Organization can undertake high-profile strategic
initiative including:-
- - Supply Chain Management (SCM)
- - Customer Relationship Management (CRM)
- - Business Process Reengineering (BPR)
- - Enterprise Resource Planning (ERP)
n Basic Compenents of Supply Chain Management
- Supply chain strategy- Strategy for managing all resources to meet customer demand
- Supply chain partner- Partner throughout the supply chain that deliver finished products, raw materials and services.
- Supply chain operation- Schedule for production activities
- Supply chain logistics- product deliver process
Effective and Efficient SCM System
- Decrease the power of its buyer
- Increase its own supplier power
- Increase switching costs to reduce the threat of substitute products 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 system can enable an organizatiom to:
- Identify types of customers
- Design individual customer marketing campaign
- Treat each customer as a individual
- Understand customer buying behaviors
- Re engineering the Corporation – book written by Michael Hammer and James Champy that recommends seven principles for BPR
- Finding Opportunity Using BPR
SUPPLY
CHAIN MANAGEMENT
Supply chain management is management of information
flows between and among activities in a supply chain to maximize total supply
chain effectiveness and corporate profitability.
BASIC COMPONENTS OF SUPPLY CHAIN MANAGEMENT
Effective and Efficient of SCM System
Customers Relationship Management (CRM)
Its 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 enterprise wide level
CRM can enable an organization to :
Business Process Re engineering (BPR)
It is a standardized set of activities that accomplish a specific task, such as processing a customer’s order
The analysis and redesign of workflow within and between enterprises
The purpose of BPR is to make all business processes best in class
A company can improve the way it travels the road by moving from foot to horse and then horse to car
BPR looks at taking a different path, such as an airplane which ignore the road completely
Enterprises Resource Planning (ERP)
It integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations
Keyword in ERP is “enterprise”.
ERP systems collect data from across an organization and correlates the data generating an enterprise wide view
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