chapter 11 customer relationship management and supply chain management
TRANSCRIPT
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CHAPTER 11
Customer Relationship Management and Supply Chain Management
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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 ManagementSystems
11.5 Supply Chains
11.6 Supply Chain Management
11.7 Information Technology Support for Supply Chain Management
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LEARNING OBJECTIVES
1. Define customer relationship management and collaborative CRM, and identify the primary functions of both processes.
2. Describe the two major components of operational CRM systems, list three applications used in each component, and provide at least one example of how businesses use each application.
3. Describe analytical CRM systems, and describe four purposes for which businesses use these systems.
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LEARNING OBJECTIVES
4. Define mobile CRM systems, on-demand CRM systems, and open-source CRM systems, and identify one main advantage and one main drawback of each.
5. Define the term, supply chain, and describe the three components and the three flows of a supply chain.
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LEARNING OBJECTIVES
6. Identify two major challenges in setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve supply chain problems.
7. Define the terms electronic data interchange (EDI), extranet, and portal, and explain how each of these applications helps support supply chain management.
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11.1 Defining Customer Relationship Management
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Defining Customer Relationship Management
• Customer Relationship Management (CRM)
• Customer Touch Points
• Data Consolidation
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11.2 Operational Customer Relationship Management
Systems
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Operational Customer Relationship Management Systems
• Operational CRM Systems
• Customer-Facing Applications
• Customer-Touching Applications
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Customer-Facing Applications
• Customer service and support
• Sales force automation
• Marketing
• Campaign management
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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
• Loyalty programs
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11.3 Analytical Customer Relationship Management
Systems
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Analytical Customer Relationship Management Systems
Analytical CRM systems analyze customer behavior and perceptions in order to provide actionable business intelligence.
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11.4 Other Types of Customer Relationship Management Systems
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Other Types of Customer Relationship Management Systems
• On-demand CRM
• Mobile CRM
• Open-source CRM
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11.5 Supply Chains
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The Flows of the Supply Chain
• Material flows
• Information flows
• Financial flows
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11.6 Supply Chain Management
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Supply Chain Management
• Supply chain management (SCM)
• Interorganizational information system (IOS)
• Push and Pull Model
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Problems Along the Supply Chain
• Poor customer service
• Poor quality product
• High inventory costs
• Loss of revenues
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Solutions to Supply Chain Problems
Using inventories Just-in-time inventory
Information sharing Vendor-managed inventory
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11.7 Information Technology Support for Supply Chain
Management
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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
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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
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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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Types of Portals and Exchanges
• Procurement portals
• Distribution portals
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Closing Case
• The Problem
• The Solution
• The Results