Chapter 9

Marketing CRM modules

1.Capture prospective and current customer data, qualify leads for target marketing, and provide support for scheduling and tracking direct-marketing mailings and e-mails 2.Include tools for analyzing customer and marketing data, identifying profitable and non-profitable customers, and designing products and services to meet specific customer needs 3.Support survey management - automate electronic surveys, polls, questionnaires to gather customer feedback 4.Support Cross-selling and Up-selling

Upstream

A firm's suppliers, supplier's suppliers, processes for managing relationships with them Materials flow from suppliers and their "upstream" suppliers at all levels to your firm

Analytical CRM

Analyzes customer data generated from operational CRM applications

Global Supply Chains and the Internet

Before the Internet, supply chain coordination was hampered by difficulties of using disparate internal supply chain systems

Safety stock

Buffer for lack of flexibility in supply chain

ERP Software

Built around thousands of predefined business processes that reflect best practices

Inefficiencies cut into a company's operating costs

Can waste up to 25 percent of operating expenses

Customer Relationship Management (CRM) Systems

Capture and integrate customer data from the entire organization Consolidate and analyze customer data Distribute customer information to various systems and customer touch points across enterprise Provide single enterprise view of customers

Just-in-time strategy

Components arrive as they are needed Finished goods shipped after leaving assembly line

Pull-based model (demand-driven, build-to-order)

Customer orders trigger events in supply chain

Operational CRM

Customer-facing applications such as sales force automation, call center and customer service support, and marketing automation

What are some of the reasons ERP systems are powerful organization tools?

ERP is a logical solution to the mess of incompatible applications that have sprung up in most businesses. ERP is used to avoid the pain and expense of fixing legacy systems.

What are some ERP system Benefits

Elimination of costly, inflexible legacy systems Improved work processes - supports best practices Increased availability and timeliness of information Increased data accuracy and improved response time Improved customer satisfaction Improved employee satisfaction Improved planning and scheduling Improved supplier relationships Improved reliability of information Reduction in inventory costs Reduction in labor costs Upgrade your technology infrastructure

what are some Global supply chain issues

Global supply chains typically span greater geographic distances and time differences More complex pricing issues (local taxes, transportation, etc.) Foreign government regulations

Sales Force Automation CRM Modules

Help increase sales force productivity Provide sales prospect and contact information, product information, product configuration capabilities, and sales quote generation Reduce cost per sale as well as cost of acquiring new customers Tools for sales forecasting, territory management, and team selling

What are some ERP system Risks/Costs

High monetary costs ERP System SW HW upgrades Possible consulting fees Possible customization fees May require radical changes to business processes to conform to the best practices supported by the ERP Difficulties in installation - time involved Extensive training required Difficulty integrating with other systems you may still need to use

What is some challenges for enterprise application? (ERP, SCM, and CRM)

Highly expensive to purchase and implement enterprise applications—total cost may be four to five times the price of software Technology changes Business process changes Organizational changes Switching costs, dependence on software vendors Data standardization, management, cleansing

Business intelligence

Inclusion of BI with enterprise applications Flexible reporting, ad hoc analysis, "what-if" scenarios, digital dashboards, data visualization

Social CRM

Incorporating social networking technologies Company social networks Customer interaction via Facebook

Business benefits

Increased customer satisfaction Reduced direct-marketing costs More effective marketing Lower costs for customer acquisition/retention Increased sales revenue Reduced churn rate

What are some advantages of supply chain management?

Match supply to demand Reduce inventory levels Improve delivery service Speed product time to market Use assets more effectively Reduced supply chain costs lead to increased profitability Increase sales

What is Churn rate?

Number of customers who stop using or purchasing products or services from a company Indicator of growth or decline of firm's customer base

Legacy Systems

Older TPS's that continue to be used to avoid the hi cost of replacing or redesigning them. Information is not readily shared between systems (i.e. Inbound Logistics inventory information is not shared with Operations)

Downstream

Organizations & processes responsible for delivering products to customers Products flow "downstream" to customers

Supply Chain Management

Process of working with suppliers and other partners in the supply chain to improve procedures for delivering products and services. Managing the information flows between and among stages in the supply chain to maximize effectiveness and profitability.

Transformation

Processing of materials into semifinished & finished products thru your organization's own production processes

What things do supply chain management coordinates?

Procuring materials Transforming materials into intermediate and finished products or services Distributing finished products or services to customers

What are two types of supply chain management systems?

Push-based model (build-to-stock) and Pull-based model (demand-driven, build-to-order)

RFID in the Retail Supply Chain

RFID tags are added to every product and shipping box. At every step of an item's journey, a reader scans one of the tags and updates the information on the server.

Core Operational CRM modules support?

Sales, Marketing, Customer Service

Push-based model (build-to-stock)

Schedules based on best guesses of demand

What can poor supply chain management result in?

Slow or inaccurate information from one company to another Excessive inventories or stock outs/backorders Inaccurate manufacturing & facilities capacity plans Missed production schedules Decreased profits Poor customer service

What aspects of the global supply chain does the internet help companies manage?

Sourcing, transportation, communications, international finance

Operational CRM

Supports traditional transactional processing for day-to-day front-office operations, or systems that deal directly with the customers

What are the three main links for supply chain management?

Upstream, Transformation, and Downstream.

ERP addresses the need for global information sharing and reporting.

What are some of the reasons ERP systems are powerful organization tools?

ERP is used to avoid the pain and expense of fixing legacy systems.

What are some of the reasons ERP systems are powerful organization tools?

What Is Customer Relationship Management

Who are they, how can you contact them, what products & services do they buy, how much money do they spend, how much profit do they generate for you?

Customer touch point (contact point)

a method of interaction with a customer (phone, e-mail, customer service desk, mail, social media, etc.

Automatic call distribution

a phone switch routes inbound calls to available agents

Call scripting systems

access organizational databases that track similar issues or questions and automatically generate the details to the customer service rep who can then relay them to the customer

Web-based self service

allows customers to use the Web to find answers to their questions or solutions to their problems

Supply chain

an integrated network consisting of an organization, its suppliers, transportation companies and brokers used to deliver goods and services to customers.

Predictive dialing

automatically dials outbound calls and when someone answers, the call is forwarded to an available agent

Supply chains may vary in what depending on the organization and industry?

complexity

Interactive voice response

directs customers to use touch-tone phones or keywords to navigate or provide information

Up-selling

increasing the value of the sale by selling a larger amount or size

Enterprise resource planning systems (ERP)

integrate all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprise wide decisions by viewing enterprise wide information on all business operations

Enterprise solutions/suites:

make applications more flexible, Web-enabled, integrated with other systems

Bullwhip effect

occurs when distorted product demand information passes from one entity to the next throughout the supply chain

Cross-selling

selling additional (complementary) products or services

Both service and manufacturing organizations have?

supply chains

Supply chain visibility

the ability to view all areas up and down the supply chain

Best Practices

the most successful solutions or problem solving methods for consistently and effectively achieving a business objective

Extranets

to coordinate supply chain processes shared with their business partners

Intranets

to improve coordination among internal supply chain processes

Personalization

when a company knows enough about a person's likes and dislikes that it can fashion offers that are more likely to appeal to that person