1. Learning Outcome
1.1 List and describe the four basic components of supply chain management.
1.2 Explain customer relationship management systems and how they can help organizations understand their customers.
1.3 Summarize the importance of enterprise resource planning systems
1.4 Identify how an organization can use business process reengineering to impove its business
2. Strategic Initiative
- Supply Chain Management (SCM)
- Customer Relationship Management (CRM)
- Business Process Reengineering (BPR)
- Enterprise Resources Planning (ERP)
> Organizations can undertake high-profile strategic initatives
2.1 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 :
- Supply chain strategy - strategy for managing all resources to meet customer demand
- Supply chain partner - partners throughout the supply chain that deliver finished products, raw materials and services
- Supply chain operation - schedule for production activities
- Supply chain logistics - product delivery process
Wal-Mart and Procter & Gamble (P&G)
> Effective and efficient SCM systems can enable an organization to :
- Increase efficiencies while seeking a competitive advantages through cost leadership
- Create entry barriers thereby reducing the treat of new entrants
- Increase switching cost to reduce the threat of substitute products or services
- Increase its own supplier power
- Decrease the power of its buyers
> Effective and efficient SCM systemseffect on Porter's Five Forces
2.2 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 organizations, 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 customers
- Design individual customer marketing campaigns
- Treat each customer an an individual
- Understand customer buying behaviors
> Business process - a standardized set of activities that accomplish a specific task, such as processing a costumer's order.
>Business process reengineering (BPR) - the analysis and redesign o workflow within and between enterprise.
- The purpose of BPR is to make all business processes best-in-class
- Reengineering the Corporation book written by Michel Hammer and James Chaampy that recommends seven priciples for BPR.
2.3.1 Finding Opportunity Using BPR
- A company can improve the way it travels the road by moving from foot to horse and then horse to car
- BPR looks t taking a different path, such as an airplane which ignore the road completely
- Progressive Insurance Mobile Claims Process
- Types of change an organization can achieve, along with the magnitudes of change nd he potential business benefit
2.3.2 Pitfalls of BPR
- Fails to keep up with competitors.
2.4 Enterprise Resource Planning (EPR)
> Enterprise resources planning (EPR) - integrates all departments and functions throughout an organization into a single IT system so that employees can make decision by viewing enterprisewide information on all business operations
> EPR systems collect data from across an organization and correlates the data generating an enterprisewide view.
that all for chapter 3.
thank you ;)
