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  1. 1. VAN services • Inter-network connections. • International connections. • Message storage & logging. • Privacy , security & reliability. • Message validation. • Charges • Software & consultancy.
  2. 2. Supply Chain Management(SCM) • The concept of SCM having the right product in the right place at right time. • This is an integral part of business to business framework. • It transforms the way companies deals with the supplier, partners and customers. • It helps companies to exchange information in an effort to reduce cycle times to have quicker fulfillment of orders & improve customer services.
  3. 3. Contd… • SCM is the game of 4c:  Collaboration  Coordination  Cooperation  Connectivity
  4. 4. Goal of Supply Chain Management • Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed: – In the right quantities – To the right locations – At the right time In order to – Minimize total system cost – Satisfy customer service requirements
  5. 5. Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation CostsInventory CostsManufacturing Costs
  6. 6. PlanPlan SourceSource Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation CostsInventory CostsManufacturing Costs MakeMake DeliverDeliver BuyBuy
  7. 7. Contd… • A set of approaches used to efficiently integrate – Suppliers – Manufacturers – Warehouses – Distribution centers • So that the product is produced and distributed – In the right quantities – To the right locations – And at the right time
  8. 8. The Importance of Supply Chain Management • Dealing with uncertain environments – matching supply and demand – Boeing announced a $2.6 billion write-off in 1997 due to “raw materials shortages, internal and supplier parts shortages and productivity inefficiencies” – U.S Surgical Corporation announced a $22 million loss in 1993 due to “larger than anticipated inventories on the shelves of hospitals” – Hewlett-Packard and Dell found it difficult to obtain important components for its PC’s from Taiwanese suppliers in 1999 due to a massive earthquake • Demand forecasting practices – Min-max inventory management (reorder points to bring inventory up to predicted levels)
  9. 9. Contd… • Lead time – Longer lead times lead to greater variability in estimates of average demand, thus increasing variability and safety stock costs • Batch ordering – Peaks and valleys in orders – Fixed ordering costs – Impact of transportation costs (e.g., fuel costs) – Sales quotas • Price fluctuations – Promotion and discount policies • Lack of centralized information
  10. 10. 10 Supply Chain Management – Key Issues • Overcoming functional silos with conflicting goals Purchasing Manufacturing Distribution Customer Service/ Sales Few change- overs Stable schedules High inventories High service levels Regional stocks SOURCE MAKE DELIVER SELL Low pur- chase price Multipl e vendors Low invent- ories Low trans- portatio n
  11. 11. 11 Supply Chain Management – Key Issues ISSUE CONSIDERATIONS Network Planning • Warehouse locations and capacities • Plant locations and production levels • Transportation flows between facilities to minimize cost and time Inventory Control • How should inventory be managed? • Why does inventory fluctuate and what strategies minimize this? Supply Contracts • Impact of volume discount and revenue sharing • Pricing strategies to reduce order-shipment variability Distribution Strategies • Selection of distribution strategies (e.g., direct ship vs. cross-docking) • How many cross-dock points are needed? • Cost/Benefits of different strategies Integration and Strategic Partnering • How can integration with partners be achieved? • What level of integration is best? • What information and processes can be shared? • What partnerships should be implemented and in which situations? Outsourcing & Procurement Strategies • What are our core supply chain capabilities and which are not? • Does our product design mandate different outsourcing approaches? • Risk management Product Design • How are inventory holding and transportation costs affected by product design? • How does product design enable mass customization?
  12. 12. 12 Supply Chain Management – Benefits • A 1997 PRTM Integrated Supply Chain Benchmarking Survey of 331 firms found significant benefits to integrating the supply chain Delivery Performance 16%-28% Improvement Inventory Reduction 25%-60% Improvement Fulfillment Cycle Time 30%-50% Improvement Forecast Accuracy 25%-80% Improvement Overall Productivity 10%-16% Improvement Lower Supply-Chain Costs 25%-50% Improvement Fill Rates 20%-30% Improvement Improved Capacity Realization 10%-20% Improvement
  13. 13. Customer Relationship Management(CRM) • Any application or initiative designed to help an organization optimize interactions with customers, suppliers, or prospects via one or more touch points for the purpose of acquiring, retaining customers.
  14. 14. Introduction of e-CRM • eCRM is the application of CRM to an e-business’ strategy – Personalization/customization of customers’ experiences and interactions with the e-business • Recall: – Relationship between merchant and customers is distant – Less expensive to keep customers than to acquire new ones – Repeat customers have higher lifetime value than one-time buyers
  15. 15. TRADITIONAL FORM OF CRM • The existing CRM solution are not capable enough to satisfy and retaining customers and also there is no integrated tool which connect the Central sales management, regional sales office, customers care, sales, sales distribution, regional sales team in effective manner. • A 360 view requires the automation to bring together all the data concerning a customer. This implies that organizations have to change the form :
  16. 16. TRADITIONAL CRM EMERGING SOLUTION Mass production Product focus Product focus Customer focus 1way communication Interactive communication Response time Real time responses
  17. 17. Present CRM alternatives • Present CRM solutions are offered by the host of vendors that are to a great extent not industry specific. While some vendors, who have come up with industry specific solutions, the broad model around which the CRM solutions are built, remain the same. A typical offerings of the current CRM solution (such as Siebel, oracle apps or etc.) vary form solution to solution
  18. 18. Present CRM alternatives A typical offerings of the current CRM solutions offerings comprise of : • Customer developments • Service center • Sales management & support • Market Analysis • Internet, telemarketing product & brand management
  19. 19. Present CRM alternatives • Field sales , Tele sales • internet sales • Call centers • Field service • Internet customer service • Service interaction center(call centers) • Business partners collaborations
  20. 20. Technology impact on CRM Technology is touching the way, we live our lives, expectations of individuals is changing continuously and PCs and internet revolutionizing our lives in 21st century . Some clear trends that can be clearly seen are : • More and more individual will like to be treated as one single person rather then as among the masses . • People wish products and services round the clock.
  21. 21. EMERGING IMAPCT OF E-COMMERCE ON CRM In a fast changing internet world there are very clear trends that are emerging : • Speed: people expect service at fast speed • Increase of global market place: more & more people , communities across the globe are able to build relationships. • Around the clock availability • expansion of partners : internet offers the ability for the organizations and people alike to partner with suppliers and customers alike across the globe.
  22. 22. eCRM • In simplest terms e-crm provides company to conduct interactive, personalized and relevant communications across the globe with their customers by utilizing the traditional and electronic channels both. • It adheres to permission based practices, respecting individual's preferences regarding how and whether they wish to communicate with you and it focuses on the understanding how the economics of the customers relationships affects the business.
  23. 23. Contd… • e- CRM is the electronic based version of CRM. The user of the a e-CRM solution uses the sources of the internet to increase the relationship with the customer. • Web based CRM can easily handle the relationships between Central sales management, regional sales office, customers care, sales, sales distribution, regional sales team.
  24. 24. Why employ e-CRM ? • To optimize the value of the interactive relationships • Enable the business to extends its personalized reach in the hand of customers • Coordinating marketing initiatives across the all customers channels • Leverage the customer`s information for more effective e-marketing and e-business • Focus the business on improving the customers relationship and earning a greater share of each customer`s business through consistent measurement, assessment and actionable customer strategy.
  25. 25. The six “E`s” of e-CRM
  26. 26. Contd… • Electronic channels: new electronic channels such as web and personalized e- messaging have become a medium for fast and interactive , economic communication , challenging company to keep pace with the increased velocity. • Enterprise : through e- CRM the company gains the mean to touch and shape a customers experience through sales, services and corners offices whose occupants need to understand and assess the customers behavior.
  27. 27. Contd… • Empowerment: it must be structured to accommodate consumers who now have the power to decide when and how to communicate with the company, through which channel , at what frequency. An e- CRM must be structured to deliver timely pertinent, valuable information that consumers accepts in exchange of his/her attention.
  28. 28. Contd… • Economics : an e-CRM strategy ideally should concentrate on the consumer economics, which drives smart asset allocation decisions, directing efforts at individuals likely to provide the greatest return on customer- communication initiatives. • EXTERNAL INFORMATION : the e-CRM solution should be able to gain and leverage information from such sources as third party information networks and webpage profiler application.  Acquisition (increasing the no. of customers)  Expansion (increasing the profitability by encouraging customers to purchase more products and services)  Retention (increase the amount of time in which the customers stays with company, making a long-term relationship)
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