customer relationship management and supply chain management
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11. Customer Relationship Management and Supply Chain Management. Identify the primary functions of both customer relationship management (CRM) and collaborative CRM. Describe how businesses might utilize applications of each of the two major components of operational CRM systems. - PowerPoint PPT PresentationTRANSCRIPT
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Customer Relationship Management and Supply Chain Management
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1. Identify the primary functions of both customer relationship management (CRM) 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.4. Explain the advantages and disadvantages of mobile CRM
systems, on-demand CRM systems, and open-source CRM systems.
5. Describe the three components and the three flows of a supply chain.
6. Identify popular strategies to solving different challenges of supply chains.
7. Explain the utility of each of the three major technologies that supports supply chain management.
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1. Defining Customer Relationship Management2. Operational Customer Relationship Management
Systems3. Analytical Customer Relationship Management
Systems4. Other Types of Customer Relationship Management
Systems5. Supply Chains6. Supply Chain Management7. Information Technology Support for Supply Chain
Management
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[ [ Opening Case Opening Case Customer Relationship Customer Relationship
Management in the Internet Age Management in the Internet Age ]]
• A Problem (First Example)
• A Problem (Second Example)
• A Solution (First Example)
• A Solution (Second Example)
• The Results
• What We Learned from This Case
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[about business][about business]
induPlast11.1
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Defining Customer Relationship Management
11.1
• Customer Relationship Management (CRM)
• Customer Touch Points• Data Consolidation
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Customer Relationship Management (CRM)• Customer Relationship Management
(CRM)– Lifetime value
– Customer churn
– CRM Strategy versus CRM Systems
– Low-end CRM Systems versus High-end CRM Systems
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Data Consolidation
• 360-degree view• Collaborative CRM
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[about business][about business]
A Hotel Concierge in Your Pocket
11.2
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Operational Customer Relationship Management Systems
11.2
• Operational CRM Systems• Customer-Facing Applications• Customer-Touching
Applications
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Operational CRM Systems• Two Major Components
– Customer-facing applications– Customer touching applications
• Operational CRM Systems provide the following benefits:– Efficient, personalized marketing, sales, and service– A 360-degree view of each customer– The ability of sales and service employees to access a
complete history of customer interaction with the organization, regardless of the touch point.
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Customer-Facing Applications• Customer Service and Support• Sales Force Automation (SFA)• Marketing• Campaign Management
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Customer Service and Support• Customer Interaction Centers (CIC)
– Call center
– Outbound telesales
– Inbound teleservice
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Sales Force Automation
• Contact management system• Sales lead tracking system• Sales forecasting system• Product knowledge system• Configurators
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Marketing
• Cross selling• Up selling• Bundling
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Customer-Touching Applications• Search and Comparison Capabilities• Technical and Other Information and
Services• Customized Products and Services• Personalized web pages• FAQs• E-mail and Automated Response• Loyalty Programs
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[about business][about business]
Starbuck’s Loyalty Program Goes Mobile
11.3
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Analytical Customer Relationship Management Systems
11.3
• Analytical CRM systems analyze customer data for a variety of purposes
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Analytical CRM systems analyze customer data for a variety of purposes, including:
• Designing and executing targeted marketing campaigns
• Increasing customer acquisition, cross selling, and up selling
• Providing input into decisions relating to products and services (e.g., pricing and product development)
• Providing financial forecasting and customer profitability analysis
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Other Types of Customer Relationship Management Systems
11.4
• On-demand CRM systems• Mobile CRM Systems• Open-Source CRM Systems
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Other Types of Customer Relationship Management Systems• On-demand CRM systems
– Utility computing
– Software-as-a-service
• Mobile CRM Systems• Open-Source CRM Systems
– SugarCRM
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[about business][about business]
Mobile CRM at Nutricia
11.4
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Supply Chains11.5
• Supply Chain• Supply Chain Visibility• The Structure and
Components of Supply Chains
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The Structure and Components of Supply Chains• The Structure of Supply Chains• The Components of Supply Chains
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The Structure of Supply Chains• Upstream• Internal• Downstream
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The Components of Supply Chains• Tiers of Suppliers• The Flows in the Supply Chain
– Materials Flows
– Information Flows
– Financial Flows
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[about business][about business]
Campus Quilts Partners with UPS to Manage Its Supply Chain
11.5
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Supply Chain Management
11.6
• Five Basic Components of SCM:• Interorganizational Information
Systems (IOS)• The Push Model versus the Pull
Model• Problems along the Supply Chain• Solutions to Supply Chain
Problems
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Five Basic Components of Supply Chain Management
• Plan• Source• Make• Deliver• Return
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Interorganizational Information Systems (IOS)• Enable the partners to perform the
following:– Reduce the costs of routine business transactions– Improve the quality of the information flow by reducing or
eliminating errors– Compress the cycle time involved in fulfilling business
transactions– Eliminate paper processing and its associated
inefficiencies and costs– Make the transfer and processing of information easier for
users
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The Push Model versus the Pull Model
• Push Model – make-to-stock
• Pull Model – make-to-order
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Problems along the Supply Chain
• Two main sources of problems– Uncertainties
– The need to coordinate multiple activities, internal units, and business partners.
• Demand forecast• Bullwhip effect
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Solutions to Supply Chain Problems
• Using Inventories to Solve Supply Chain Problems– Just-in-time (JIT) inventory system
– Information Sharing
– Vendor-managed inventory (VMI)
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[about business][about business]
3M Deals with Supply Chain Problems
11.6
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[about business][about business]
Airbus Moves to a “Smart Supply Chain”
11.7
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Information Technology Support for Supply Chain Management
11.7
• Electronic Data Interchange (EDI)
• Extranets• Portals and Exchanges
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Extranets
• Virtual Private Network (VPN)• A Company and Its Dealers,
Customers, or Suppliers• An Industry’s Extranet• Joint Ventures and Other Business
Partnerships
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Portal and Exchanges
• Two basic types of corporate portals– Procurement portals
– Distribution portals
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[[ Closing Case Closing Case Cengage Uses IT to Cengage Uses IT to
Improve Warehouse Operations Improve Warehouse Operations ]]
• The Problem
• The IT Solutions
• The Results