BAT Chapter 9

supply chain

a network of organizations and business processes for procuring raw materials, transforming materials into intermediate and finished products and distributing products to customers

safety stock

acts as a buffer for the lack of flexibility in the supply chain

analytical CRM

applications that analyze customer data generated by operational CRM apps to provide information for improving business performance; based on data from OCRM, touch points, sources organized in data warehouses or analytics from OLAP, data mining, etc.

customer lifetime value

based on the relationship between revenue produced by a specific customer, expenses incurred in acquiring and servicing the customer, and expected life of the relationship between customer and company

enterprise software

built around thousands of predefined business processes that reflect best practices

Just in time strategy

components arrive exactly at the moment they were needed and finished goods would be shipped as they left the assembly line

touch point

contact point; a method of interaction with the customer

operational CRM

customer facing applications; sales force automation; call center and customer service support, marking automation

employee relationship management

deals with employee issues related to customer relationship management; setting objectives, performance management/compensation, employee training

pull based model

demand driven, build to order model; actual customer orders or purchases trigger events in the supply chain

demand planning

determines how much product a business needs to make to satisfy all its customers' demands

supply chain planning

enable the firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing; help companies make better decisions like determining how much of a specific product to manufacture in a given time period

social CRM

enables a business to connect customer relationships from social networks to CRM processes

partner relationship management

enhances collaboration between a company and its selling partners; provides ability to trade information and distribute leads and data about customers

financial and accounting processes

general ledger, accounts payable, accounts receivable, fixed assets, cash management and forecasting, product cost accounting, cost center accounting, asset accounting, tax accounting, credit management, and financial reporting

business intelligence

help managers obtain more meaningful information from large amounts of data; include tools for flexible reporting, ad hoc analysis, interactive dashboards, what if scenario analysis, and data visualization

sales force automation

helps staff increase productivity by focusing on most profitable customers (good candidates for sales and services)

manufacturing and production processes

includes procurement, inventory management, purchasing, shipping, production planning, production scheduling, material requirements planning, quality control, distribution, transportation execution, and plant and equipment maintenance

human resources processes

including personnel administration, time accounting, payroll, personnel planning and development, benefits accounting, applicant tracking, time management, compensation, work force planning, performance management, and travel expense reporting

bullwhip effect

information about the demand of a product gets distorted as it passes from one entity to the next across the supply chain; may cause distributions, manufacturers, secondary suppliers and tertiary suppliers to stockpile inventory in order to have enough product; tamed by reducing uncertainty about supply and demand when all member of the supply chain have accurate and up to date information

enterprise solutions/suites, E business suites

make CRM, supply chain management, and enterprise systems link together and to customers/suppliers

supply chain execution systems

manage the flow of products are delivered to the right location in the most efficient manner

cross selling

marketing of complementary products to customers

churn rate

measures the number of customers who stop using or purchasing products or services from a company; indicates growth/decline of customer base

sales and marketing processes

order processing, quotations, contracts, product configuration, pricing, billing, credit checking, incentive and commission management, sales planning

push based model

production on master schedules are based on forecasts or best guesses of demand for products and products are pushed to customers

marketing

provide capabilities for capturing prospect and customer data, product and service information, and qualifying leads for target marketing, scheduling and tracking marketing mail; analyze marking and customer data, identifying profitability, designing products and services

customer service

provide information and tools to increase the efficiency of call centers, help desks and customer support staff; assign and manage service requests

Enterprise Systems

systems based on a suite of integrated software modules and a common central database; collects data from many different divisions and departments in a firm and a large number of key business processes in manufacturing and production, finance and accounting, sales and market, and human resources; makes data available for applications that support internal business activities

internal supply chain

transforms materials, components, and services furnished by their suppliers into finished products or intermediate products (components or parts) for their customers and for managing materials and inventory

-expensive to purchase and implement -require fundamental changes for technology and business operations -operating issues

what are the challenges with enterprise applications