Analyzing the Role of CRM in Supply Chain Management

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Added on  2022/09/08

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This report delves into the significance of Customer Relationship Management (CRM) within the context of supply chain management. It highlights the benefits of CRM systems, such as enhancing customer relationships, streamlining processes, and improving overall business efficiency. The report examines the impact of CRM on supply chain operations, emphasizing how it facilitates customer engagement, optimizes resource allocation, and provides valuable insights for strategic decision-making. Furthermore, the report compares CRM with other supply chain management techniques, specifically demand forecasting and capacity planning, demonstrating the importance of integrated strategies for achieving optimal business outcomes. The report also explores how CRM systems can improve the efficiency of the supply chain, the collection, organization, facilitation and management of customer information and the security of the data. The report uses the references of Khodakarami and Chan (2014) and Nykamp (2019) to support the findings. This report is helpful for understanding the role of CRM in supply chain management.
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Running head: CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management
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What are the benefits of Customer Relationship Management (CRM) systems in terms of
managing the supply chain?
Customer Relationship Management also known as CRM is the system, which aims to
enhance the relationship with the customers, helps in finding the new potential customers and
tries to win back the previous customers (Nykamp 2019). The system can affect the organization
in the supply chain with the software in helps in collecting, organizing, facilitating and managing
the information of the customers.
Connect with the customers: It supports the business to engage the customers in the
supply chain.
Efficient grow: It helps the business to obtain the higher scale by aligning the business
process and people.
New Insight: Centralising the process data and customer it present new challenges for
translating this in actions.
Safeguarding business: It helps in controlling the business information and the customer
by storing the data securely in cloud server. With the automatic backup and advance security, the
data is secured from any unexpected event.
How does CRM compare with other supply chain management techniques such as demand
forecasting and capacity planning?
Demand forecasting and capacity planning is very vital in any manufacturing business in
which CRM compares with this. Lack in planning can create the chaos for the person, who
develops the custom orders for implementing the new strategies for manufacturing. For obtaining
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the full potential, this is vital for the taking steps for having the achievable and realistic plans in
the business. Supply chain planning system delivers in various form such as the integrated or
standalone ones into the CRM system (Khodakarami and Chan 2014). The systematic process
has the accurate information from the device, which can help in assisting the production and
forecasting planning the future. This helps in minimizing and reducing the potential issues.
Demand forecasting and planning software bring the forecasting power in the CRM process of
the organization. the tool serves the base of the customer more effectively through planning the
inventory and production in sophisticated way, which is the essential part.
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References
Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management
(CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
Nykamp, M., 2019. The Customer Differential The Complete Guide to Implementing Customer
Relationship Management. American Management Association.
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