ch 9 terms

touch point

(contact point): is a method of interaction with the customer, such as telephone, email, customer service desk, conventional mail, Facebook, Twitter, website, wireless device, or retail store.

pull-based model

(demand-driven or build-to-order model), actual customer orders or purchases trigger events in the supply chain. **with new flows of information made possible by web-based tools, supply chain management more easily follows a pull based model Ex. Walmart's continuous replenishment system

bullwhip effect

(recurring problem in supply chain management)- in which information about the demand for a product gets distorted as it passes from one entity to the next across the supply chain; a slight rise in demand for an item might cause different members in the supply chain-- distributors, manufacturers, suppliers, secondary suppliers, tertiary suppliers-- to stockpile inventory so each has enough just in case **tamed by reducing uncertainties about demand and supply when all members of the supply chain have accurate and up-to-date information.

safety stock

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

customer lifetime value (CLTV)

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

enterprise software

built around thousands of predefined business processes that reflect best practices

just-in-time (JIT) strategy

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

downstream portion

consists of the organizations and processes for distributing and delivering products to the final customers

supply chain planning systems

enables the firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans. Such systems help companies make better decisions such as determining how much of a specific product to manufacture in a given time period; establishing inventory levels for raw materials, intermediate products, and finished goods; determining where to store finished goods; and identifying the transportation mode to use for product delivery

internal supply chain processes

for transforming materials, components, and services their suppliers furnish into finished products or intermediate products (components or parts) for their customers and for managing materials and inventory

sales force automation (SFA)

in CRM systems help sales staff increase productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services

analytical CRM

includes applications that analyze customer data generated by operational CRM applications to provide information for improving business performance

operational CRN

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

supply chain

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

supply chain execution systems

manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner. They track the physical status of goods, the management of materials, warehouse and transportation operations, and financial information involving all parties. Ex. Warehouse Management System (WMS)

churn rate

measures the number of customers who stop using or purchasing products or services from a company. *It is an important indicator of the growth or decline of a firm's customer base.

upstream portion

of the supply chain includes the company's suppliers, the suppliers suppliers, and the processes for managing relationships with them

demand planning

one of the most important---and complex--- supply chain planning functions, which determines how much product a business needs to make to satisfy all its customers' demands

inefficiencies in the supply chain:

parts shortages, underused plant capacity, excessive finished goods inventory, or high transportation costs are caused by inaccurate or untimely information

push-based model

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

Employee relationship management (ERM)

software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training.

cross-selling

the marketing of complementary products to customers. Ex. in financial services, a customer with a checking account might be sold a money market account or a home improvement loan

Social CRM

tools enable a business to connect customer conversations and relationships from social networking sites to CRM processes. The leading CRM vendors now offer such tools to link data from social networking into their CRM software.

partner relationship management (PRM)

uses many of the same data, tools, and systems as customer relationship management to enhance collaboration between a company and its selling partners. If a company does not sell directly to customers but rather works through distributors or retailers, PRM helps these channels sell to customers directly.