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172Customer Service Support•Typically includes help desk ticket management software, e-mail, and other interaction tools connected to a fully integrated customer database, which is connected to the SCM and ERP application.Data Mining and Analytics•Data must be collected, sorted, organized, and analyzed for trends, demographics, cross-selling opportunities, and identification of other sales patterns.CRM Components (Cont’d)
173Figure 12-2 CRM Components
174Michael Potter •A business value chain consists of a series of processes or activities conducted by the company to add value to the existing product or service and to provide a competitive advantage in the market.Companies need to understand their supply chain and build the strategy such that its competitive strategy and supply chain strategy are aligned.Supply Chain Management
175Corporations are striving to:•focus on core competencies •become more flexible•reduce their ownership of raw materials sources and distribution channels.All the functions of a company’s supply chain contribute to its success or failureTo achieve strategic fit, a company must ensure that its supply chain capabilities support its ability to satisfy the targeted customer segments.Supply Chain Management (Cont’d)
176•FacilitiesFacilities are the places in the supply chain network where product is manufactured, stored, or shipped.The two major types of facilities are production sites (plants) and storage sites (warehouses).•InformationInformation consists of data and analysis concerning facilities, inventory, transportation, and customers throughout the supply chain.SCM Drivers
177•InventoryInventory is the raw materials, work in process, and finished goods that belong to the company.•TransportationTransportation moves the product between different stages in a supply chain.SCM Drivers (Cont’d)ITECH5402 Enterprise Systems
178Point of ComparisonERPSCMComprehensivenessCovers a wide range of functionalityLimited to specific supply chain functionalityComplexityHighly complexRelatively less complexSourcing tablesRelatively staticRelatively dynamicConstraints handlingAll the demand, capacity, and material constraints are considered in isolation of each otherSimultaneous handling of the constraintsFunctionalityRelatively less dynamic because they are mainly concerned with transaction processing speed and capacityRelatively more dynamic because it performs simulations of transaction adjustments with regard to the constraints in real timeProcessing SpeedRelatively slowerFasterERP versus SCM
179ERP systems help in automating the business processes and enabling reliable information capture and retrieval.SCM systems offer capabilities to integrate various entities that make up the supply chain and facilitate the seamless flow of information between all the supply chain partners.