chapter 9 & 10 customer relationship management supply chain management
TRANSCRIPT
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CHAPTER 9 & 10
Customer Relationship ManagementSupply Chain Management
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OUTLINE
Customer Relationship Management (CRM) Definition Operational CRM Analytical CRM
Supply Chain Management (SCM) Supply Chains IT Support for Supply Chain Management
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Interorganizational Systems (IOS)
Figure 2.2
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From Neighborhood Stores…….
Personal
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To Today…..
Impersonal
Giant mallsThe Web
Mobile population
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Customer Touch Points
CUSTOMER
SmartPhone
Web Computer Physical Store
SalesRepresentative
CustomerService
ServiceCenter
Email Direct Mail
Field Service Technician
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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
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Principles of CRM
A customer-centered organizational strategy
“Treat different customers differently” Keep profitable customers and
maximize lifetime revenue from them
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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
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Customer-Facing Applications
Customer service and support
Sales force automation
Marketing
Campaign management
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Customer-Touching Applications
Search and comparison capabilities
Technical and other information and services
Customized products and services
Loyalty programs
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Supply Chain Management (SCM)
Generic Supply Chain
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Problems Along the Supply Chain
Longer product development cycle
Poor quality product Poor customer service High inventory costs Loss of revenues
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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
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SCM: The Push Model (Made-to-Stock)
Forecast
Mass production
Salesperson
Happy customer
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SCM: The Pull Model (Made-to-Order)
Dell customer orderDell factory
Dell customer
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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)
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IT Support for SCM: 1. Electronic Data Interchange (EDI)
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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.
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The Structure of an Extranet
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Types of Extranets
A company and its dealers, customers or suppliers
An industry’s extranet
Joint ventures and other business partnerships