Customer Relationship Management (CRM)

 

Customer relationship management (CRM) is a system which assists managing customer relationships so that organizations are able to manage their customers in a better way through the introduction of reliable systems, processes and procedures. CRM focuses on creating and maintaining lasting relationships of an organisation with its customers. A successful CRM approach is not simply installing and integrating a software package, it also requires reshaping the structure to make it customer driven.

 

When setting up a CRM system, SMEs first need to identify what profile aspects are relevant for their business, such as information needed to serve their customers. As many times unwanted information can be a large aspect of implementing CRM systems.

 

With the help of CRM SMEs can store all the required information of their customer's. And then they can use this information to cater to customers requirements efficiently. A good CRM program can improve customer services in several ways.

 

CRM initially started as a game for large enterprises. Now, CRM vendors are paying more attention to small- and medium-sized enterprises (SMEs).

 

Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose of satisfying customer requirements as efficiently as possible. SCM implies tracking all raw materials and finished products from point of production to point of consumption. Supply Chain Management integrates Supply and Demand within and across companies.

 

To better understand SCM let us take an illustrative example of a company manufacturing knitwear garments. Fabric is manufactured from yarn, which has to be sourced and dyed by the dyeing units. The dyeing units send the dyed yarn to the knitting units to produce the fabric which is then sent to the tailoring units for processing and making into a garment. The garment is checked for quality and then sent for packaging. The goods are then shipped to the buyer. Obviously this is a very complicated chain and a lot may go wrong at any point. But SCM emphasizes that we look at the chain as a whole and try to determine the state of each and every stage at any time during the process cycle.

 

Supply chain event management (SCEM) is another management concept that considers all possible events that can cause disruption in the supply chain. These events and factors are studied and contingency plans are prepared for each one. Obviously this is a very detailed method of planning and demonstrates a considerable commitment to production schedules.

 

SCM concepts are being increasingly used in the industry as more and more people are realizing that it is not enough to merely produce the right products of the right quality; but they have to produce it within the right time without infringement of any deadlines.