Assignment on E- Procurement and Supply Chain

Running head: E- PROCUREMENT AND SUPPLY CHAIN
E- Procurement and Supply Chain
Name of the student:
Name of the university:
Author note

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Answer to question 1
Social media is considered as the most important tool in the in the marketing arena. Social
media marketing is a type of marketing done through internet by using the social networking
websites as the marketing tools. The aim is to provide such substances which will share the
social network for the exposure of the company’s brand and reach out to a wider audience. The
marketers build up clear strategy which takes into consideration the attainable goals, the target
groups and knowledge about the competitors. Social media helps in the identification if the target
customers understand their needs and desires, link the company website to their profile, provide
valuable content and create an integrated social media strategy (Tuten & Solomon, 2014). The
contemporary social media campaigns are a coordinated marketing effort of the business owners
to associate with the business objective by using the popular social media platforms. The
campaigns differ from the efforts taken by the social media daily because of the target,
measurability and an increased focus. To get success in the social media campaign, the
businessmen need to select the most effective platforms and determine the short and long term
goals with respect to the specific social media channels. This helps in promoting customer
involvement and it is ensured that the content is enough to create a voice and value for the
product or brand. The businessmen should keep it in mind that the more they will reach out to
the customers; it will be a success of their social media marketing. The various social media
platforms include- Facebook, Twitter, LinkedIn, Pinterest, Instagram and Google+.
The internet users have paid attention about the methods that are used b the marketers who
offer custom ads. The companies gather a lot of information about the people in different parts of
the world (Ashley & Tuten, 2015). This information is used for placing the ads which can tend to
be interference in someone’s privacy. The controversy mostly centers on the data collected

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using third- party cookies which helps in the accumulation of a complete record of the user’s
browsing history. It can be clearly considered as an invasion in privacy because the information
includes personal data such as name, address and phone numbers of the users. The inclusion of
third- party cookies draw a considerable amount of negative attention though all of them are not
harmful. It is sometimes argued by the marketers that the people should not have any problem in
compromising with their privacy for the sake of advertising. They state that with a bit of
violation in their privacy they are only paying the price for the services offered. They also
mention that if the personal data is not collected then the ads will not be as personalized as they
want and worthwhile which will result in the loss of revenue and they will have to pay more for
the content (Chaffey, 2016).
Advertising of small business through social media websites pose a threat on the private life
of the customers. For instance, if the marketer uses his client’s words along with a picture on the
Facebook page for the promotion of the business, it can be a violation of privacy. This is because
the company is not authorized to use the client’s picture without his consent. By doing so, the
client has every right to file a case against the company as it is a burning issue of the world. The
invasion of privacy can include a number of things such as intrusion upon seclusion, public
disclosure of private facts, third party disclosure, misusing someone’s name, picture or likings or
giving false impression about someone. The people who are engaged in violating the privacy of
internet users do so for the promotion or development of their new products. They match up to
the choice of the users by keeping a close look on their social media behavior (Hult & Sjölund,
2017).
The common ways in which the marketers invade social media privacy are-

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Data scraping: this process keeps a track on the online activities of the users to gather personal
data and use those and other conversations from the social network, job websites and other
online forums. At some point, the marketers argue that the users willingly share their personal
details online; no one has asked them to share their information. The information that is collected
use the personal details to make advertisements specific for the products. In the year 2011, a
media research company named Nielsen Co., was caught for misusing the data collected from the
online forums of PatientsLikeMe where people share their personal and emotional problems.
This is a terrific example of the violation of web privacy (Chang, Yu & Lu, 2015).
Facebook apps leaking personal data- Facebook is such a social networking platform that
uses most of the personal details starting from pictures to phone numbers. Many users have
complained a million times that their personal information have been leaked by Facebook.
Facebook takes consent from the user at the time of installation of the app by clicking “Allow”
and then the marketers get hold of that personal information to use them in the product
promotion (Tiago & Veríssimo, 2014). The marketers do not announce that they are using the
data and the users do not have any clue of it and that is how their online privacy is at stake. The
apps of Facebook such as Family tree and Farmville are accused of stealing personal
information.
Online social tracking- most of the internet users are unaware of the fact that by using the
‘like’ or ‘tweet’ button, the marketers can easily use the social media websites for the purpose of
tracking (Leung, Bai & Stahura, 2015). They mainly work with cookies which make tracking
easy in different websites. In this way, the interests and online shopping behavior can be easily
scanned by the marketers by invading the online privacy law. There are other tracking tools

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which keep a track of the kids and teens and their online activities. Snazzyspace.com is one such
website which keeps a track on the kids’ use internet.
There is a striking example which shows that social media is violating privacy of the
internet users in the name of personalized service. When people were expressing their protests on
equality rights by uploading the profile pictures of red and white equal signs, it had raised
awareness about the support. Social media has the most effective power of disseminating
information faster than any other media (Rodriguez, Peterson & Ajjan, 2015). In the same way
the ALS ice bucket challenge can be a good idea of marketing but it failed to raise awareness
about the disease or the risk associated with it. Google the technological giant was also accused
of violating the user privacy. They were said to enroll the users in Google Buzz even after they
logged out. Moreover, those enrolled users were not informed that their emails could be exposed
to public. These are some of the many examples of violation of online privacy policy.
There is not much a user can do to prevent his data from being stolen online. The reason
behind this can be that the users are sometimes lured into certain activities from where they
cannot step back. They fall into the trap of the marketers where they have to share their personal
details unknowingly. The opponents can contradict by saying that the violation of privacy is for
the users’ sake only, for their own benefit, for their easy access to the products. Then there arises
a question if it could not be done in other way without intervening in the users’ online privacy
(Felix, Rauschnabel & Hinsch, 2017). Of course, there are other ways to get information about
the users’ buying pattern such as conducting an online survey or carrying out a market research
by segmenting the target group. Social media marketing can still be used without hampering the
online privacy of the users. The ads can be made in certain way on the basis of hypotheses by

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observing the behavior of people. The users can also put a check on their online activities to
minimize the spread of their personal information.
Personalized services are offered to the customers to show that they are cared and valued.
It can be done without hampering their online privacy and using the personal information. It can
be said that the user’s intention to use personalized services is affected by his trust and privacy
concern. Other factors to be considered here are that the online marketers can work on their
abilities to get customer information by building up trust. At this situation, it is a critical point
that the marketers realize and assess the different values put by the users to enjoy different types
of personalization (Zhu & Chen, 2015).
Answer to question 2
Customer relationship management (CRM) is a term that involves the practices, technologies
and the strategies that are used by the companies for the organization and analysis of the
customers. This process takes pace throughout the life cycle of the customers with the aim of
developing business relationship with the customers. This system is used for gathering
information about the customers in different medium such as the company website, telephone,
direct mail, live chat, social media and marketing materials. It is responsible for giving the
company detailed information about the customer’s personal information, his purchasing record,
concerns and preferences related to buying (Boulding et al., 2013). The system uses software
which can combine the information of customer in a database for easy accessibility and
management of the businessmen. This software is also responsible for tracking various customer
interactions and arranging the workflow processing such as alerts, calendars, and tasks. It also

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gives businessmen the ability to scan activities based on the productivity and performance that
are logged within the system (Mithas, Krishnan & Fornell, 2013).
The popular features of the CRM system include marketing automation capabilities for
repetitive tasks. These tools influence the marketing efforts to customers at various points in
their lifecycle. For instance, when the prospects of sales are indulged within the system it can
automatically drive the marketing materials through email or in social media with the aim of
transforming the sales lead to a potential customer. The system is also responsible for imitating
the efforts put by the salesman and the customer. The system will be able to help in simplifying
the task by keeping a follow up of both the sides (Ryals, 2013). Then there is contact center
automation which helps in solving the customer problems and also spreads information. The
tools that are used in combining the system can also deal with the customer requests and order
for cutting down time as well as costs of the customer service processes. Few systems of CRM
use technology that can help in geographic marketing too on the basis of the location set by the
customers along with the location set by GPS. This technology helps in finding sales prospects
on the basis of location. The key vendors of customer relationship management include Oracle,
Microsoft, SAP and Salesforce.com.
It is always considered as a challenge to boost customer experience. For enhancing the
business, the marketers always have to take care of increasing the customer base. Expansion of
the customer base is only possible when there is a strong balance in the relationship between the
organization and the customers. This in turn results in the maintenance of a strong CRM for
increasing the customer base. There are certain factors which help in determining the CRM of an
organization. These factors are increasing the customer retention, orders per customer each year,
average investment per order, cross sales and up sales, referrals of new customers by previous

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customers and renewal of previous customers (Srinivasan & Moorman, 2013). It should be taken
into consideration that all the factors mentioned above can be attained by keeping increased costs
from compensating the increased sales. All these factors if implemented in the CRM program
will be able to give a competitive advantage if the competitors are using the same system. The
effectiveness of these parameters goes further than just gaining competitiveness. Customer
expectations, perceptions, emotions, customer history, belief and communication can be
considered as those parameters which exceed beyond gaining competitive advantage
(Khodakarami & Chan, 2014).
The CRM software for business contributes to the organization by updating its order process,
properly managing the potential clients and a careful dealing of the project scheduling. CRM is
regarded as the best option for organizations which are looking forward to win over the
competitive advantage over the competitors. This is because it provides a competent and useful
way of consolidating the operational activities in the organization without compromising on the
quality of service. This system is responsible for scanning, recording, keeping a track and
reporting on all the probable aspects, clients, activities of the stakeholders and transactions. It
helps the business with the information that is easily available, perfectly upgraded so that they
can respond at an instant for working with extreme efficiency (Krasnikov, Jayachandran &
Kumar, 2013).
If the competitors are using the same system then there is a chance that the CRM would
provide a competitive advantage. This can be possible by providing the sales team with the
required tools for success. The workflow can be smoothened and the details of sales process can
be secured with the appropriate CRM. The sales team needs to convert into sales the quotes,
orders and invoices within the CRM. This helps in the ease of the CRM features by enabling

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better communication and removing errors along with doubling the data entry. When the sales
manager can observe all the implemented sales activities inside the CRM then the sales team will
be able to spend their time in selling products and services rather than reporting time (Shapiro,
Dupree & Keys, 2017).
Another way of winning over competitive advantage is by providing personal service. When
it is known to everyone about the promises made and the orders given, the ongoing projects and
the upcoming ones, the customer expectation is increased. It does not matter which department is
making the call, it must be known to them what is currently going on by previewing the previous
interactions. There are full featured CRMs such as the Results CRM which keeps all the
departments bound together and makes it easily accessible for the customers. With this system
the information can be easily gathered which will help in establishing and retaining wonderful
relationships. Customer satisfaction can also be ensured by providing constant service delivery
and there should not be any loop hole. Such consistent services at the right time can be assured
with the help of a proper CRM who will enhance the business processes. For instance, in the
Result CRM, building up of a library of customized process templates automatically allocates
tasks to the right people at the correct time (Srinivasan & Saravanan, 2015).
The developed and matured products of CRM are not limited to Contact management for the
whole business. It is the responsibility of CRM to connect the departments of sales, finance,
billing and service. By making CRM the central location for the company with broad contacts
such as QuickBooks, Outlook, Constant Contact and Excel spreadsheets. By making CRM the
central location the company can spread important information across the organization and the
double- entry can be reduced with the procedure of both way communications among the
products. The most important part in this respect is that the most recent and updated information

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is available here. In this rapidly moving world the customers are always expecting quick and
instant response. The shift time and location do not matter nowadays and the CRM should offer
the appropriate information about the company which is needed for production from any place.
The role of CRM is not dependent on the size of the organization. Whether the company is large
or small the main priority is to stay in the competition, boost productivity and revert to requests
or opportunities at the best possible speed with a lot of efficacy. If a company is still yet to use
the CRM system then there is a chance that it is losing on the opportunity to create a distinctive
position for itself in the competitive market. It should not be too late before the company
considers this process for its own benefit (Choudhury & Harrigan, 2014).
With a good CRM system, the company can gain real competitive advantage by containing
and gathering data. With the information gathered, it becomes easy to create proper business
intelligence. For instance, if a customer places order every month but is yet to place so for the
current month, so it will require attention on the part of the company. The probable reason
behind this can be the approach by a competitor due to which the customer has changed his
buying pattern. When the company is not sure of the reason, the CRM system should start acting
fast in this situation for improving their sales management by looking at the behavior and retain
the existing customers. But reacting to situations is not enough for a CRM system. The sales
management team with the executives can make use of the information to disclose the
opportunities. For instance, the company is aware of the fact that a client sells product B but
purchases only product A and not B. This can be set as an opportunity for cross-selling the
products and make a personalized offer such as integrating the deliveries in order to save on the
costs (Carmen & Marius, 2016). At the same time, it can be observed that the client purchases a
range of other products. If it can be foreseen that a crisis in the materials can increase the price,

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then the company can increase the value of relationship with the customer by requesting him to
save money and secure the supply of material by buying at the present time. If there is an excess
supply of the product, the benefit lies with the CRM which will permit in finding out the
potential buyer of the product and thus allows connecting with those clients efficiently with the
suggestion of taking the extra. Again the obvious benefit of CRM includes the empowerment of
the process of sales management to ensure the resources are being used properly with the right
activities.
Answer to question 3
Supply chain is the most important part for any activity. It includes most of the processes that
tend to be facing unethical behavior. The supply chain managers are responsible for promoting
ethical practices. There is constant pressure on the companies to make supply chain more ethical.
Therefore the companies are assessing the supply chain which is being questioned from the
environmental standards to use safe and secured products and treat the workers well. There are
certain companies which are using corporate responsibility codes and there are others who are
using new technologies for establishing transparency (Ferrell et al., 2013). When these
companies are putting their effort to overcome the challenge they have to come across several
obstacles which includes far- flung supply chains and the different regulation standards of
different countries. The consequences in such failures are really high because the bad news
spread about a company’s supply chain will hamper the reputation of the company. This in turn
will lead to the reduction in sales and the change in investors which will spread negative review
about the company in the market.

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With the change in the working environment, it is not possible for any company to carry out
an ethical global supply chain. Even if they start following, it will not take them too long to shift
from the process. Due to the constant changes, the company will not be able to maintain ethics in
the process of supply chain management at a later stage (Stevens & Johnson, 2016). The scenario
can be support with the instance of a Virginia- based company, Lumber Liquidators. This
company was ruling the world few years ago being the largest retailer of hardwood flooring in
North America. Their net sales were around $1 billion and the stock price had increased to more
than $35 per share. But the disaster came in 2015, when a CBS news program broadcasted that
the laminated floors made in China contained formaldehyde. Formaldehyde is a carcinogenic
element which was used at a rate more than the allowed limit. At this point, the US Centers for
Disease Control and Prevention reported that the materials used in flooring could lead to an
increase of 6- 30 cases of cancer in every 100000 people (Monczka et al., 2015).
In an interview to CBS, the founder and chairman of the company mentioned that the
Chinese mills who supplied the materials of the floor were supposed to adhere to the Californian
laws and policies. A detailed investigation on this matter was carried out by CBs and it was
found out that the statement was totally false. The verification was proved to be correct because
the employers of the company said so and therefore CBS had exposed the truth in the open light.
This breached the ethical policies of supply chain management. When the report as published by
CBS, the company had suffered a loss 13.7% when in the same year it had a plunge in the share
price of less than $13 before the news came forward. The CEO of the company had resigned
after this mishap took place (Alexander, Walker & Naim, 2014).
Ethical behavior and social responsibility are something which is considered as more
important than financial necessities in a business. Although technology has developed to a great

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extent, the global supply chain is based on the interaction among the people which builds up
ethical issues across the various stages. The cause for this uncertainty in preferring the values is
because of the fact that corporations only pay attention towards containing cost. Cost is the only
key driver behind the unethical behavior of the companies. As per the case of Lumber
Liquidators, this report on the violation of ethics of supply chain, the company further suffered a
loss of $19.8 million (Schilling, 2016). The situation further worsened when the company was
hit with $13.1 million in the form of legal penalties when it was found out that the Chinese
suppliers had imported wood from the eastern Russia forests. Those forests are a habitat of the
endangered species such as Amur leopards and Siberian tigers. It is a disruption of the ecological
balance to damage the natural habitat for serving the commercial purpose and thus an invasion of
the supply chain ethical policies. They were accused of disputing the initial reports founded by
CBS. In May 2015, they stopped selling of all the laminated flooring materials that were made in
China. They also agreed to pay $2.5 million to the Californian legal body as settlement charges
related to the safety of their flooring but denied any kind of wrongdoing (Simangunsong et al.,
2016).
The process of supply chain consists of a number of links that facilitate the movement of
products to the consumers from the producers. These numbers of steps are also responsible for
acquiring costs of the different entities involved. With the involvement of several parties in the
process of supply chain the question of being fair and ethical is always at the top. Tension is
created in the supply chain because of the understanding of a fair game in between the parties.
Even if something is found to be legitimate in the course of the business but then also it can be
considered as unfair by others. If there is a need for assessing the case of supply chain by
different companies without getting into any kind problem that can arise with its failure, Lumber

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Liquidators is the most striking example. This company is probably the first one to be
interrogated regarding its ethics in supply chain. The companies that were once considered
responsible for the happenings of cross- border suppliers facilities were rechecked and verified
for the increasing movement to make ethical global supply chains (Harbert, 2016). Many
companies have also developed programs and code of conduct related to corporate social
responsibility programs. Other companies are also on the verge of adopting new technologies for
increasing clarity and transparency by utilizing radio frequency tags to store information on the
validity of a product.
As compared to the effort put by the company Lumber Liquidator their graph of progress
is moving slowly. The reason behind this can be regarded as the complexity involved in the task.
The supply chains are longer and more widely spread on a global scale and therefore the chances
of problems occurring have also increased. Another challenge that can be considered in the
process of supply chain is the varying norms and policies in various countries (Johnson, 2014). It
becomes difficult for the companies when they purchase materials and resources in some other
countries where the laws are different than their own country. There is another problem apart
from the already mentioned one. It can be asked that what can be considered a benchmark of
ethics in the process of supply chain management. The term is not just limited environmental
issues such as pollution or conservation of energy but a lot more than that. It covers a range of
social issues such as animal and human rights and food security issues. Then there are universal
issues such as human trafficking and slave labor which has a large impact on several industries.
The problems are tend to be increasing instead of reducing because there is a lack of clear
and codified global regulations. The companies’ own code of ethics might not match with that of
the suppliers’ or the manufacturers’ country code. The governments of California, USA and UK

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have already adopted the rules and regulations necessary for the companies to reveal what steps
are they using for investigating their supply chains and rectification of the problems (Pierce et
al., 2017). The companies often need to balance one ethical consideration against another. If it is
seen that there are poor working conditions then it can be assumed that the governments
probably do not have health and safety regulations which keeps a track of the companies’ deeds
or does not utilize them. The contemporary meaning of supply chain has changed beyond the
source and movement of materials, parts and labors which process into the finished product. It
now covers everything from the base to middlemen to the intermediaries up to the final product.
Earlier the supply chains used to be linear starting from the raw materials and moving up to the
finished product. At present, it has taken a circular shape where the business finds out the
designing and manufacturing of products in such a way that the raw materials can be recycled,
reused and recovered. Therefore the ethics associated with supply chain needs to be taken proper
care as it can damage the reputation, affect sales which results in the loss of interest of the
investors (Offermann, 2017).

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