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Supply Chain Management

Vs

Customer Relationship Management

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Supply Chain Management

(SCM)

Definition

It is the management of a network of interconnected businesses

involved in the ultimate provision of product and service packages

required by end customers.

Supply-chain management is a total system approach to

managing the entire flow of information, materials, and services

from raw-material suppliers through factories and warehouses to

the end customer.

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Customer Relationship

Management (CRM)

Definition

Term applied to processes implemented by a company to handle its

contact with its customers CRM is a software-based approach to handling customer relationships

Store information on current and prospective customers

Application

All forms of trading like direct, traditional, retail, e-commerce,

wholesale, combination.

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Similarities

How these applications helpbusinesses

Effective application qualities

Companies have the same goalspertaining to the effectivenessand performance of SCM andCRM systems

SCM and CRM systems rely heavilycontaining the following attributes:flexibility; modular (being able tosupport many different platforms);comprehensive (the ability to

support a wide range oforganizational functions); andbeyond the company (connectingorganizations with partners andcustomers)

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CRM and SCM are related in both goals as

well as activities.

Both serve as catering to, and improvingservice for the customer.

Both utilize online technologies for the

process of streamlining informationgathering and exchange between suppliers

and customers

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Use

SCM

Managing information

within the supply chain

CRM

Managing the aspects of a

customers relationship to an

organization

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Users

Customers, resellers,

partners, suppliers,

distributors

Sales, marketing,

customer service

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Activities

SCM CRM

1.Strategic 1. Operational CRM

2.Tactical 2. Analytical CRM

3.Operational 3. Sales Intelligence

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Faster response to changes in supply and

demand ,

Increased customer satisfaction

Compliance with regulatory requirements

Higher margins

3. Business Benefits of SCM

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3. Business Benefits of CRM

development of better relations with your existing

customers, which can lead to:

increased sales through better timing due toanticipating needs based on historic trends

identifying needs more effectively by understanding

specific customer requirements

cross-selling of other products by highlighting and

suggesting alternatives or enhancements

identifying which of your customers are profitable and

which are not

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Leading Vendors

CRM

i2, Manugistics,

PeopleSoft

SCM

Siebel, Oracle,

PeopleSoft

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Link CRM to SCM

SCM when connected via business intelligence tools with CRM,

can throw light on many unknown aspects of a company's business

processes.

CRM can streamline SCM functions.Cost savings can be achieved by integration of both CRM and

SCM.

A streamlined supply chain is key to reaching out to the right

consumer at the right time.An efficient and responsive supply chain can have a huge positive

impact on store product segmentation and effective customer

targeting

Integration between CRM and SCM improves communicationbetween the store and the manufacturin