Moore Medical Corporation

Short Report

Jin Park ECT 589 July 1, 2003

is a multi-channel marketer and distributor of medical goods to physicians. How to allocate their resources to best realize a return on their investment (ROI). Moore’s product line was not broad enough for it to be considered a true “onestop” shop for all the customer’s needs to be filled. Eighty-four percent of Moore’s non-perfect orders stemmed from split shipments and back-orders. -desire to send out the perfect order to every customer in every instance .D.to make the internal processes more efficient by reducing “inventory shelf life. Customer service representatives were taking longer to handle orders because the system was more vertical and difficult to navigate horizontally. ECT 589 Jin Park Page 2 of 5 . This pointed at the lack of an efficient forecasting ERP. They have an ERP system that can not forecast demand because it is reactive to market conditions instead of predicting what demand will be. 7. The ERP system also cumbersome in creating a bid and/or quote for customers and the related information between customers and their quotes. Edwards. 2. Needs a new CRM system and additions to their existing ERP system. Information needed: In order to make the decision of how to manage the investment. Inc. First. new accounts could not be reviewed against existing accounts. schools. 3. 8. emergency medical technicians. 5. Their CRM initiative began to take shape at the beginning of 2001with Clarify Consulting responding to a Request for Proposal and coming in at the best value and service. Account setup was in itself a two-fold problem. The ERP system was not flexible enough to handle Moore’s preferred pricing method. Moore Medical had spent almost $7 million with Arthur Andersen Consulting and an ERP system designed by J. etc. 4.Moore Medical Moore Medical.” both external and internal procedures will need attention. This led to the second problem where information could be entered into the system more than once. correctional facilities. Seeks to optimize it’s supply chain and reduce inventory. we will need to look at what Moore Medical’s critical needs are: 1. Costs By the end of 1999. Unable to determine why churn rate for customers was higher than the industry average. 6. Possibilities: ERP II system while adding the demand planning bolt-on components to their current underperforming ERP system.

the benefit of the cost would be recognized immediately and could increase over time. CRM Information 7. Valued Customer Experience 4. process. to make sure that FAQ’s are accessible and available would be imperative to discovering areas of savings and improving on the relationship with the customer. it would be advisable to start once they are. pursue the development of CRM? What are the components. and benefits? In order for Moore to pursue the development of CRM: 1. CRM Strategy 3. the success of a CRM system depends heavily on the vision of the company and if Moore does not already have these ideas fleshed out. CRM Processes 6. CRM Metrics Courtesy S. information requirements and technology needs must be well defined 1. CRM Technology 8. Next. As Moore encouraged its customer base to migrate to using the web as a transactional channel. CRM processes. 2. Inc. the CEO of Moore Medical. How can Moore Medical Inc. Some immediate business techniques that they could use include: (Lexis-Nexis. Make sure that their Vision and Strategy are in-line with the CRM initiative. View the web site as the primary interface toward the customer and making it easy and convenient to use. How should Linda Autore. or whether another approach was better? Given the current set of tools that Moore has. • Work with manufacturers to become the preferred or excusive vendor of a product or suite of products. determine whether IT was the solution to a particular problem. Chan ECT 589 Jin Park Page 3 of 5 . Organizational Collaboration Collaboration 5..Moore Medical Second. it does not seem possible to measure the effect of IT on the current problem of acquiring and retaining customers. 3. This seems redundant and an area that can be optimized. the sales and support staff was trained in using the site as well. Moore will need to focus both externally (to customers’ values) and internally (organization-wide acceptance) in order to gain momentum. Especially as the amount of sales in the coming years was expected to grow significantly. Also. • An online survey or contest to gather information from customers. Form 10-K) • A forum of customers to retrieve feedback on the current product line. Options: Harnessing the total power of the internet to reach and market to their customers. such as customer acquisition and retention. • Sponsor a focus group to identify what area(s) Moore Medical can improve in to meet customers’ needs. CRM Vision 2.

Susy. Harvard Business School Case. as well as develop their overall business plan in order to harmonize the systems with the company’s vision and goals. adding bolt-on modules to the existing ERP system. Andrew. employee empowerment and compensation. “About Moore. To ensure that the skills. or going some other non-technological route. knowledge and associated behaviors required by the workforce support the enterprise’s CRM strategy. (Lusey) Conclusion Moore Medical has a number of issues it needs to address before it can really make a good decision. the company can focus on what the needs are instead of what they may want. Retaining customers in turn could in turn increase profits for Moore and take care of their high churn rate. Building the system that would accommodate Moore’s needs would take time and investment of dollars. In understanding where the needs are and what the benefit would be in investing in these areas. Some of the critical success factors that directly impact Moore are: 1. rev. 2. the web site will need to be optimized to meet the needs of the customer and free up sales people to actually make sales.com URL: http://www1. 2001. The benefits to implementing the CRM system would improve customer relations and profitability. However. Some of the benefits that Moore could realize include consistency across channels. Finally. The answer could have been found in acquiring a CRM system.com/index. Also. Moore employees will need to be thoroughly trained in using the system and understanding the benefits that come with it. 3. it is imperative that Moore continue to fund the IT side of their business. Moore Medical Corporation. Sept. References Chan. and involvement of collaborative partners.mooremedical. both the short and long-term ROI’s should be realized as long as they stay customer-focused and true to their aim of being a one-stop shop that meets all their customers’ needs.Moore Medical before looking at “what’s out there. Harvard Business School (Cases) and Harvard Busine. To know which strategies will support the corporate goals and to tie measurement processes to them. Customer Relationship Management and Selling Chain Management (PowerPoint presentation).” This way.” MooreMedical. McAfee. 5. Moore must take a hard look at what metrics will need to be collected and analyzed for forecasting into the future and meeting their customers’ needs.cfm? PG=Gen&FN=AboutMoore&CS=HOM ECT 589 Jin Park Page 4 of 5 . 601-142. To change the compensation of the workforce to achieve the desired behaviors and cultural shift and motivate employees to rally behind the strategy. 1-18.

” MooreMedical. The Benefits of Customer Relationship Management (CRM).mooremedical.edu/universe/document? _m=f19800026f9387e66fd70ccef3d79403&_docnum=1&wchp=dGLbVzblSlzV&_md5=5d86a10161c676254c2ee1ebbe59210b Lusey.com. URL: http://80-web. Lexis-Nexis™. Patrick.ezproxy.mooremedical.cfm? PG=Gen&FN=OurHistory&CS=HOM “Executive Summary. URL: http://www1.com URL: http://www1.com/index. URL: http://www.uptrends.cfm? PG=Gen&FN=execsummary&CS=HOM FORM 10-K.com/html/benefits.” MooreMedical.lexisnexis.lib.Moore Medical “Our History.depaul.com.com/index.html ECT 589 Jin Park Page 5 of 5 .

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