The intent of this report is to analyse the practice of supply chain management in National Australia Bank (NAB). The sources of information for this report are from academic readings, internet news and NAB websites. Logical thinking and supply chain process mapping are the tools used to analyse NAB supply chain management practices. The raw material and products chosen to analyse is money. The analysis concluded NAB money product supply chain is a special one with both upstream and downstream considered ‘personal and business banking customers’, and therefore both are treated as customers. NAB home loan product is chosen as an example to illustrate the importance of aligning customer needs and values with the core competencies NAB can offer. This report will then talk about NAB’s award winning Customer Relationship Management software and how CRM helps NAB to service its customers better by segmenting them into different groups as not all customers require same level of service. Finally the importance of risk management for NAB during the recession is discussed, along with the current pressure to focus on the consumer and NAB growing customer dissatisfaction. Recommendations for improving and monitoring these issues are then discussed.
Table of Contents
Table of Contents3
2NAB Supply Chain5
2.1Supply Chain Management Importance6
2.1.1Losing Customer = Losing Fund Provider6
2.1.2Substantial Profit from Customers6
3Operations - Home Loan Example7
3.1Understanding Customer Needs and Delivering Customer Values7 4Banking Customer Relationship Management10
4.1Data Mining and Customer Segmentation10
5Supply Chain Issues and Recommendations13
5.1Current Economic Issues - Recession 13
5.2Consumerism and NAB’s Customer Dissatisfaction 14
National Australia Bank (NAB) is a financial institution within the NAB Group, providing a comprehensive range of banking and financial services in Australia. It is one of the biggest banking service providers along with ANZ, Commonwealth Bank and Westpac.
The report discusses the supply chain of NAB, with the focus on money being the primary raw material and product within the channel. It will first describe the supply chain of NAB, and discuss the importance of supply chain management within the organisation. The features of NAB’s operations will then be highlighted using the home loan product as an example, and how they use efficient CRM software to interact with supply chain partners. Finally issues such as operating in a recession and within the current consumerism movement will be discussed, with recommendations of how to cope with these issues suggested.
NAB Supply Chain
A supply chain is an integrated process wherein a number of entities work together in an effort to achieve a desired outcome (Beamon 1998). It typically has a focal company which convert the raw material into something more useful, upstream supply chain which is the suppliers and downstream supply chain which is its customers. The NAB supply chain diagram is as figure 2.1 below:-
NAB is a financial institution, with the raw material being cash or money. The upstream supply chain consists of business banking customers e.g. corporations, government bodies, trading companies and etc, personal banking customers or retail customers and lastly international or domestic funding providers e.g. overseas banks. NAB takes this cash or money and “add value” to it by lending out most of this money in the form of cash, insurances, loans, wealth management package or other financial products to business customers and personal banking customers. NAB then charges interests and fees on these products which bring in profits and...