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Enterprise resource planning (ERP) is a company-wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores. An ERP system has a service-oriented architecture with modular hardware and software units or "services" that communicate on a local area network. The modular design allows a business to add or reconfigure modules (perhaps from different vendors) while preserving data integrity in one shared database that may be centralized or distributed What does this software do? Take the activities of a typical company or 'Enterprise', its purpose can be loosely described as 'to manufacture or procure products for sale'. These products may be tangible or intangible, but basically the company must 'Plan' and 'Control' the use of its entire resource base to meet these objectives. That is what 'E.R.P. software' does, it helps the managers and staff of an enterprise to manage its resources to manufacture/procure the products it sells within one software package. The single software package 'integrates' its elements or modules into one seamless package to control the enterprise activities. The most common activities being Purchasing, Manufacturing, Sales and Accounting.
from acceptance through fulfillment The revenue cycle. and costing (what the vendor invoiced) The accounting for all of these tasks: tracking the revenue.Advantages: y y y y y y y y Integration among different functional areas to ensure proper communication. example customer . This eliminates the problem of synchronising changes and can reduce the risk of loss of sensitive data by consolidating multiple permissions and security models into a single structure. ERP Systems centralize the data in one place. missions. The system may be too complex measured against the actual needs of the customers. then over time "dirty data" will reduce the reliability of some applications. A company can achieve minimum standards. Many of the integrated links need high accuracy in other applications to work effectively. chains-of-command. financial data. Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage. switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level). from invoice through cash receipt Managing inter-dependencies of complex processes bill of materials Tracking the three-way match between purchase orders (what was ordered). Once a system is established. inventory receipts (what arrived). . and consolidation into a single enterprise may yield limited benefits. Disadvantages: y y y y y y y y Customization of the ERP software is limited. etc. Some large organizations may have multiple departments with separate. productivity and efficiency Design engineering (how to best make the product) Order tracking. ERP systems can be very expensive (This has led to a new category of "ERP light" solutions) ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and business process of some companies²this is cited as one of the main causes of their failure. cost and profit at a granular level. independent resources.
Customer Relationship Management (CRM) CRM (customer relationship management) is an information industry term for methodologies. 2 takes standard E. 2.R.T. outstanding deliveries and orders. Why We Need CRM Software? CRM software helps companies improve their relationships with their customers. An example of this closer relationship is that an enterprise will allow customers to directly interact with its computer system so allowing them to place orders and investigate the status of its account. Due to the level of system integration needed between enterprises to achieve E. the preserve of large companies with the I. this remains.P. CRM software is constantly evolving along with newly defined CRM processes.E.P to the Next Generation: E. and extends it by providing for closer relationships between an enterprise and its customers and suppliers. The Examples of CRM System Softwares y y y y y SAP CRM Microsoft Dynamics CRM Oracle Siebel CommenceRM SageCRM . for the moment.P. software.R.P. providing greater insight into how to attract and retain customers.R.R. Suppliers can be permitted to monitor stock levels and suggest when items need replenishing. and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. resources to make it possible.
Analysis ² Key CRM data can be analyzed in order to plan target-marketing campaigns. Data warehouse software is helping companies collect vast quantities of data from multiple. phone calls. and judge the success of CRM activities (e. and to use customer contact information for targeted marketing. information about customers and customer interactions can be entered. etc. advertising. finance. manufacturing. revenue. such as suppliers/vendors and retail outlets/distributors. billing. trade associations). manufacturing. CRM goals are to improve services provided to customers. processes.. The first trend is the availability of robust. and strategies implemented by an organization to unify its customer interactions and provide a means to track customer information. online services etc.g. stored and accessed by employees in different company departments. Evolution of CRM Three converging trends have enabled the emergence of CRM applications as a major force in the market place. Back office operations ² Operations that ultimately affect the activities of the front office (e. It involves the use of technology in attracting new and profitable customers. human resources. y y y y y y . marketing.planning. It is used to support these processes.Concept of customer relationship management y CRM is a combination of policies. profitability). y y y CRM includes many aspects which relate directly to one another y y Front office operations ² Direct interaction with customers. heterogeneous sources. This external network supports front and back office activities.g. e-mail. industry networks (lobbying groups.g. face to face meetings. and customer service applications. while forming tighter bonds with existing ones. conceive business strategies. number and types of customers.) Business relationships ² Interaction with other companies and partners. such as accounting. sales force automation.. scalable decision support technology. maintenance. e. market share.
rather than a limited perspective offered by departmental applications. What can we do by CRM Systems? y y y y y Capture & Track Customer Requests Manage Tasks & Workflow Assess Customer Satisfaction Provide Timely FAQ Responses & Email Acknowledgements Report Performance SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland. and finished goods from point of origin to point of consumption (supply chain).one marketing helps drive an analysis of customer share. The second trend is the emergence of front-office applications. The third trend is the recognition that a new. Another definition is provided by the APICS Dictionary when it defines SCM as the "design. One-to. distributors. enterprise wide view of the customer. execution. 1996). It tends to focus on the sales and the marketing departments. work-in-process inventory. Supply Chain Management spans all movement and storage of raw materials. building a competitive infrastructure." . individual customer-focused marketing model is needed to maintain a competitive advantage. rather than on their products.y y y y y y y This provides the technological foundation for building a consolidated. synchronizing supply with demand. and monitoring of supply chain activities with the objective of creating net value. rather than market share. This has made it easier for companies to identify and track customers. planning. control. and measuring performance globally. sales force or suppliers. The emergence of the one-to-one marketing phenomenon has helped companies to have their marketing activities focus on the customer. leveraging worldwide logistics.
including TOFC (trailer on flatcar) and COFC (container on flatcar). The effect is to increase the number of organizations involved in satisfying customer demand. direct shipment. intermodal transport. thus improving inventory visibility and the velocity of inventory movement. Supply chain activities can be grouped into strategic. closed loop shipping. location and network missions of suppliers. e. LTL. or 3PL). tactical. airfreight. decentralized or shared). while reducing management control of daily logistics operations. and the movement of finished goods out of the organization and toward the end-consumer. replenishment strategy (e. distribution centers. cross docking. mode of transportation. contract carrier. pull. parcel. The CSCMP has adopted The American Productivity & Quality Center (APQC) SUPPLY CHAIN MANAGEMENT PROBLEMS Supply chain management must address the following problems: y Distribution Network Configuration: number.g. delivery scheme. they reduce their ownership of raw materials sources and distribution channels. motor carrier.ACTIVITIES/FUNCTIONS Supply chain management is a cross-function approach including managing the movement of raw materials into an organization. and transportation control (e. Distribution Strategy: questions of operating control (centralized. Less control and more supply chain partners led to the creation of supply chain management concepts. certain aspects of the internal processing of materials into finished goods. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). push or hybrid). common carrier.. warehouses.g.g.. private carrier. e. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively.. including truckload. SCOR is a supply chain management model promoted by the Supply Chain Council. and operational levels. pool point shipping. owner-operated. DSD (direct store delivery). Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. As organizations strive to focus on core competencies and becoming more flexible. ocean freight. production facilities. The purpose of supply chain management is to improve trust and collaboration among supply chain partners. y .. railroad. cross-docks and customers.g.
etc. however. there will be an increase in inventory holding costs which may increase total logistics costs. a full truckload of a product is ordered to reduce transportation costs. For example. information and funds across the supply chain. including demand signals. It is therefore imperative to take a systems approach when planning logistical activities. If. including raw materials. . full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. inventory. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy. The flow is bi-directional. Inventory Management: Quantity and location of inventory.y Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Information: Integration of processes through the supply chain to share valuable information. Trade-offs may increase the total cost if only one of the activities is optimized. forecasts. transportation. Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain. work-in-progress (WIP) and finished goods. y y y Supply chain execution means managing and coordinating the movement of materials. potential collaboration.
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