SUPPLY
CHAIN MANAGEMENT
·
Supply chain management (SCM) - involves
the management of information flows between and among stages in a supply chain
to maximize total supply chain effectiveness and profitability.
·
Four basic components of supply chain
management include:
i.
Supply
chain strategy- strategy for managing all resources to meet
customer demand.
ii.
Supply
chain partner- partners throughout the supply chain that
deliver finished products, raw materials, and services.
iii.
Supply
chain operation- schedule for production activities.
iv.
Supply
chain logistics- product delivery process.
· Effective
and efficient SCM systems can enable an organization to:
- Decrease
the power of its buyers.
- Increase
its own supplier power
- Increase
switching costs to reduce the threat of substitute product or services
- Create
entry barriers thereby reducing the threat of new entrants
- Increase
efficiencies while seeking a competitive advantage through cost leadership.
·
Effective and efficient SCM systems effect on
Porter’s Five Forces
ORGANIZATION’S SUPPLY CHAIN
CUSTOMER
RELATIONSHIP MANAGEMENT.
·
Customer relationship management (CRM)- involves
managing all aspects of a customer’s relationship with an organization to
increase customer loyalty and retention and an organization’s profitability
·
Many organization , such as Charles Schwab
and Kaiser Permanente, have obtained great success through the implementation
of CRM systems
·
CRM is not just technology, but a strategy,
process, and business goal that an organization must embrace on an
enterprisewide level.
·
CRM can enable an organization to:
-identify types of customer
- design individual customer marketing
campaigns
-treat each customer as an individual
-Understand customer buying behaviors.
CRM overview
BUSINESS
PROCESS REENGINEEERING
·
Business process- a
standardized set of activities that accomplish a specific task, such as
processing a customer’s order
·
Business process reengineering(BPR)- the
analysis and redesign of workflow within and between enterprises
-make all business processes
best in class.
·
Reengineering the corporation-written by
Micheal Hammer and James Champy. Seven principles:
FINDING
OPPORTUNITY USING BPR
- Progressive insurance
mobile claims process
·
Types of change an organization can achieve
along the magnitudes of change and the potential business benefits.
ENTERPRISE
RESOURCE PLANNING
·
Enterprise resource planning(ERP)- integrates
all department and functions throughout an organization into a single IT
systems so that employees can make decisions by viewing enterprisewide
information on all business operations.
·
ERP is
enterprise.
it can collect data from across an organization and correlates the data generating an enterprisewide view
