Chapter 8

• What is SCM and what are the benefits are of effectively managing the supply chain?

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. When managing the supply chain effectively, companies can have precise purchasing. They can also produce and store at optimum levels with lower costs. At last, SCM ensures that all the work is completed on time.

• What are the  processes that drive the planning and execution of the supply chain?

Demand planning and forecasting, distribution planning, production scheduling, and inventory and safety stock planning.

• What are some emerging trends in SCM?

There are three main emerging trends in SCM - customer portals, supplier portals, and business to business marketplaces.

• What is CRM and its benefits and importance to the organization?

Customer Relationship Management (CRM) is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer satisfaction, loyalty, and advocacy. Its benefits are quality adnd efficiency, decrease in overall costs, and increase profitability. CRM is important to companies as a whole and their successes. Keeping CRM department up to date with new strategies and using new technology will keep companies current and profitable. As companies keep up good CRM they will have improved relationships with their customers and in turn will see sales increase for their company. Keeping on top of companies’ CRM will insure that companies move forward and increases profit as well as make sure that customers are satisfied and happy.

• What might be some ethical concerns relative to CRM?

To implement CRM, extensive information about the customer must be collected and stored. The two concerns with regard to this system are customer privacy and the accuracy of the information collected.