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    Customer Relationship Management and Supply Chain Management

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    Aiza Arcena
    This chapter discusses customer relationship management (CRM) and supply chain management. It covers operational CRM systems like sales force automation and marketing campaigns. It also discusses analytical CRM systems that analyze customer data and behaviors. The chapter describes different types of CRM systems and how they integrate with data warehouses. It defines supply chains and the flows of materials, information and finances. It explains how supply chain management addresses issues like inventory costs and the bullwhip effect. The chapter also covers how technologies like electronic data interchange and extranets support supply chain operations and collaboration between businesses.

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    Customer Relationship Management and Supply Chain Management

    Uploaded by

    Aiza Arcena
    72 views43 pages
    This chapter discusses customer relationship management (CRM) and supply chain management. It covers operational CRM systems like sales force automation and marketing campaigns. It also discusses analytical CRM systems that analyze customer data and behaviors. The chapter describes different types of CRM systems and how they integrate with data warehouses. It defines supply chains and the flows of materials, information and finances. It explains how supply chain management addresses issues like inventory costs and the bullwhip effect. The chapter also covers how technologies like electronic data interchange and extranets support supply chain operations and collaboration between businesses.

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    This chapter discusses customer relationship management (CRM) and supply chain management. It covers operational CRM systems like sales force automation and marketing campaigns. It also discusses analytical CRM systems that analyze customer data and behaviors. The chapter describes different types of CRM systems and how they integrate with data warehouses. It defines supply chains and the flows of materials, information and finances. It explains how supply chain management addresses issues like inventory costs and the bullwhip effect. The chapter also covers how technologies like electronic data interchange and extranets support supply chain operations and collaboration between businesses.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    72 views43 pages

    Customer Relationship Management and Supply Chain Management

    Uploaded by

    Aiza Arcena
    This chapter discusses customer relationship management (CRM) and supply chain management. It covers operational CRM systems like sales force automation and marketing campaigns. It also discusses analytical CRM systems that analyze customer data and behaviors. The chapter describes different types of CRM systems and how they integrate with data warehouses. It defines supply chains and the flows of materials, information and finances. It explains how supply chain management addresses issues like inventory costs and the bullwhip effect. The chapter also covers how technologies like electronic data interchange and extranets support supply chain operations and collaboration between businesses.

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    You are on page 1of 43

    CHAPTER 11

    Customer Relationship Management and


    Supply Chain Management
    CHAPTER OUTLINE
    11.1 Defining Customer Relationship Management
    11.2 Operational Customer Relationship Management Systems
    11.3 Analytical Customer Relationship Management Systems
    11.4 Other Types of Customer Relationship Management
    Systems
    11.5 Supply Chains
    11.6 Supply Chain Management
    11.7 Information Technology Support for Supply Chain
    Management
    LEARNING OBJECTIVES
    1. Identify the primary functions of customer
    relationship management and collaborative
    CRM.
    2. Describe how businesses might utilize
    applications of each of the two major
    components of operational CRM systems.
    3. Discuss the benefits of analytical CRM
    systems to businesses.
    LEARNING OBJECTIVES (continued)
    4. Explain the advantages and disadvantages of
    mobile CRM systems, on-demand CRM
    systems, and open-source CRM systems.
    5. Decribe the three components and the three
    flows of a supply chain.
    LEARNING OBJECTIVES
    (continued)
    6. Identify popular strategies to solve different
    challenges of a supply chain.
    7. Explain the utility of each of the three major
    technologies that supports supply chain
    management.
    11.1 Defining Customer Relationship
    Management
    From Neighborhood Stores…….

    Personal
    To Today…..

    Mobile population

    The Web
    Giant malls

    Impersonal
    Customer Intimacy?
    You

    Your
    competition

    Your
    customer

    Your problem
    The Need for CRM
    It costs six times more to sell to a new
    customer than to sell to an existing one.
    A typical dissatisfied customer will tell 8-10
    people.
    By increasing the customer retention rate by
    5%, profits could increase by 85%.
    Odds of selling to new customers = 15%,
    compared to the odds of selling to existing
    customers (50%)
    70% of complaining customers will remain loyal
    if their problem is solved
    Tenets of CRM

    One-to-one relationship between a customer


    and a seller.

    Treat different customers differently.

    Keep profitable customers and maximize


    lifetime revenue from them.
    Lifetime Customer Value
    Customer Touch Points
    Web Computer
    Physical
    Smart
    Store
    Phone

    Customer
    Service

    Sales
    CUSTOMER Representative
    Service
    Center
    Field
    Service
    Direct Technician
    Email Mail
    Data Consolidation = 360-Degree View of Customers
    Data Consolidation

    Accounting POM

    Finance HR

    Customer

    Marketing MIS
    11.2 Operational Customer
    Relationship Management Systems

    Two major components of operational CRM

    Customer-facing applications
    Customer-touching applications
    Customer-Facing Applications
    Customer service and support

    Sales force
    automation

    Marketing

    Campaign management
    Sales Force Automation

    An example of a
    configurator
    Marketing

    Cross selling
    Up selling
    Bundling
    Customer-Touching Applications

    Search and comparison capabilities

    Technical and other information and


    services

    Customized products and services

    Loyalty programs
    11.3 Analytical Customer
    Relationship Management Systems
    Analytical CRM systems analyze customer
    behavior and perceptions in order to provide
    actionable business intelligence.
    The Relationship Between Operational
    CRM and Analytical CRM
    Customer-facing Applications
    • Sales
    • Marketing
    • Customer Service and Customer
    Support
    • Campaign Management Data
    Customer-touching Applications
    Warehouse
    • Search and Comparison
    • Customized Products
    • Technical Information
    • Personalized Web Pages • Data Mining
    • FAQ • Decision Support
    • E-mail / Auto Response • Business Intelligence
    • Loyalty Programs • OLAP
    11.4 Other Types of Customer
    Relationship Management Systems
    On-demand CRM

    Mobile CRM: Pal Mickey


    at Disneyworld

    Open-source CRM
    11.5 Supply Chains
    Generic Supply Chain
    Supply Chain (recall Figure 1.5)
    A Look at Warehouse Operations

    See video of UPS Worldport


    Note: warehouses are just one component of supply chains
    The Flows of the Supply Chain

    Material flows

    Information flows

    Financial flows
    11.6 Supply Chain Management

    Supply chain management (SCM)


    Interorganizational information system (IOS)
    Push Model

    Mass production

    Forecast

    Salesperson

    Happy customer
    Pull Model

    Dell factory
    Dell customer order

    Dell customer
    Problems Along the Supply Chain

    Poor customer service


    Poor quality product
    High inventory costs
    Loss of revenues
    The Bullwhip Effect

    Order Order Order Order


    Quantity Quantity Quantity Quantity

    Time Time Time Time


    Customer Retail Orders Wholesaler Manufacturer
    Sales To Wholesaler Orders to Orders to
    Manufacturer Supplier
    Solutions to Supply Chain Problems

    Using inventories
    Just-in-time inventory
    Information sharing
    Vendor-managed inventory
    11.7 Information Technology Support
    for Supply Chain Management

    Electronic data interchange (EDI)


    Extranets
    EDI Benefits
     Minimize data entry errors
     Length of messages are shorter
     Messages are secured
     Reduces cycle time
     Increases productivity
     Enhances customer service
     Minimizes paper usage and storage
    EDI Limitations
     Significant initial investment to implement
     Ongoing operating costs are high due to
    the use of expensive, private VANs
     Traditional EDI system is inflexible
     Long startup period
     Multiple EDI standards exist
    Comparing Purchase Order
    Fulfillment Without EDI
    Comparing Purchase Order
    Fulfillment With EDI
    Extranets
    The main goal of extranets is to foster
    collaboration between business partners.

    An extranet is open to selected B2B


    suppliers, customers and other business
    partners.
    The Structure of an Extranet
    Types of Extranets
    A company and its dealers, customers or
    suppliers

    An industry’s extranet

    Joint ventures and other business


    partnerships

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