Primary Users and Primary Business Benefit of CRM, SCM and ERP

Describe the primary users and primary business benefits of Customer Relationship Management (CRM). Supply Chain Management (SCM) and Enterprise Resource Planning (ERP) application.

CRM - Customer Relationship Management

Primary Users

The primary Users of CRM which is Customer Relationship Management is the Sales, Marketing and Customer Service departments, the reason being for this is that CRM is more related to interaction with customers, which is more Front Office Work than it is to Back Office Work like analytics or strategic planning, but this is not to say that CRM does not contribute information for Back Office work. CRM Focuses on customer satisfaction .

Primary Business Benefits

Among the benefits of using CRM is that by going through the CRM process and assessing customer attitudes, responses, wants, they are more able to make Sales forecasts, Sales strategies and Marketing Campaigns. How they achieve this is by weighing in the relevant information that can be ascertained through CRM, they can then make accurate guesses and also tailor their campaigns. They can also better plan their use of finances because they can make accurate forecasts of their sales therefore, they are now able to properly allocate resources to handle situation.

SCM - Supply Chain Management

Primary Users

The main users of Supply Chain Management are Customers, Resellers, Partners, Suppliers, Distributors. The main reason for this is that these parties are the ones that are involved in the Supply Chain, what this means is that they have a vested interest in knowing where the goods are, when will it arrive, and if there are any complications arising . SCM also helps to ensure optimal level of stocks for those parties that are involved in storing the goods, and also ensures that there will always be enough goods as needed.

Primary Business Benefits

The three main benefits of SCM are that they can better assess Market Demand, they can identify resource and capacity constraints and also perform Real-time scheduling. What Market Demand means in this situation is that by assessing the flow of goods within the supply chain and how much is being sold, we can assess market demand and adjust accordingly to demands in that area. What identifying resource and capacity constraints mean, the company or member of supply chain can better identify the resources that are unavailable during that period. What this means is they can better understand the limitations that they are facing at that particular time and place and they can better manage their resources there because of it. What Real-time scheduling means is that by having up to date information about the supply chain, we are able to schedule the arrival and delivery of goods in real-time, therefore providing less questions to arise when asked when the goods will arrive, in terms of business this will help business know when their stocks will arrive and therefore allow them to effectively plan the goods they need to last until the next shipment, what this means for customers is that they can track their orders and this increases their satisfaction with company service.

ERP - Enterprise Resource Planning

Primary Users

The primary users of ERP are Accounting, Finance , Logistics and Production. To understand why they are the primary users, we must first get a grasp of ERP which means a system to collect, update and maintain system wide information. In accounting, this is translated to knowing who needs to pay what and how much, in Finance it helps to have this steady source of information to find out how they can use to finance activities of their company, for Logistics, we can ascertain where goods are and such, ERP for Logistics is very closely related to SCM because it deals with movement of goods. In Production, by using ERP, every department knows how much goods is produced and for what cost, this ties in to other departments who can calculate how much they can sell for, earn, and how much has been financed to produce said goods.

Primary Business Benefit

The primary Business Benefits of ERP is forecasting, planning, purchasing, material management, warehousing, inventory and distribution.This infers that ERP has a hand in most of the major activities in company. How it helps in forecasting, is that by knowing the exact resources in company , and how much is used, we can forecast how much needs to be used later, and how it relates to planning is by knowing details, and our capabilities, we can then plan within the means of the company to achieve more things. In material management, through ERP and knowing where and when goods are at, they are more capable of locating where it went missing . In terms of inventory, through having a constant and updated ERP system, it will be easier for the company to track inventory. And last, in terms of distribution, by having accurate information about customers and what they have ordered we are able to make sure that the delivery of goods are to the right person and on time, other than that through using ERP, we can also tell said customer if their goods are in stock or they have to wait for next cycle.

INFORMATION TECHNOLOGY ADVANCE DRIVING SCM

SPEED
-New form of server, telecommunications, wireless application, & software.
-Enable company to perform activities that were once ever thought possible.
-Company ability to satisfy continually changing customer requirement efficiently, accurately & quickly.

THREE FACTORS FOSTERING SPEED.
1.Serving customer is the best, most efficient & most effective manner has become critical and information about issue such as order status, product delivery, delivery schedule, and invoice has become a necessary part of the total customer service experience.
2.Information is crucial to manager’s abilities to reduce inventory and human resources requirements to a competitive level.
3.Information flows are essential to strategic planning for and deployment of resources.

EXAMPLES OF COMPANY THAT APPLY SPEED.

Maxis, Celcom, Digi, McDonald and Kentucky Fried Chicken (KFC).