chapter 9 & 10 customer relationship management supply chain management
TRANSCRIPT
CHAPTER 9 & 10
Customer Relationship ManagementSupply Chain Management
OUTLINE
Customer Relationship Management (CRM) Definition Operational CRM Analytical CRM
Supply Chain Management (SCM) Supply Chains IT Support for Supply Chain Management
Interorganizational Systems (IOS)
Figure 2.2
From Neighborhood Stores…….
Personal
To Today…..
Impersonal
Giant mallsThe Web
Mobile population
Customer Touch Points
CUSTOMER
SmartPhone
Web Computer Physical Store
SalesRepresentative
CustomerService
ServiceCenter
Email Direct Mail
Field Service Technician
Customer Relationship Management: Motivations
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%.
70% of complaining customers will remain loyal if their problem is solved
Principles of CRM
A customer-centered organizational strategy
“Treat different customers differently” Keep profitable customers and
maximize lifetime revenue from them
Components of a CRM System
• Sales• Marketing• Customer Service and
Support• Campaign Management
Customer-facing Applications
• Search and Comparison• Customized Products• Technical Information• Personalized Web Pages• FAQ• E-mail / Auto Response• Loyalty Programs
Customer-touching Applications
• Data Mining• Decision Support• Business Intelligence• OLAP
CustomerData
Warehouse
Customer-Facing Applications
Customer service and support
Sales force automation
Marketing
Campaign management
Customer-Touching Applications
Search and comparison capabilities
Technical and other information and services
Customized products and services
Loyalty programs
Supply Chain Management (SCM)
Generic Supply Chain
Problems Along the Supply Chain
Longer product development cycle
Poor quality product Poor customer service High inventory costs Loss of revenues
Demand Fluctuations Lead to the Bullwhip Effect
OrderQuantity
Time
Customer Sales
OrderQuantity
Time
Retail OrdersTo Wholesaler
OrderQuantity
Time
WholesalerOrders to
Manufacturer
OrderQuantity
Time
ManufacturerOrders toSupplier
SCM: The Push Model (Made-to-Stock)
Forecast
Mass production
Salesperson
Happy customer
SCM: The Pull Model (Made-to-Order)
Dell customer orderDell factory
Dell customer
Solutions to Supply Chain Problems
Removing excess inventory to expose hidden problems Just-in-time inventory (Toyota Production
System) Information sharing
Vendor-managed inventory (e.g., P&G)
IT Support for SCM: 1. Electronic Data Interchange (EDI)
IT Support for SCM: 2. 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