After
study this chapter we would able to list and describe the four basic components
of supply chain management
§ Supply chain strategy is the strategy
for managing all the resources required to meet customer demand for all
products and services
§ Supply chain partners are the
partners chosen to deliver finished products, raw materials, and services
including pricing, delivery, and payment processes along with partner
relationship monitoring metrics
§ Supply chain operation is the
schedule for production activities including testing, packaging, and
preparation for delivery
§ Supply chain logistics is the product
delivery processes and elements including orders, warehouses, carriers,
defective product returns, and invoicing
ü Supply chain management (SCM)
ü Customer relationship management
(CRM)
ü Business process reengineering (BPR)
ü Enterprise resource planning (ERP)
What is Supply Chain Management?
Supply Chain Management (SCM) can be defined as the involves in
management of information flows between and among stages in a supply chain to
maximize total supply chain effectiveness and profitability.
There are four basic
components of Supply Chain Management which come under
o
Supply chain strategy – strategy for managing all resources to meet customer demand
o
Supply chain partner – partners throughout the supply chain that deliver finished products,
raw materials, and services.
o
Supply chain operation – schedule for production activities
o
Supply chain
logistics – product
delivery process
Effective and efficient SCM systems can enable an
organization to
v Decrease the power of its buyers.
v Increase its own supplier power.
v Increase switching costs to reduce
the threat of substitute products or services.
v Create entry barriers thereby
reducing the threat of new entrants.
v Increase efficiencies while seeking a
competitive advantage through cost leadership.
What is Customer Relationship Management?
CRM is not
just technology, but a strategy, process, and business goal that an
organization must embrace on an enterprisewide level. If an organization does not embrace CRM on an
enterprisewide level it will have a difficult time gaining a complete view of
its customers. CRM can enable an
organization to identify types of customers, design specific marketing
campaigns tailored to each individual customer, and understand customer-buying
behaviors.
Customer
Relationship Management also involves managing all aspects of a customer’s
relationship with an organization to increase customer loyalty and retention
and an organization's profitability
Many
organizations, such as Charles Schwab and Kaiser Permanente, have obtained
great success through the implementation of CRM systems
Business Process
Reengineering
Ø Business process – a standardized set of activities
that accomplish a specific task, such as processing a customer’s order
Ø Business process reengineering (BPR) – the analysis and redesign of
workflow within and between enterprises
The purpose of BPR is to make all
business processes best-in-class
What is Enterprise Resource Planning?
•
It
is a systems collection data from across an organization and correlates the
data generating an enterprisewide view
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