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.
“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 organisations to gain ‘competitive
advantage’ over competitors that supply similar
products or services .
 “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.
DATA FLOW ENVIRONMENT
 Acquire Enhance Retain
CRM software tools CRM tools help CRM also helps a
can help businesses keep customers company identify
acquire new happy by providing and reward its
customers by superior service most loyal
improving from a responsive customers to retain
efficiency in team of sales and and expand their
contact service specialists. business via
management, sales targeted marketing
prospecting, selling .Hence retaining
and direct customers
marketing. becomes easier.
 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.
 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.
 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.

 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.

 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.
 When introducing or developing CRM, a strategic review of the
organisation’s current position should be undertaken.
 Organisations need to address four issues:
1. What is our core business and how will it evolve in the future?
2. What form of CRM is appropriate for our business now and in
the future?
3. What IT infrastructure do we have and what do we need to
support the future organisation needs?
4. What vendors and partners do we need to choose?
 reduced costs, because the right things are being done
(i.e.., effective and efficient operation)
 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
 1. Social CRM
Social media marketing remains on an uptrend and companies are paying attention.
Consumers are empowered by social networking sites to influence product or brand
image and perception. Negative feedback no longer simply routes a call to customer
service; businesses can expect feedback to reach potential markets before they do.
 2. Centralized Data
By centralizing customer data through CRM, businesses will be able to target and engage
customers more effectively. CRM data won’t end with generating leads for the sales team
but will be a continuing process that also includes maintaining relationships with a
growing customer base. (For related reading, see Using Product Management Features in
a CRM Solution.)

 3. Mobility
Customers are no longer bound to PCs and are constantly accessing data on the go.
Frontline employees and customer service resources will increasingly be empowered by
mobile devices for support. On the other side of the coin, customer perception will also
be shaped not only by real-world involvement, but also by online and mobile
experiences.
 4. Flexibility
Flexibility for CRM users is key because it allows them to customize the software to
meet their needs. Ease of integration and multichannel publishing are key
corporate considerations. As a result, a flexible and accessible CRM platform is
becoming increasingly important for users.
 5. Crowdsourcing
With customers gaining voice through social media, enterprises are increasingly
able take advantage of crowdsourcing for business improvements. Tapping current
customers for fresh ideas, solutions and expectations can help employees across an
organization provide the innovation and interactive relationship that a growing
number of customers now expect. This means that CRM will no longer be just for
lead generation and marketing, it will also provide a source for new innovation.
 Supply chain is a “process umbrella” under which
products are created and delivered to customers.
 It includes
suppliers, manufacturers, distributors, retailers and
customers. It also includes transporters and AS
HI
S
warehouses. MI
TR
 In essence, it consists of all parties A,
IT
DE
involved, directly or indirectly, in fulfilling a PT,

customer’s request. B.
CO
M
ST.
XA
VI
 The Supply Chain
Suppliers Manufacturers Warehouses & Customers
Distribution Centers

Transportation Transportation
Costs Costs
Material Costs Transportation
Manufacturing Costs Inventory Costs Costs
» A set of approaches used to efficiently integrate
˃ Suppliers
˃ Manufacturers
˃ Warehouses
˃ Distribution centers
» So that the product is produced and distributed
˃ In the right quantities
˃ To the right locations
˃ And at the right time
» System-wide costs are minimized and
» Service level requirements are satisfied
˃To gain efficiencies from procurement, distribution and
logistics
˃To make outsourcing more efficient
˃To meet competitive pressures from shorter development
times, more new products, and demand for more
customization
˃To meet the challenge of globalization and longer supply
chains
˃To meet the new challenges from e-commerce
˃To manage the complexities of supply chains
Dealing with uncertain environments – matching supply and
demand
• Boeing announced a $2.6 billion write-off in 1997 due to
“raw materials shortages, internal and supplier parts
shortages and productivity inefficiencies”
• IBM sold out its supply of its new Aptiva PC in 1994 costing
it millions in potential revenue

The growth of technologies such as the Internet enable greater

collaboration between supply chain trading partners
• If you don’t do it, your competitor will
• Major buyers such as Wal-Mart demand a level of “supply
chain maturity” of its suppliers
» Information links all » Bar code and point-of-sale
aspects of supply chain ˃data creates an
instantaneous computer
» E-business record of a sale
˃replacement of physical » Radio frequency identification
business processes with (RFID)
electronic ones ˃technology can send
product data from an item
» Electronic data interchange to a reader via radio waves
(EDI) » Internet
˃a computer-to- ˃allows companies to
communicate with
computer exchange of suppliers, customers, shippe
business documents rs and other businesses
around the
world, instantaneously
» Uncertainty is inherent to every supply chain
˃ Travel times
˃ Breakdowns of machines and vehicles
˃ Weather, natural catastrophe, war
˃ Local politics, labor conditions, border issues

» The complexity of the problem to globally optimize a supply

chain is significant
˃ Minimize internal costs
˃ Minimize uncertainty
˃ Deal with remaining uncertainty

24
» A 1997 PRTM Integrated Supply Chain Benchmarking Survey of
331 firms found significant benefits to integrating the supply
chain

Delivery Performance 16%-28% Improvement

Inventory Reduction 25%-60% Improvement
Fulfillment Cycle Time 30%-50% Improvement
Forecast Accuracy 25%-80% Improvement
Overall Productivity 10%-16% Improvement
Lower Supply-Chain Costs 25%-50% Improvement
Fill Rates 20%-30% Improvement
Improved Capacity Realization 10%-20% Improvement

Source: Cohen & Roussel

25
» View the supply chain as a strategic asset and a differentiator
˃ Wal-Mart’s partnership with Proctor & Gamble to automatically
replenish inventory
˃ Dell’s innovative direct-to-consumer sales and build-to-order
manufacturing
» Create unique supply chain configurations that align with your
company’s strategic objectives
˃ Operations strategy
˃ Outsourcing strategy
˃ Channel strategy
˃ Customer service strategy
Supply chain configuration
˃ Asset network
components
» Reduce uncertainty
˃ Forecasting
˃ Collaboration
˃ Integration
Globalization
Increased cross border sourcing
Collaboration for parts of value chain with
low-cost providers
Shared service centers for logistical and
administrative functions
Increasingly global operations, which
require increasingly global coordination and
planning to achieve global optimums