invloves the management of information flows between and among stages in a supply chain to maximize total supply chain efectivness and profitability. HELPS WITH COSTS CONTROL
Supply Chain Visibility
View all areas up and down the supply chain.
Five Basic Components of SCM
1. Plan 2. Source 3. Make 4. Deliver (logistics) 5. Return
controls transportation and storage all the way from suppliers to customers
("cutting out the middle-man") example: DELL
SCM and cost control
By using SCM companies are more efficient and effective and therefore save money.
Info Communicated by a typical SCM system
integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential, collaboration, etc.
ERP vs SCM
ERP is primarly intra-organizational (used within a single organization) INTERNAL SCM is largely inter-organizational (used across organizations) EXTERNAL
Transportation Route (Efficient vs Effective)
Efficient: reduced speed of delivery, reduce cost of delivery, ship products to a distributor Effective: increased speed of delivery, increased cost of delivery, ship to customer
occurs when distorted product demand passed from one entity to the next thorguhout the supply chain. These magnified issues can create excess inventory and costs.
the average amount of inventory held to satisfy customer demands between inventory deliveries
Demand Planning Software
Generates demand forecast using statistical tools and forecasting techniques
Customer Relationship Management (CRM)
involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an oganization's profitability.
Benefits of CRM
Provide better customer service
Improve call center efficiency
Cross-sell products more effectively
Helps sales close deals faster
Simplify marketing and sales processes
Discover new customers
Increase customer service
Operational CRM (customer-facing CRM)
supports traditional transactional processing for day-to-day front-office operations or systems the deal directly with the customers. FRONT OFFICE
BACK OFFICE Examples: customer segmentation, customer profiling.
Campaign Management System
guide users through marketing campaigns performing such tasks as campaign definition planning, scheduling, segmentation, and success analysis.
How can CRM increase revenue
PROVIDING PRODUCTS/SERVICES THAT MATCH CUSTOMER WANTS/NEEDS
Improved and more efficient customer service
MORE EFFECTIVE CROSS SELLING
Higher sales closing rates and faster sales closings
Higher customer retention rates
IMPROVED CUSTOMER ACQUISTION
ALLOWS YOU THE OPPORTUNITY TO KNOW WHAT YOUR CUSTOMERS WANT
CRM (three technologies)
helps organizations identify their customers across other applications. ("Asking what happened")
helps organizations segment their customers into categories such as best and worst customers. ("Asking why it happend")
helps organizations make predictions regarding customer behavior such as which customers are at risk of leaving. ("asking what will happen")
Data Mining Techniques
o Association Detection o Cluster Analysiso o Statistical Analysis
a display of information from a variety of sources that has been placed together to aid in decision making.
Why the need for Decision Support System (DDS)
allows managers to examine performance and relationships over the supply chain and among Suppliers, Manufacturers, Distributors, and other factors that optimize supply chain performance.
Interactive Voice Response (IVR)
directs customers to use touch-tone phones or keyboards to navigate or provide information.
automatically dials outbound calls and when someone answers, the call is forwarded to an available agent. COMPANY AUTOMATICALLY CALLING THE CUSTOMER
occurs when a web site knows enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person.
Origins of the Internet
in the 60’s the internet began as an emergency military communications system operated by the Department of Defense. (named “ARPANET”)
Application Service Provider (ASP)
offers access over the Internet to systems and related services that would otherwise have to be located in organizational computers. (“company that hosts your computer applications for you”)
The Internet’s impact on information:
o Easy to compile o Increased richness (worth) o Increased reach o Improved content
How E-business Improves Economic Efficiency
Reduces cost of carrying out transactions. (bc it is fast and cheap, saves everyone money)
When those with access to technology have great advantages over those without access to technology.
agents, software, or businesses that bring buyers and sellers together that provide a trading infrastructure to enhance e business
using the interent to reassemble buyers, sellers, and other partners in a traditional supply chain in new ways
a brokerage that provides trading services to its clients over the Internet. (“simply putting a buyer and seller together”)(“a go-between”)
a broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. [ex. Car Max (Market Maker) vs. Local Car Lot (Broker)](ex. Stock Exchange, processes and rules involved)
Wireless Fidelity (WIFI)
Wireless networking technology that makes use of access points to wirelessly connect users to networks within a range of 300 feet.
this is a set of economic, social, and technology trends that collectively form the basis for the next generation of the internet. (“A two way street”, you can contribute your own ideas/info). Which of the following is not an example of Web 2.0? TIKIS
Reasons for Growth of the WWW
o Microcomputer revolution (Intel; microprocessor) (IBM; PC) o Advancements in networking (broadband access) o Easy browser software (cheap, free, easy to use) o Speed, convenience, and low cost of email. o Web pages easy to create and flexible
the B2B purchase and sale of supplies and services over the interent.
a new way of doing things that initially does not meet the needs of existing customers. It opens new markets and destroys old ones. (ex. Polaroid going bankrupt)
firm which supplies content on interviews, new developments, news stories, etc., that can be employed to make a publication or site more attractive and useful to its readers, as opposed to those who just deliver it to us.
What are companies that use the Internet to distribute copyrighted content, including news, music, games, books, movies, and many other types of info?
What refers to using the Internet to reassemble buyers, sellers and other partners in a traditional supply chain in new ways?
What helps an organization identify its customers across applications?
Which of the following operation CRM technologies does the marketing department typically use?
List Generator, campaign managment, cross-selling and up-selling
Which of the following is one of the CRM business drivers?
What occurs when a website can know enough about a person's likes and dislikes that it can fashion offers that are more likely to appeal to that person?
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