Supply Chain Management (SCM) and Customer Relationship Management (CRM) vs. Enterprise Resource System (ERP) a Comparative Paper.
Enterprise Resource Planning System (ERP), also referred to as the traditional management system, was generated from the MRP or the Material Requirement Systems. Companies have utilized this system for well over 25 years. In its primary set up, the MRP stores data related to inventory control and production planning. The system is widespread with the use of one its system with the largest market share, the SAP system is the primary base system for over 60 percent of multinational companies. Many companies have been influenced by ERP over the years, including both small and medium size businesses; it is the core of their information processing landscape. Benefits of the ERP Systems:
* Improvement to the quality and efficiency of a firm
* Improvements to Customer Service and Manufacturing outputs. * Upper Level Management can benefit with critical decision making information * Firms become more alert after incorporating the ERP systems. Supply Chain Management Systems (SCM) captures the relationship between a firm and its database of suppliers. The processes allows for records of production, sales of goods and services, delivery of goods. With this process, a firm can improve on lead times, production values and on-time deliveries of goods and services. Strategies are put in place to allow companies to document inventory control data, along with financial resources require to produce quality goods and provide services in an efficient manner. As a collaborative process, SCM depicts activities where sales of products or goods and services are closely linked with consumers. The solution derived from the process allows customers and vendors to connect inventories, order distribution and order production. The processes are distributed between partners who collaborate on different aspect of supply chain management including logistics, order fulfillment. Supply Chain management’s core premise ensures that its distribution channels are reflected cohesively amongst its members. Succinct inventory needs and cost control are among the substantial benefits of SCM. Results are improved profit margins and efficient environmentally friendly transportation. Benefits of SCM System:
* Improvement in Firm / Vendor relationships resulting in opportunities to cut cost through a volume discount. * Improved Collaboration by developing reports to effectively progress goods and services from supplier to distributor. * Improvement in cycle times which allows raw materials to be made available to your firm needs them in order to keep the production flow moving. * Improvement in Conflict resolution; opportunity to better cope with issues on all sides of the production spectrum allows you to be proactive in your responses to problems as oppose to being blindsided by them.
Customer Relationship Management (CRM), in its core element, sync up customers and vendors which ensures that goods and services are ultimately delivered to customers efficiently and in a timely manner. This process can only be embarked upon after the sales group closes if you will the sale; said process integrates sales, customer support, and supply chain management and customer relationship in order to enlarge the operation. The CRM system incorporates data collections in specific databases; in most CRM program, the primary role of each functional session is first and foremost customer driven with sales, marketing and customer service emphasize. The goal is to target the customers with the best attributes to build long term efficient relationships. The key element in the CRM system is providing a function that helps business streamline their processes as it relates to taking care of their customer. Benefits of CRM System:
* Allows the collection of data tht can be shared within the company. * Improvement in...
References: * Financial Decision Making for Managers: Volume 1, 2011
* Supply Chain Management Vs. Customer Relationship Management – htt://www.smallbusiness.chron.com/supply-chain-management-vs-customer-relationship-management.chron.com
* Managing relationships in the Supply Chain
* Studying the Customer Relationship Management: A Case Study at Persian Technology Firm.
An Executive Summary of Supply Chain Management: Processes, Partnerships, Performance
* Douglas M. Lambert
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