Supply Chain Management Vs. Customer Relationship Management | Your Business
Supply chain management, or SCM, and customer relationship management, or CRM, are similar in that they are both technology-driven business processes. Learn how integrating supply chain management (SCM) software and customer relationship management (CRM) software improves supply chain customer. Supply Chain Management (SCM) and Customer Relationship Management ( CRM) Systems - compare the traditional management systems to the above two.
Supply Chain Management Vs. Customer Relationship Management
This is different from the traditional vendor-buyer relationships. Rapid response to inventory needs and special orders, reduced inventory levels and management costs and fewer stock-outs are among the tangible benefits of SCM. For the companies involved, it allows them to manage costs and improve profit margins.
A side benefit of supply chain efficiency is more environmentally friendly transportation practices.
Customer Relationship Management Basics Customer relationship management is a marketing system where companies use databases to collect data on customers to build stronger marketing programs. In a company-wide CRM program, the roles of each functional area are more customer-centric than they were prior to CRM implementation. Marketing, sales and service emphasize targeting the right customers with the best value to build long-term relationships.
IT enables these functions by helping select and manage use of the high-tech infrastructure. Human resources, finance and operations all take on tasks related to customer objectives.
CRM Benefits An overriding objective of CRM is to constantly improve the total customer experience through ongoing research and better systems. Integrate supply chain management and customer relationship management functions to maximize your operations.
Differences Supply chain management personnel ensure that all departments in the business get the raw materials they need to complete their work, while customer relationship management personnel deal with customers to make sure they get the support and services they need.
Supply chain personnel work with vendors, while customer relationship personnel work with customers. For example, at a small veterinary hospital, the supply chain management personnel make sure the veterinarians and technicians have the medical supplies required to conduct routine examinations, perform surgeries and treat medical conditions for clients' animals at the hospital, while customer relationship management personnel work with customers to make sure they get the right medications to administer to their animals at home.
Customer Relationship Management (CRM)
Product Flow The supply chain management function ensures that movement of resources from suppliers to manufacturing occurs smoothly. For example, at a small brochure printing business, supply chain management personnel buy and distribute the paper products and ink required to run the business.
The customer relationship management function takes and transmits orders and ensures that product returns and customer support needs are handled. At the small brochure printing business, customer relationship personnel take orders from customers who want brochures printed by the business.
Supply chain management software applications facilitate planning and track the management of materials. Ideally, these applications share data across the business, including suppliers and business partners to ensure the smooth flow of products from development through delivery.
The Difference Between CRM & SCM | Bizfluent
When customer relationship management personnel take a large order for brochure printing, for example, the vendor supplying the paper gets an alert that the company needs more paper than usual.
This expedites service for the customer. Information Flow Supply chain management professionals use data generated from software applications to ensure their suppliers provide the right raw materials to create products and services.