SCM and CRM by anusha pai

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    ENTERPRISESYSTEMS

    Customer

    Relationship

    Management

    Enterprise

    Resource Planning

    Supply Chain

    Management

    Manage all of the

    organizations

    interactions with

    customersfront

    office

    Manage the

    majority of an

    organizations core

    internal processes

    back office

    Manage the movement of materials

    from suppliers and the movement of

    finished products through the

    distribution channel

    e-Commerce

    Selling products

    and services using

    Internet and the

    WWW

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    CRM SYSTEMS

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    Manages all of the ways used by firms to deal with existing andpotential new customers

    CRM Uses information system to integrate entire business

    processes of a firms interaction with its customers.

    Provides end-to-end customer care.

    Provides a unified view of customer across the company

    Customer Relationship Management Systems (CRM)

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    CUSTOMER LOYALTY MANAGEMENT PROCESS MAP

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    CRM : CUSTOMER RELATIONSHIPMANAGEMENT SYSTEMS

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    CRM

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    Business Value of Customer Relationship

    Management Systems

    Increased customer satisfaction.

    More effective marketing and reduced direct

    marketing costs

    Lower costs for customer acquisition

    Increased revenue from identifying most profitablecustomers and segments for marketing

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    THREEDIMENSIONS OF CRM

    IntegratedCustomer

    Data

    Operational

    Collaborative

    Analytic

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    Operational CRM

    Supports customer interaction with greater convincethrough a variety of channels, like fax, mail, chat

    Synchronizes customer interactions consistentlyacross all channels

    Makes company easier to do business with.

    Examples: Campaign management, e-marketing,account and contact management, telemarketing,teleselling , e-selling, field sales

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    Extract in depth customer history , preferences fromdata warehouse and other databases

    Allows to analyze, predict, and derive customer

    value behavior and forecast demand.

    Examples: Develop customer profiles; analyzecustomer or product profitability; identify trends in

    sales length cycle; analyze leads generated andconversion rates develop predictive models to try

    and anticipate customer behavior

    Analytic CRM

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    ANALYTICAL CRM DATA WAREHOUSE

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    Collaborative CRM

    Enables easy collaborations with customers ,suppliers,and partners.

    Improves the efficiency and integration throughout thesupply chain.

    Allows greater responsiveness to customer needs.

    A good example of collaborative CRM is web page

    personalization.

    Collaborative CRM uses the output of analytic CRM..

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    PORTAL-BASED CRM

    Provides all users with tools and information that fittheir individual roles and preferences.

    Empowers all employees to respond to customerdemands more quickly

    Provides the capability to instantly access , link and

    use all internal and external customer information.

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    SCM SYSTEMS

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    SUPPLY CHAIN

    A network of activities, such as manufacturingplants, distributioncenters, retail outlets, people,and information, which are linked together intoprocesses supplying goods/services from source

    through consumption.

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    SCM

    A cross-functional interenterprise system that usesIT to help support & manage the links betweensome of a companys key business processes and

    those of its suppliers, customers, & business

    partners.

    Goal is to create a fast, efficient, & low-cost networkof business relationships

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    SUPPLY CHAIN MANAGEMENT (SCM)

    The integration of suppliers, distributors, andcustomer logistics requirements into one cohesiveprocess.

    Close linkage and coordination of activities involvedin buying, making, and moving a product

    Reduces time, redundant effort, and inventory costs

    Increased responsiveness to customer demands

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    SCM

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    SUPPLY CHAIN PROCESS

    SCOR (Chain Operations Reference Model)identifies five major supply chain processes:

    Plan: Balancing demand and supply to meetsourcing, production, and delivery requirements

    Source: Procurement of goods and services

    needed to create a product or service

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    CONTINUE

    Make: Processes that transform a product into a

    finished state

    Deliver: Processes to manage order transportation

    and distribution

    Return: Processes associated with product returns

    and post delivery customer support

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    KEY SUPPLY CHAIN MANAGEMENT PROCESSES

    Figure 11-4

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    BUSINESS VALUEOF SCM

    Management decides when, what to produce, store,

    move.

    Rapidly communicate orders.

    Track the status of orders.

    Check inventory availability, monitor levels.

    Improve delivery service.

    Reduce paperwork

    Provide product specifications

    Share information about defect rates, returns

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    INTEGRATION OF SCM ,CRM

    Most companies conduct SC and CRM activitiesseparately.

    Net result: Too much information tends to slipthrough the cracks.

    This can lead to both service failures companiesstruggling to fulfill orders from their most valuablecustomers as well as handle the high costsassociated with excess inventory.

    In addition, keeping these activities separatemeans that companies cant identify their most

    desirable customers, and thus fail to initiate effortsto attract and retain them.

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    INTEGRATION OF SCM ,CRM

    Smart companies are using sophisticatedtechnologies to integrate SC and CRM.

    This allows them to ensure that they can identifyvaluable customers and effectively meet theirneeds, from the initial order to delivery to post-salescustomer care. They can offer different services todifferent customers.

    Net result: Increased loyalty among the bestcustomers, repeat business, and a significant boostto the bottom line.

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    QUESTIONS.

    1.What is Customer Relationship management ?Explain the types of CRM.

    2.What is CRM?, Explain types of CRM.

    3.Explain CRM,SCM

    4.Explain SCM in detail

    5.Can CRM and SCM integrate ?, If yes what is theuse?

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    Thank You