Archive for the ‘ VRM ’ Category

SCOR vs. the Value Reference Model (VRM)

Today I got a very interesting question. Essentially, this company is looking to adopt a standard SCM business process model and is considering SCOR versus the Value Reference Model (VRM) For many of my clients, SCOR is the de facto standard so it’s not often we get asked for alternatives. So I’m off to an inauspicious start here with my sourcing and supply chain advice blog since I don’t actually don’t have a great answer.

There are the obvious pros/cons here to consider – VRM is newer on the scene so less proven but that newness also means agility to update the process model as rapidly as the modern supply chain requires. On the flip side, SCOR is proven with a large number of clients to share best and worst practices with. Given the higher adoption, your odds of being able to actually do some meaningful benchmarking once you’ve rolled out the process model are much better. SCOR has been criticized for its inability to support the entire scope of the “value chain” but quite honestly, who are we kidding? I’ve never talked to a single company who has been able to roll out a process model that spans from product design to service and still maintains a level of detail that’s actually usable.

So what is the right answer here? My initial thinking is that a hybrid approach is the best one. Take the best of both process models and make them work for you. The issue I have is that I don’t know of any companies that have done this. So if anyone has done a detailed comparison between the two methodologies please drop me a note. I’d be really interested in hearing the results.