function by the degree of freedom. Hair
et al. (1998) provide guidelines for interpreting the RMSEA
Table 4: Results of hypotheses tests
Path in the structural
model
Path coecient
estimate (t-value)
Outcome
.46*
.31*
.44*
.63*
.38*
Supported
Supported
Supported
Supported
Supported
(3.27)
(3.35)
(3.13)
(3.71)
(2.80)
340
H. Zhou et al.
Plan
Source
Variable
Plan
Make
Plan
H5: 2=.38*
H3: 3=.44*
Deliver
According to the SEM results, all path coecients are significant at the .05 level and the t-values are larger than 2.0.
Mediation eect
To test the two mediation eects, the Sobel tests are used.
For each mediation test, three regressions are required. Take
the mediation eect of Source process as an example (see
Table 5). First, Plan process must have signicant inuence
on Make process. Second, Plan process must have signicant
inuence on Source process. Third, the inuence of Plan process on Make process must change signicantly when Source
process is entered into the regression model. Then a Sobel
test is performed to test the signicance of the mediation
eect (Venkatraman 1989).
Model 1 in Table 5 shows that the Plan process has a signicant inuence on Make process. The regression coecient
is .405, which is signicant at the 5% level. Model 2 shows
that the Plan process has a signicant inuence on the
Source process. The coecient is .392, which is signicant at
the 5% level. Model 3 shows that the coecient of the Plan
process on the Make process is reduced to .212 when Source
process is entered into regression together with the Plan process. To test whether this reduction is signicant, a Sobel test
is performed. The calculation of the Sobel test statistics is
shown in Table 5. The result shows that the Sobel test statistic is 4.5. The p-value of this Sobel test is smaller than .05.
This means that the Source process signicantly mediates the
inuence of the Plan process on the Make process. Similar
regression analysis is performed for the mediation eect of
the Make process. The results are summarized in Table 5.
The Sobel test statistic is 3.5. The p-value of this Sobel test
is smaller than .05 as well. Thus, we conclude that the Make
process signicantly mediates the inuence of the Plan process
on the Deliver process.
Summary of analysis
This analysis section rst provides the descriptive statistics of
all measurement items, which gives the readers an overall
picture of the data set. Using the measurement scales validated in the third section, the structural equation modeling
analysis tests the relationships among the four processes in
341
342
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SHORT BIOGRAPHIES
Honggeng Zhou (PhD The Ohio State University) is an
Associate Professor in the Whittemore School of Business
and Economics at the University of New Hampshire, where
he teaches courses to undergraduates and MBA students.
His primary research interests include supply chain management and operations management. He has published in Journal of Operations Management, Decision Sciences,
International Journal of Production Economics, etc.
W. C. Benton, Jr. (PhD Indiana University) is the Edwin
D. Dodd Professor of Management Sciences in the Max M.
Fisher College of Business at The Ohio State University
where he teaches courses in health care delivery, operations
management, purchasing, and supply chain management to
undergraduates, MBAs, and doctoral candidates. He has
published numerous articles in the elds of health care, supply chain management, and sustainability.
David A. Schilling (PhD Johns Hopkins University) is a
Professor of Management Science at the Fisher College of
Business, The Ohio State University. He has published
numerous articles in the elds of transportation, location
analysis, and multi-objective programming.
Glenn W. Milligan (PhD The Ohio State University) is an
Emeritus Professor of Management Sciences at the Fisher
College of Business, The Ohio State University. He has
served as the Chair of the Department of Management
Sciences. He has published numerous articles in the elds of
quality management classication and log-linear models.
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