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SCOR Goes Green

April 16, 2008
Updated Supply Chain Operations Reference Model addresses environmental sustainability efforts while expanding risk management capabilities.

The Supply Chain Operations Reference (SCOR) Model, a global standard for supply chain projects developed by the Supply Chain Council, has been updated to address environmental sustainability efforts while expanding risk management capabilities. SCOR version 9.0 incorporates GreenSCOR, which had served as a standalone reference model. The GreenSCOR capabilities include:

  • Industry best practices for making the supply chain more environmentally friendly, such as collaborating with partners on environmental issues, reducing fuel and energy consumption, and minimizing and reusing packaging materials.
  • Metrics to measure the effects of greening, including carbon and environmental footprint, emissions costs per unit, energy costs as a percent of production costs, waste produced as a percent of product produced, and returned products disposed of versus remanufactured.
  • Processes to address waste management, such as how to collect and manage waste produced during production and testing (including scrap metal and nonconforming product).
SCOR 9.0 also now includes risk calculation metrics that cover all levels of the supply chain, and are designed to help a company more effectively balance risk impact and costs of risk mitigation with overall supply chain management costs. The two new higher-level risk metrics included in SCOR 9.0 are Value at Risk and Risk Mitigation Cost. Value at Risk is the sum of the probability of risk events multiplied by the monetary impact of the events for all the supply chain functions (plan, source, make, deliver and return). Risk Mitigation Cost is now a component of Total Supply Chain Management Cost and provides the total of these costs across all the processes.
Top 10 Techniques for Greening a Warehouse
  1. Preventative Maintenance
  2. Closing Dock Doors
  3. Upgrading Lighting
  4. Communicating with Associates
  5. Battery Charging
  6. Upgrading Equipment
  7. Paperlessness
  8. Occupancy Sensors
  9. Fleet Maintenance
  10. Top Management Commitment

Source: Warehousing Education and Research Council (WERC)

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