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Supply Chain Management and CRM The Business Network

Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Chapter 9 (Continued). Supply Chain Management and CRM The Business Network. KEY OUTCOMES OF ENTERPRISE APPLICATIOPNS. ERP: Integration of Systems in the Enterprise Centralised Data Base(Single point data )

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Supply Chain Management and CRM The Business Network

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  1. Achieving Operational Excellence and Customer Intimacy: Enterprise ApplicationsChapter 9 (Continued) Supply Chain Management and CRM The Business Network

  2. KEY OUTCOMES OF ENTERPRISE APPLICATIOPNS ERP: • Integration of Systems in the Enterprise • Centralised Data Base(Single point data ) SCM: • Inventory matched to Production • Delivery-Deadline improvement CRM: • Repeat and Replication Orders • Customer as Extended marketing-arm

  3. SCM and CRM • Cross-functional, inter-enterprise systems that use IT to help support & manage the links between some of a company’s key business processes and those of its suppliers, customers, & business partners. • Achieved through WebBased ERP, and EDI • Goal is to create a fast, efficient, & low-cost network of business relationships.

  4. Main Advantages • SCM : Reduces shortages, Improves Delivery Schedules and Profitability CRM: • Repeat Orders • Replication • Customer as Extended Marketeer

  5. Supply Chain Management (continued)

  6. Supply Chain Management (continued) -Electronic data interchange • Exchanging business transaction documents over the Internet & other networks between supply chain trading partners • UN-EDIFACT standard [EDIFACT (ISO 9735) is the international standard for electronic data interchange (EDI). The term stands for Electronic Data Interchange For Administration, Commerce and Transport.] • The UN-EDIFACT standard provides: • a set of syntax rules to structure data • an interactive exchange protocol (I-EDI) • standard messages which allow multi-country and multi-industry exchange • Business Partner Number

  7. Supply Chain Management (continued) • The Role of SCM

  8. Supply Chain Management (continued) • Benefits and Challenges • Can provide faster, more accurate order processing, reductions in inventory levels, quicker time to market, lower transaction and materials costs, & strategic relationships with suppliers

  9. Customer Relationship Management Systems • Customer relationship management (CRM) • Knowing the customer • In large businesses, too many customers and too many ways in which these customers interact with firm • CRM systems: • Capture and integrate customer data from all over the organization • Consolidate and analyze customer data • Distribute customer information to various systems and customer touch points across enterprise • Provide single enterprise view of customers

  10. CRM systems examine customers from a multifaceted perspective. These systems use a set of integrated applications to address all aspects of the customer relationship, including customer service, sales, and marketing. Figure 9-6 Customer Relationship Management (CRM)

  11. Customer Relationship Management Systems • CRM software (cont.) • CRM packages typically include tools for: • Sales force automation (SFA) • Sales prospect and contact information, sales quote generation capabilities • Customer service • Assigning and managing customer service requests, Web-based self-service capabilities • Marketing • Capturing prospect and customer data, scheduling and tracking direct-marketing mailings or e-mail, cross-selling

  12. Customer Relationship Management Systems • Operational CRM: • Customer-facing applications such as sales force automation, call center and customer service support, and marketing automation • Analytical CRM: • Based on data warehouses populated by operational CRM systems and customer touch points • Analyzes customer data (OLAP, data mining, etc.) • Customer lifetime value (CLTV)

  13. Supply Chain Management (continued) • Causes of Problems • Lack of proper Market-knowledge for Planning Demand, non-use of tools, and lack of guidelines • Inaccurate or overoptimistic demand forecasts • Inaccurate production, inventory, and other business data • Lack of adequate collaboration with customers

  14. Q & A THANK YOU

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