SOLUTION

SCM, ERP and CRM Systems

Supply Chain Management (SCM)

Philosophy

The philosophy of Supply Chain Management (SCM) involves a concentration of the marketing effort on the consumers and the needs that they have. In SCM, there is an emphasis on an end-to-end value chain from the moment that the goods and services are produced to the moment that after sale services are provided. The emphasis in this approach is the insistence on the nature and understanding of the market rather than simply the product that is to be sold to the consumers (Liboni et al., 2019). Every consumer has their own targets, needs and desired solutions. The business of supply chain management is the exploration of such targets, needs and solutions and then finding the way through which the needs can best be met.

Goals

One of the major objectives of supply chain management is the creation of value. This is to ensure that the business infrastructure available can contribute to the improvement of the value of the business. Secondly, the SCM also aims at building a competitive infrastructure that ensures that the end-to-end supply is not to be interrupted at any given point. The process also aims at leveraging worldwide logistics and by doing so, ease international business process (Liboni et al., 2019). The synchronization of demand and supply is also a fundamental aspect that is served by this supply chain management process. This ensures that there is no deficit in terms of the needs of the consumers and the products that the company or organization produces.

Implementation challenges

In the Supply Chain Management, one of the major challenges is the keeping of excess inventories. In a bid to satisfy the needs of the consumers, there may be a temptation to keep excess inventories which may in effect hurt the overall productivity of the business. In addition, stock-outs may also affect the profitability and customer satisfaction. This happens when there is a shortage of inventories.

CRM

Philosophy

The philosophy of customer relationship management is the assurance that the company will utilize the available tools, techniques, strategies and technologies to develop, retain and acquire customers (Duque et al., 2018). This strategy looks at increased profitability in terms of aligning the interaction with consumers to ensure that it is smooth. When this interaction is made smoother and more efficient, then the likelihood that the business will be more profitable is greatly increased. At the very basic level, this strategy relies on the use of information in a bid to make decisions. This information is obtained in form of data that details the personal information, purchasing history and the typical unique purchasing behavior of different customers. The strategy relies in the in-depth understanding of the consumer behavior to make important decisions.

Goals

The CRM systems are invaluable to organizations in many ways. One of the aims of such systems is to capture new leads and move the organization towards increased sales. This ensures that the process does not suffer the bottlenecks that would ordinarily hinder effective progress in the business. The system also aims at supporting and managing relationships with current customers to maximize their lifetime value for the organization. This also ensures that the organization does not lose some of its most trustworthy and reliant customer base that ought to in essence form the basis of a workable customer-organization relationship. In addition, the system also aims at boosting productivity and lowering the overall costs of marketing and sales. This is also done with the intention of improving the relationships between the customer and the organization.

Implementation Challenges

One of the major challenges in this case is lack of communication. This may leave employees and customers in the dark in terms of the needs and expectations of the business. Lack of technology integration is also a challenge (Duque et al., 2018). This may effectively prevent the business from applying relevant and innovative methodologies to resolve some of its most pertinent problems. Costs can also be a challenge to its implementation as it raises the stakes when it comes to servicing the costs that are necessary for the progress of the business. Planning out the integration needs in advance is also a challenge to implementation especially in instances where this plan is not effectively done.