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CH 1 Introducation To SCM and SRM and CRM
CH 1 Introducation To SCM and SRM and CRM
Chapter 1
Harmony in Commerce:
Exploring the Interplay of Supply
Chains, Supplier Relations, and
Customer Relations Management
Yasir M. Aljefri
yaljefri@uj.edu.s
Winter 2024
1
2/2/24 Dr. Yasir Aljefri
University of Jeddah
Learning Objectives
ABOUT US
By the end of this chapter, you should be able to:
2
University of Jeddah
04
suppliers to manufacturers to distributors
and information, funds, and products in
both directions
06
suppliers to manufacturers to distributors
and information, funds, and products in
both directions
Information
A vision needs to be explained further A mission needs to be explained
and in detail because
Supplierit is one of the further and in detail because it is one
Customer
main points about your future
Stage Product
of the main points about your future
Stage
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
this session. Funds
this session.
can walk into an Apple store (or a third party store) or go online to purchase a product. Standard
products are stocked at the stores and customers can leave the store with their phone or computer
after paying the appropriate funds. Orders placed online can either be delivered at home or be
picked up at an Apple store. The time taken for home delivery depends on whether the product is
University of Jeddah
Supply
A vision needs Chain Surplus
to be explained further = Customer Value
A mission − to
needs Supply Chain Cost
be explained
and in detail because it is one of the further and in detail because it is one
main points about your future of the main points about your future
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
this session.
The goal of a supply chain should be to grow overall supply
this session.
chain surplus.
and inflation
2/2/24
University of Jeddah
Gross Domestic
Product (GDP) GDP is a total market Value of all final
goods and services produced in an
economy in a given year.
How Supply Chain Generate Include crude oil, natural gas and refining
surplus to the Economy activities.
How Supply
A vision needsChain
to be explained further A mission needs to be explained
Generate surplus
and in detail because it is one of the
main points about your future
further and in detail because it is one
of the main points about your future
to the Economy
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
this session. this session.
Supply Chain
and Saudi Arabi
Oil GDP
• 2023 oil GDP indexing a value of 952,624
million SAR which represent 32% from
A vision needs
the total GDPto be explained further A mission needs to be explained
• Two
and factors
in detail in supply
because it is onechain
of theimpact further and in detail because it is one
mainSAR Values
points about your future of the main points about your future
projection and your best goal. The projection and your best goal. The
Porter's Five Forces Analysis on
company perspective
Organizational canChain
Supply be seen in company perspective can be seen in
this session. this session.
01
Analysis
5
02
05
Rivalry
Among Bargaining
Existing Power of
A vision needs forces
Theses to be explained
shaped thefurther A mission needs
Competitorsto be explained Buyers
and in industry
detail because it is one of
competition the
among further and in detail because it5 is one
PORTER’S
different
main points aboutorganization
your future . of the main points about your future
FORCES
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
Threat of
this session. this session.
Bargaining substitute
Power of products
Suppliers orServices
04
03
2/2/24 Dr. Yasir Aljefri
18
University of Jeddah
Porter’s 5 Forces
Analysis Electrical &
A vision needs to be explained further
and in detail because it is one of the
A mission needs to be explained
further and in detail because it is one
Electronics Retail in
main points about your future
projection and your best goal. The
of the main points about your future
projection and your best goal. The
Porter’s 5 Forces
A vision needs to be explained further A mission needs to be explained
Grocery Retail in
projection and your best goal. The
company perspective can be seen in
projection and your best goal. The
company perspective can be seen in
Cartels Challenges
OPEC
A vision needs to be explained further A mission needs to be explained
and in detail because it is one of the further and in detail• because it is one
It was formed in 1960
• It focuses around
main points
fixing prices about
and your future of the main points about your future
to coordinate oil prices
projection
output andas
as well your best goal. The
trust projection and your best goal.member
among The
companymembers.
between perspective can be seen in company perspective countries.
can be seen in
this session.
• Members of the this session. • However, they do face a
Cartels may decide to Prisoner’s Dilemma
cheat when the price situation
is high by over
Eventually, the supply will exceed the
producing . demand and price will collapse.
+
A vision needs to be explained further A mission needs to be explained
and in detail because it is one of the further and in detail because it is one
main
OPECpoints
agreed about your future
at the beginning of 2019 to of the mainA points
24 OPEC+ about yourtofuture
pleaded cut 1.2 million
extend oil supply cuts until March 2020 barrels a day at the beginning of 2019
projection and your best goal. The projection and your best goal. The
company perspective can be seen in
+company perspective can be seen in
this session. this session.
Objective
$74.04
2M 4M
StateAvision needs toState
be explained further 1 A mission needs to be 2 explained
1
and in detail because
2
it is one of the further and in detail because it is one
main points about your future 4 Mmain points about your future
of the 6M
$132 $184
projection and your best goal. The2M
projection and your best goal. The
$136 $96
company perspective can be seen in company perspective can be seen in
this session.
State State 3 this session. 4
3 4
6M 8M
Graph Model $92 $104
4M $192 $112
How Supply
A vision needsChain
to be explained further A mission needs to be explained
Generate surplus
and in detail because it is one of the
main points about your future
further and in detail because it is one
of the main points about your future
to the Economy
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
this session. this session.
• Planning decisions:
• Which markets will be supplied from which locations
• Planned buildup of inventories
A vision needs to be explained further A mission needs to be explained
• Subcontracting
and in detail because it is one of the further and in detail because it is one
• Inventory policies
main points about your future of the main points about your future
• Timing and size
projection and your best goal. The
of market promotions
projection and your best goal. The
company• Must consider
perspective can bedemand
seen in uncertainty, exchange
company rates,
perspective cancompetition
be seen in
over the time horizon in planningthis
this session. decisions
session.
ISCM
Supply
A visionChain
needs to be explained further A mission needs to be explained
Macroand Processes
in detail because it is one of the
main points about your future
further and in detail because it is one
of the main points about your future
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
this session. this session.
SRM CRM
University of Jeddah
1. Customer Relationship Management (CRM): all processes that focus on the interface
between the firm and its customers
Supply Chain Macro Processes
2. Internal Supply Chain Management (ISCM): all processes that are internal to the firm
3. Supplier Relationship Management (SRM): all processes that focus on the interface
between the firm and its suppliers
ISCM
Supply
A visionChain
needs to be explained further A mission needs to be explained
Macroand Processes
in detail because it is one of the
main points about your future
further and in detail because it is one
of the main points about your future
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
this session. this session.
SRM CRM
Overview
CRM SRM
A vision needs to be explained further A mission needs to be explained
Customer Relationship
and in detail because it Management
is one of the Supplier Relationship
further and Management
in detail because it is one
main points about your future of the main points about your future
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
this session. this session.
Customer Relationship
Management
Customer Relationship Management (CRM) is a
comprehensive business
A vision needs to bestrategy
explained that focuses
further A mission needs to be explained
on building and nurturing
and in detail becauselong-term
it is one of the further and in detail because it is one
relationships withabout
main points customers. CRM involves the
your future of the main points about your future
projection
systematic and your of
management best goal. The
customer projection and your best goal. The
company
interactions perspective
and can bethe
data throughout seen in
entire company perspective can be seen in
this session.
customer lifecycle, with the aim of enhancing this session.
customer satisfaction, loyalty, and ultimately,
the overall profitability of the business.
RFM
Customer
A vision needs to be explained further A mission
Joinerneeds to be explained
Unconvinced One Timer
Relationship
and in detail because it is one of the further and in detail because it is one
Passive
Management
main points about your future
projection and your best goal. The
of the main points about your future
projection and your best goal. The
company perspective can be seen in companyCONTACT
perspective
AND ACTIVATEcanYOUR
be seen in
CUSTOMERS
this session. this session.
New Arrivals
Private offers Welcome Cycle
Samples
Overview
CRM SRM
A vision needs to be explained further A mission needs to be explained
Customer Relationship
and in detail because it Management
is one of the Supplier Relationship
further and Management
in detail because it is one
main points about your future of the main points about your future
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
this session. this session.
Supplier Relationship 1 2
Management (SRM)
Strategy Requirements
Our strategy for sourcing The overall value we need and
informed by wider want to secure from the supply
organizational strategy base
and in detail because it is one of the time on further and inanddetail because it is one
Who we are going to spend intervention deployed with suppliers Arrangements to implement and
within supply chains as required,
collaborative relationships with the critical few and why
appropriate and according to their
manage the SRM approach
main points about your future of the main points them importance about
and the your future
factors that make
suppliers who can make the greatest difference; important
projection and your best goal. The projection and your best goal. The
prioritized against available resources, applied as
company perspective can be seen in company perspective
5
Prioritization
can be seen 4in
Segmentation
appropriate across an entire supply base to
this session. this and session.
How we determine the type How we determine which
nature of intervention for
maximize value to the organization, reduce supply important suppliers
suppliers are important and
what makes them important
Supplier Relationship
Management (SRM) Strategy
Corporate strategy - responds to and determined by end
customers' needs, wants and potential wants as well as
supply base possibilities, and defines overall direction and
the nature of supply and customer base interventions
needed.
Supplier Customer
suppliers?
projection and your best goal. The
and implementing the right
interventions with the right
suppliers to realize our
strategy and the value projection and your best goal. The
Satisfying customers means
determining a value
proposition, shaping
organizational strategy and
proposition we offer. This Supplier Customer then putting in arrangements
WANT TO DO
A vision needs to be explained further A mission needs to be explained
Productive
and in detail because it is one of the further and in detail because it is one
Cost reduction sustainability
main points about your future of the main points
and about your
increased future
quality, efficiency
and effectiveness
projection and your best goal. The projection and your best goal. The
company perspective can be seen in company perspective can be seen in
MUST DO
this session. this session.
Protective
Risk Reduction and
RISK Preventing and ensuring the
business can operate