SCM AND CRM

supply chain management and customer relationship management

1. SCM AND CRM Sibitha K. S . 17MSMB035 MBA A BATCH A presentation on

2. CONTENTS SCM CRM ISCRM NEED AND IMPORTANCE OF CRM COMPONENTS OF CRM VARIATIONS TYPES BENEFITS SWOT

3. SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the broad range of activities required to plan, control and execute a product's flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way possible.

4. CRM Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

5. CUSTOMER RELATIONSHIP MANAGEMENT CRM consists of the processes a company uses to track and organize its contacts with its current and prospective customers. Typical CRM goals are: Acquire new customers Retain customers Improve cross selling and up-selling opportunities

6. Integrated Supply Chain and Customer Relationship Management ( ISCRM ) JDA Chief Technology Officer Scott Hines coined the term ISCRM ; Integrated Supply Chain and Customer Relationship Management. Companies so far rarely integrate supply chain management and customer relationship management. By integrating these business processes companies are able to break through and achieve a number of improvements in their financial and performance metrics that would have been unachievable using only stand alone CRM & SCM techniques .

7. Three phases of customer experience

8. Need and Importance of CRM Better service to customers For example, ICICI Bank maintains a list of priority customers and provides them with addi­tional facilities and special offers such as free tickets to concerts, movies, and so on. Some banks, such as Syrian Catholic Bank provide personalized services to their important customers. Customization of market offerings Reduction in the customer defection rate Increase and improvement in long-term relationships Increase in customer equity Competitive advantage Building and maintaining corporate image Higher return on investment

9. PURPOSE OF CRM “The focus is on creating value for the customer and the company over the longer term”. When customer value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs. CRM enables organizations to gain ‘competitive advantage’ over competitors that supply similar products or services.

10. “Customer relationship management focuses on strategically significant markets. Not all customers are equally important ”. Therefore, relationships should be built with customers that are likely to provide value for services. Building relationships with customers that will provide little value could result in a loss of time, staff and financial resources.

11. Components of CRM Marketing automation   Sales force automation   Contact center automation   Geo-location technology, or location-based services Workflow automation Lead management Human resource management   Analytics AI in CRM

12. Three layers of scm tools

13. SAP Oracle JDA software Manhattan Associates i2 Technologies RedPrairie Infor Aldata Sterling Commerce Swisslog Epicor Highjump Brooks Software (Applied materials) Microsoft Click Commerce QAD ILOG CDC Software IBS IFS Some software companies that provide supply chain planning, collaboration and execution solutions:

14. VARIATIONS of CRM Sales force automation SFA uses software to streamline the sales process. The core of SFA is a contact management system for tracking and recording every stage in the sales process for each prospective client, from initial contact to final disposition. Many SFA applications also include insights into opportunities, territories, sales forecasts and workflow automation.

15. Marketing CRM systems for marketing track and measure campaigns over multiple channels, such as email, search, social media, telephone and direct mail. These systems track clicks, responses, leads, deals, and revenue. Appointments Appointment CRMs automatically provide suitable appointment times to customers via e-mail or the web, which are then synchronized with the representative or agent's calendar.

16. Customer service and support CRMs can be used to create, assign and manage requests made by customers, such as call center software which help direct customers to agents. CRM software can also be used to identify and reward loyal customers. Social media Some CRMs coordinate with social media sites like Twitter, LinkedIn, Facebook and Google Plus to track and communicate with customers who share opinions and experiences about their company, products and services.

17. Small business For small businesses a CRM may simply consist of a contact manager system which integrates emails, documents, jobs, faxes, and scheduling for individual accounts.

18. BENEFITS Reduced costs, because the right things are being done. Increased customer satisfaction, because they are getting exactly what they want (i.e.. meeting and exceeding expectations) Ensuring that the focus of the organisation is external. Growth in numbers of customers. Maximisation of opportunities (e.g.. increased services, referrals, etc.) Increased access to a source of market and competitor information. Highlighting poor operational processes. Long term profitability and sustainability.

19. The Seven ‘R’s of CRM’s Contribution to Supply Chain Good customer relationships are the result of The right product For the right customer In the right place At the right time In the right quantity In the right condition and At the right cost US supermarket Walmart and Target both use CRM to run sales promotions aimed at specific customer groups, using these business analytics.

20. Types of CRM technology The four main vendors of CRM systems are  Salesforce , Microsoft, SAP and Oracle . On-premises CRM  This system puts the onus of administration, control, security and maintenance of the database and information on the company using the CRM software. Yearly subscriptions.

21. Cloud-based CRM With cloud-based CRM - also known as  SaaS  (software as a service) or on-demand CRM Data is stored on an external, remote network that employees can access anytime, anywhere there is an internet connection.

22. Open source CRM An   Open source CRM system make source code available to the public, enabling companies to make alterations at no cost to the company employing the system. Open source CRM systems also enable the addition and customization of data links on social media channels, assisting companies looking to improve social CRM practices. Open Source CRM platforms such as OroCRM , SuiteCRM and SugarCRM offer alternatives to the proprietary platforms from Salesforce , Microsoft and other vendors.

23. SWOT ANALYSIS OF CRM STRENGTH Identifies best customers Holds all customer information Increases sales efficiency Ensures customer satisfaction

24. WEAKNESS  Overload of information Does not arrive with information already entered• Lack of cultural prep aration OPPURTUNITIES  Ability to please customer Increase sales base Improve relationship with customer

25. THREATS  Loss of personal interaction Over automation Poor integration with back office systems

26. REFERENCES Amit Sinha , Herbery Kotzab , Supply chain management Nasrollah Moghaddam Charkari , Neda Abdolvan,2015 https://www.researchgate.net/publication/267238558_A_Proposed_Model_in_Integrating_SCM_CRM_ERP Neil Kokemuller , https://yourbusiness.azcentral.com/supply-chain-management-vs-customer-relationship-management-7884.html Alok Kumar Rai , 2011, “CRM Concept & Cases”, Prentice Hall of India Private Limited. pp 83-87 Michael J. A. Berry, Gordon S. Linoff , “Mastering Data Mining: The Art And Science Of CRM” Ramaswamy , Patrica 13, “Harvard Business Review On CRM” Anonymous, 2013, https://www.logisticsbureau.com/crm-and-the-supply-chain

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