Exercise 22: Differentiate between software systems

Customer Relationship Management (CRM)

CRM is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them

a. providing services and products that are exactly what your customers want
b. offering better customer service
c. cross selling products more effectively
d. helping sales staff close deals faster
e. retaining existing customers and discovering new ones

Supply Chain Management (SCM)

There are five major functions in Supply Chain Management software. Most of the companies requires only some component in their business, so the software for SCM is usually fragmented.

According to Wailgum (2007), the five components are:
a. Plan

i. planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.

b. Source

i. develop a set of product pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships

ii. processes for managing their goods and services inventory, including receiving and verifying shipments, transferring them to the manufacturing facilities and authorizing supplier payments.

c. Make

i. schedule the activities necessary for production, testing, packaging and preparation for delivery.

d. Deliver

i. coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.

e. Return

i. Supply chain planners have to create a responsive and flexible network for receiving defective and excess products back from their customers and supporting customers who have problems with delivered products.


Conclustion:
To sum up, both software performing different functions. CRM trends to collect information on customer behavor and habits for designing strategy for selling products while SCM trends to plan for the production, testing and delivery of the products.

Reference:

Wailgum T. (March 06, 2007), CRM Definition and Solutions, Retrieved 19 May 2009 from http://www.cio.com/article/40295/CRM_Definition_and_Solutions

Wailgum T. (March 19, 2007), Supply Chain Management Definition and Solutions, Retrieved 19 May 2009 from http://www.cio.com/article/40940/Supply_Chain_Management_Definition_and_Solutions

Business Link (2007), Customer relationship management, Retrieved 19 May 2009 from http://www.businesslink.gov.uk/bdotg/action/detail?r.l1=1073861197&r.l3=1075422922&r.lc=en&type=RESOURCES&itemId=1075422931&r.l2=1075422920&r.s=sc#