CRM AND SCM

By Anusha Pai

ENTERPRISE SYSTEMS
Manage all of the organizations interactions with customers front office Manage the majority of an organizations core internal processes back office

Customer Relationship Management

Selling products and services using Internet and the WWW

Enterprise Resource Planning

e-Commerce Supply Chain Management

Manage the movement of materials from suppliers and the movement of finished products through the distribution channel

CRM SYSTEMS

Customer Relationship Management Systems (CRM)

Manages all of the ways used by firms to deal with existing and potential 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 LOYALTY MANAGEMENT PROCESS MAP

CRM : CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

CRM

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 profitable customers and segments for marketing

THREE DIMENSIONS OF CRM

Operational

Analytic

Integrated Customer Data

Collaborative

Operational CRM
Supports customer interaction with greater convince through a variety of channels, like fax, mail, chat Synchronizes customer interactions consistently across all channels Makes company easier to do business with. Examples: Campaign management, e-marketing, account and contact management, telemarketing, teleselling , e-selling, field sales

Analytic CRM
Extract in depth customer history , preferences from data warehouse and other databases Allows to analyze, predict, and derive customer value behavior and forecast demand.

Examples: Develop customer profiles; analyze customer or product profitability; identify trends in sales length cycle; analyze leads generated and conversion rates develop predictive models to try and anticipate customer behavior

ANALYTICAL CRM DATA WAREHOUSE

Collaborative CRM
Enables easy collaborations with customers ,suppliers ,and partners. Improves the efficiency and integration throughout the supply 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..

PORTAL-BASED CRM

Provides all users with tools and information that fit their individual roles and preferences. Empowers all employees to respond to customer demands more quickly Provides the capability to instantly access , link and use all internal and external customer information.

SCM SYSTEMS

SUPPLY CHAIN

A network of activities, such as manufacturing plants, distribution centers, retail outlets, people, and information, which are linked together into processes supplying goods/services from source through consumption.

SCM

A cross-functional interenterprise system that uses IT to help support & manage the links between some of a companys key business processes and those of its suppliers, customers, & business partners. Goal is to create a fast, efficient, & low-cost network of business relationships

SUPPLY CHAIN MANAGEMENT (SCM)

The integration of suppliers, distributors, and customer logistics requirements into one cohesive process. Close linkage and coordination of activities involved in buying, making, and moving a product Reduces time, redundant effort, and inventory costs Increased responsiveness to customer demands

SCM

SUPPLY CHAIN PROCESS

SCOR (Chain Operations Reference Model) identifies five major supply chain processes: Plan: Balancing demand and supply to meet sourcing, production, and delivery requirements Source: Procurement of goods and services needed to create a product or service

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

KEY SUPPLY CHAIN MANAGEMENT PROCESSES

Figure 11-4

BUSINESS VALUE OF 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

INTEGRATION OF SCM ,CRM

Most companies conduct SC and CRM activities separately. Net result: Too much information tends to slip through the cracks. This can lead to both service failures companies struggling to fulfill orders from their most valuable customers as well as handle the high costs associated with excess inventory. In addition, keeping these activities separate means that companies cant identify their most desirable customers, and thus fail to initiate efforts to attract and retain them.

INTEGRATION OF SCM ,CRM

Smart companies are using sophisticated technologies to integrate SC and CRM. This allows them to ensure that they can identify valuable customers and effectively meet their needs, from the initial order to delivery to post-sales customer care. They can offer different services to different customers. Net result: Increased loyalty among the best customers, repeat business, and a significant boost to the bottom line.

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 the use?

Thank You