Keeping SCOR of SCM, Lean and Six-Sigma Best Practices

What are the common SCM Best Practices? What are the contribution of SCOR Model, Lean manufacturing and Six-Sigma in SCM? Which concept/tool (SCOR Model/Lean manufacturing/ Six-Sigma) is best in better SCM in today's context? When an organization wants to implement a SCM practices. which one of the above is best suited or give more advantage?

• The SCOR model provides a common language and set of metrics that cascade from one level to the next.
  

• Lean provides a very disciplined set of practices by which to run both efficiently and effectively -- in the supply chain, it keeps inventory low and helps minimize the bullwhip effect by doing load leveling.
  

• Six Sigma is a statistically-based approach to identifying, analyzing and fixing processes that detract from optimal performance to customer needs.

  It is basically a focused troubleshooting and improvement tool.

There is no simple answer to which provides the greatest advantage. As you can see, each has a role.

The key in any of these is educating the employees and applying a very high level of discipline to ensure they are properly focused and measured.

SCOR is inherently supply chain focused. Lean and Six Sigma can be applied not only to production and supply chain, but to other operations such as finance and administration that also contribute to supply chain efficiency.

SCOR has also laid out a very nice multi-level hierarchy of processes and metrics that help link strategy to execution.

Lean is a core way of thinking and working, so in some ways has the highest potential for benefit. It also has the most practices that are interdependent, so many companies have only a few components of lean in place and never gain the full benefits as a result.

A lean supply chain must also factor in risk from global partnership scenarios -- such as port disruptions, civil unrest in supplier countries, weather on ocean shipping routes, etc. -- this has been an important lesson in lean: Do not go too lean or the risk levels skyrocket.

We would recommend working with a business consultant who can work with you to understand your specific areas of need, plus the cultural environment that would need to change to adopt any of these frameworks.