SCM & CRM

SCM & CRM

Introduction

The purpose of this report is to expand the boundaries of our knowledge by exploring some relevant facts and figures related to the analysis and comparison of Supply change management and customer relationship management. Supply chain is recognized as the major opportunity for business improvement for almost all the industrial sectors. The sector of automotive is the furthermost advanced in its supply chain management but there are some major issues which are being faced by the conventional volume car manufacturers. If the supply chain is managed effectively by the automotive sector than it can bring substantial outcomes and the benefits would continue. The needs of the customers should be met reliably, quickly and consistently on high service levels. But this was not being done by the conventional volume car manufacturers and they were facing problems in making their customers satisfied. The main issue is to keep up the quick and rapid pace of technological advancements. Growth and change is needed to make a place in saturated market. While keeping costs level under control, the quality and diversity is difficult to achieve. The marketing strategies are old and the companies do not focus on innovative ideas. Many industries have just started to recognize the importance of supply chains, and are not able to make progress. The demand of the customers could not be met by such industries. They face ultimate issues of cost effective processes and in providing compelling value to the customer. The conventional industries are not able to connect extensively with suppliers and customers. They lack continuous improvement required in saturated markets. The strategies built are not up to date and does not contain such features which makes the product different from others. Flexibility is absent. People, processes and systems are not adaptive and innovative.

Discussion

CRM & SCM

More and more companies are focussing on managing their relationships with their valued customers, the customer equity as well as customer assets. This has value associated with it. This value can be divided into two categories. One is the value that the customer gets from the customer also called customer lifetime value and the other is the value that the company gives its customers (Prasongsukarn, 2009, p. 16). Successful company and customer relationship is one which is marked by a win situation for both the customer and the company. There are many technologies that can be used to implement customer relationship management. This has many implications for an organization. The paper discusses the many implications of implementing customer relationship management strategies.

The development of relationships with customer segments and key customers serve to improve the shareholder value of any business. Customer relationship management may be defined as the amalgamation of information technology and marketing strategies to gain the customer lifetime value. In addition, it is imperative to state that the relationship is successful only when data is used to make sophisticated analyses. Customer relationship management is also a very good way of gaining insight into what the customer wants and gaining ...