JAMNALAL BAJAJ INSTITUTE OF

MANAGEMENT STUDIES

Supply Chain and Logistics Management

Semester VI

MMM / MFM 2019-22

Customer Relationship Management

Session 15
Date: 30 / 31 March 2022
“On average, sales and marketing costs average
from 15%-35% of total corporate costs. So the effort
to automate for more sales efficiency is absolutely
essential. In cases reviewed, sales increases due to
advanced CRM technology have ranged from 10% to
more than 30%.”

-HARVARD BUSINESS REVIEW

The Relationship Between Customers and
the Supply Chain
◦ Customers are one of the most critical parts of any supply chain.
Without customers, even an enterprise with a well-established
supply system will lose profit. A supply chain decision-making
process is influenced by the values and opinions held by
consumers to have a satisfying relationship with your business.
◦ Supply chain buyers need to procure resources from the most cost
effective suppliers so they can offer the best value to clients.
They’re always on the hunt for new partners who provide high
quality products and services that suit customer tastes. A disaster-
resilient supply chain is also a major goal for its managers to
protect what customers value the most about your business.
◦ The problem with incorporating customer demands into your
supply chain is that customer expectations vary. A one-size-fits-all
approach doesn’t work and enterprise may end up permanently
damaging customer satisfaction. A competitive company has to
provide plenty of choices among its offerings for its end-
consumers.
◦ In order to build and maintain profitable, long-term relationships
with clients, you have to keep track of all relevant information.
◦ This is how investing in CRM becomes an advantage.
◦ Customer relationship management centers on paying close
attention to your market and learning who your consumers are.
Aside from managing sales and marketing automation, CRM
systems are built to gather customer information: who they are,
what they need, and how to reach out to them.
◦ For example, you want to know when your customers are likely to
purchase your goods so you can adjust your next shipment of raw
materials. Through a CRM platform, you can send an email survey
to your customers and keep all the data you receive in one
database.
◦ You can also utilize CRM technology to forecast future customer
purchases or alert you if a client is planning to move to a rival
company.
◦ The predictive analytics component of modern CRM platforms
can even recommend actions that respond to upcoming trends.
◦ By extending your knowledge of the customer, CRM can help
you bridge the supply chain directly with the market.
CRM
What is CRM?
◦ CRM stands for Customer Relationship Management.
◦ CRM is combination of a variety of strategies used for managing
the companies relationships and interactions with potential
customers.
◦ It helps improve profitability.
◦ CRM helps in understanding the customer's needs and behaviors.
◦ It defines appropriate actions for retaining customers such as
special incentive programs.
◦ It involves a process of continuously gathering data at all
customer points and then turning that data into knowledge for
building more profitable customer relationships.
◦ It also applies to the process of managing customers, suppliers,
vendors, and other stakeholders, through a buying lifecycle.
◦ CRM is also the integrated approach of managing and
coordinating customer interactions across multiple channels.
◦ CRM can be used to run the sales promotions under any specific
customer groups using the business analytics tools.
Features of CRM
◦ CRM fulfills customer needs effectively and maintains a long-term
deal.
◦ CRM is customized by an organization to manage and administrate
its customers and vendors in an efficient manner to achieve
excellence.
◦ It considers customer satisfaction.
◦ It focuses on customer loyalty, retention and complaints.
◦ It delivers better information and services regarding all the products
and brands to the customer.
Importance of CRM
◦ CRM foresees customer needs effectively and helps increases
business.
◦ CRM includes a historical view and analysis of all the acquired
customers.
◦ It contains each and every bit of customer details making it easy to
track customers and determine the most profitable ones.
◦ It is very cost effective.
◦ It reduces the process time and increases the productivity.
Understanding CRM
◦ The CRM system provides the ability to the organization for managing the customer orders, delivery of products, revenue,
marketing, products information along with strategies for reaching the target market in timely and efficient manner.
◦ The supply chain integrates the CRM for making the database of customer information and collecting valuable data to show
the current needs and wants of the customers.
◦ The CRM ensures good customer relationships as the right product for the right customer at the right time in right quantity,
condition, and cost.
◦ The CRM segments the each of the customer needs and supports the relationship marketing/cross selling.
◦ The CRM integration in supply chain leads to forecast the customer behavior and retains customers by analyzing the
likelihood of customer purchases.

◦ A well-executed CRM can lead to strategic partnerships between the organization and its suppliers.
◦ Example: McDonald's and The Coca-Cola Company have had a symbiotic relationship since 1955. McDonald's uses Coke's
international offices when setting up new franchises,
◦ Coke uses a particular stainless-steel delivery truck designed explicitly for McDonald's, and the two companies have been
running promotions together for over 20 years.
◦ While this partnership was forged before the advent of CRM automation, it is an enduring example of how sharing customer
data with a supplier can inform supply chain decisions and create a successful model for both organization and supplier.
Stages of CRM
CRM is often broken down into three aspects: Strategic, Operational, and Analytical.

Strategic:
◦ The “Strategic” aspect considers various methodologies to determine customer value and how to develop customer experiences.
◦ This includes defining strategically significant customers and how to create their ideal customer experiences.
◦ This is valuable information for supply chain managers as they consider inventory and logistics.
◦ For example, many strategically significant customers value 2-day shipping; a crucial role for a supply chain.

Operational:
◦ Operational Customer Relationship Management is the automation and integration of sales force, marketing, and customer service.
When companies are considering integrating a CRM software program, they benefit from including supply chain managers in their
decisions.
◦ CRMs can track an overwhelming number of metrics and supply chain managers can use this information to create a valuable supply
chain that is customer-focused and prepared to respond to demands.

Analytical:
◦ Analytical CRM refers to how an organization uses relevant data and transforms that data into action.
◦ Supply chains can use these valuable insights about customers to meet their business objectives.
Supply Chain Macro Processes
All supply chain processes can be classified into the three
macro processes:
◦ Customer Relationship Management (CRM) : all processes
at the interface between the firm and its customers
◦ Internal Supply Chain Management (ISCM) : all processes
that are internal to the firm
◦ Supplier Relationship Management (SRM) : all processes
at the interface between the firm and its suppliers
These three macro processes manage the flow of information,
product, and funds required to generate, receive, and fulfill a
customer request.
Notice that all three macro processes are aimed at serving the
same customer.
For a supply chain to be successful, it is crucial that the three
macro processes are well integrated.
Supply Chain Macro Processes
Supplier Relationship Management. SRM processes. between the ISCM and CRM macro
processes.
Those processes focused on the Internal Supply Chain Management.
interaction between the enterprise and Customer Relationship Management.
Includes all processes involved in
suppliers that are upstream in the supply
planning for and fulfilling a customer
chain
order.
The processes that take place between an
Key processes:
◦ ISCM processes: enterprise and its customers downstream
Design Collaboration
◦ Strategic Planning in the supply chain
◦ Source
◦ Demand Planning ◦ Key processes:
◦ Negotiate
◦ Supply Planning ◦ Marketing
◦ Buy
◦ Fulfillment ◦ Selling
◦ Supply Collaboration
◦ Field Service ◦ Order management
There is a natural fit between ISCM and ◦ Call/Service center
There must be strong integration
Supply Chain Macro Processes in a Firm
Customer Relationship Management (CRM) :
◦ The CRM macro process aims to generate customer demand and facilitate the placement and tracking of orders. It includes
processes such as marketing, pricing, sales, order management , and call center management..
◦ Example: At an industrial distributor level ( W. W. Grainger), CRM processes include the preparation of catalogs and other
marketing materials, management of the website, and management of the call center that orders and provide service .

Internal Supply Chain Management (ISCM):

◦ The ISCM macro process aims to fulfill demand generated by the CRM process in a timely manner and at the lowest cost.
◦ ISCM processes include the planning of the internal production and storage, preparation of demand and supply plans, and fulfillment
of actual orders.
◦ Example: At W W Grainger, ISCM processes also include planning of the location and size of warehouses; deciding which product to
carry at each warehouse; preparing inventory management policies; and picking, packing, and shipping actual orders.

Supplier Relationship Management (SRM) :

◦ The SRM macro process aims to arrange for and manage supply sources for various goods and services.
◦ SRM processes include the evaluation and selection of suppliers, negotiation of supply terms, and communication regarding new
products and orders with suppliers.
◦ Example: At W. W. Grainger, SRM processes include the selection of suppliers, sharing of demand and supply plans with suppliers,
and the placement and receipt of replenishment orders
Components of CRM
At the most basic level, CRM software consolidates
customer information and documents it into a single CRM
database so business users can more easily access and
manage it.
Over time, many additional functions have been added to
CRM systems to make them more useful. Some of these
functions include recording various customer interactions
over email, phone, social media or other channels;
depending on system capabilities, automating various
workflow automation processes, such as tasks, calendars
and alerts; and giving managers the ability to track
performance and productivity based on information logged
within the system.
1. Marketing automation. CRM tools with marketing
automation capabilities can automate repetitive tasks to
enhance marketing efforts at different points in the
lifecycle for lead generation.
For example, as sales prospects come into
the system, it might automatically send email marketing
content, with the goal of turning a sales lead into a full-
fledged customer.
2. Sales force automation. Sales force automation tools track
customer interactions and automate certain business
functions of the sales cycle that are necessary to follow
leads, obtain new customers and build customer loyalty.
3. Contact center automation. Designed to reduce tedious
aspects of a contact center agent's job, might include
prerecorded audio that assists in customer problem-
solving and information dissemination.
Various software tools that integrate with the
agent's desktop tools can handle customer requests to cut
down on the length of calls and to simplify customer
service processes. Automated contact center tools, such as
chatbots, can improve customer user experiences.
Components of CRM
4. Geolocation technology, or location-based services.: Some CRM systems include technology that can create geographic
marketing campaigns based on customers' physical locations, sometimes integrating with popular location-based GPS
(global positioning system) apps. Geolocation
technology can also be used as a networking or contact management tool in order to find sales prospects based on a location.
5. Workflow automation. CRM systems help businesses optimize processes by streamlining mundane workloads, enabling
employees to focus on creative and more high-level tasks.
6. Lead management. Sales leads can be tracked through CRM, enabling sales teams to input, track and analyze data for leads
in one place.
7. Analytics. Analytics in CRM help create better customer satisfaction rates by analyzing user data and helping create targeted
marketing campaigns.
8. Artificial intelligence. AI technologies, such as Salesforce Einstein, have been built into CRM platforms to automate
repetitive tasks, identify customer-buying patterns to predict future customer behaviors and more.
9. Project management. Some CRM systems include features to help users keep track of client project details such as
objectives, strategic alignment, processes, risk management and progress.
10. Integration with other software. Many CRM systems can integrate with other software, such as call center and enterprise
resource planning (ERP) systems.
Why You Should Link CRM with SCM
A well-managed CRM platform can go beyond serving your sales force, marketing team, and customer service reps.
Linking CRM with supply chain processes can help you tap into rich insights about your market that will provide you competitive growth.

By linking your supply chain with CRM technology, you can:

1. Keep track of ever-changing customer demands

◦ When a customer makes their first purchase with your business, CRM can help you track their preferences: the franchises they visit, their buying patterns, and the products
they demand the most. This CRM capability can offer valuable data on how much of which goods you need to send to a specific location.
◦ CRM systems can also inform you which suppliers are delivering the most important goods or services and how they are performing, based on customer feedback. Lastly,
CRM can be a powerful tool which allows you to forecast customer behavior and which customers you can retain by analyzing their product sale history.

2. Refer to an updated, organized database

◦ Data management won’t be valuable to anyone if the data is fudged or outdated. CRM software will allow companies to develop their customer experience by leveraging
clean and complete real-time information.
◦ Through CRM, enterprises can easily compile and share significant data about their customers so that the supply chain can respond accordingly. For example, many
customers don’t mind spending more money on a higher-quality product so suppliers and companies can work to find new resources that meet customer satisfaction.

3. Collect and store unique customer information

◦ There are many sources you can hear the “voice” of your customer from. Surveys, focus group discussions, interviews, complaint logs, field reports, and observations are
among the tools you can use to understand all of your customer’s stated and unstated needs. However, many enterprises neglect to regularly collect feedback due to lack of
time or manpower.
◦ CRM platforms can collect and store valuable customer data in one database with a lot less effort on your part. With CRM software, you would be able to listen to your
customers and improve how you operate your supply chain.
Advantages of Supply Chain CRM Integration
◦ Companies that successfully use apps as part of their CRMs. Amazon, McDonald’s, Etsy, and Starbucks are taking advantage
of the wealth of customer data collected while using their apps for ordering.
◦ These companies are also considered to model best practices for supply chain management systems.
Companies can track data such as customer preferences, which franchises they visit, buying patterns, and which products are
in demand.
◦ This information translates into valuable insights for supply chain systems. It impacts where to send which supplies, which
suppliers are delivering the most in-demand products or services, and how well products and services are performing.
◦ Integrating CRM systems with supply chain software can create a powerful tool.
◦ In the new book, Competing on Analytics: The New Science of Winning, authors Thomas Davenport and Jeanne Harris write,
"Many companies in a variety of industries are enhancing their CRM and SCM [supply chain management] capabilities with
predictive analytics, and they are enjoying market-leading growth and performance as a result."
◦ Example: McDonald’s capitalizes on their app insights by sending personalized loyalty rewards directly to the customer’s
phone through the app. Customers just have to open the app to redeem the offer at the point of service. This can lead to more
loyal customers. McDonald’s outsources its supply chain, but also maintains regional menus and suppliers. The insights
gained from the app provide valuable information to guide supply chain decisions.
Advantages of Supply Chain CRM Integration
◦ The data and information from an effective CRM inform supply chain decisions such as supplier
choices, shipping, which supplies are in higher/lower demand, and how the customer uses
products through their lifecycle.
◦ Supply can meet customer demand in a more efficient way when it works directly with customer
information from a CRM.
◦ Davenport and Harris note there are challenges in transitioning from the usually isolated CRM
and SCM databases and software.
◦ Marketing and sales departments need to integrate with procurement and logistics, but if they
do so effectively the benefit is a business that has supply and demand chains that are more
responsive to customer demand.
◦ Another bonus of adding a CRM to supply chain management software is it can be used to
manage suppliers.
Success Stories: Using CRM for an Effective
Supply Chain
◦ Dell:
◦ Dell pioneered the concept of reaching out to customers directly through the phone or Internet to create customized computers that are specific to what
the customer wants.
◦ With the integration of CRM into their supply chain, they were able to ensure that the necessary computer parts were available when needed so the
goods are delivered on time.
◦ With direct customer interaction informing how their supplies move, Dell was able to expand their market growth through product innovations.
◦ McDonald’s:
◦ McDonald’s established CRM through their app, improving customer service hotlines, and touch-screen ordering technology.
◦ All of the customer information generated through these touchpoints allowed McDonald regional planners to analyze past performance and predict
future demands.
◦ Each restaurant is also equipped with an inventory management system that displays data about their resources and allows them to manage the regional
menu items for sale.
◦ Zara:
◦ Fashion brand Zara’s in-house production allows its supply chain to be flexible and competitive.
◦ When customers let store managers know what styles they like or dislike, the feedback is recorded in their CRM platform and Zara’s designers pay
attention to the collected data.
◦ When their CRM reflects that a particular style is suddenly popular, Zara can easily put new, similar items into stores while the style is trendy.
◦ The integration of CRM and supply chain also prevents Zara from overstocking items, which allows them to maintain their image of exclusivity because
their products rarely have to go on sale.
 Top 10 CRM Tools for Business Growth in
2022
1- HubSpot CRM:
◦ Hubspot CRM is perhaps the best option for small businesses
2- BIGContacts:
◦ This one’s a budget-friendly CRM and email marketing tool!
◦ ◦
BIGContacts has become one of the top-rated CRMs for small
businesses, and the reason is obvious: simplicity and ease of usage.
3- Salesflare:
◦ Useful for a small or medium-sized business selling to other businesses.
4- Zoho CRM:
◦ Zoho is probably the best in terms of pricing.
◦ Normal version costs only $12 per year/ per user. If you want to sync it
to other Zoho tools, the total price adds up to around $30 a year.
5- Pipedrive:
◦ Built for salespeople by salespeople.
◦ Pipedrive really does seem to understand the struggles of salespeople
with its intuitive user interface.
◦ Make the salespeople work easily but also effectively.
6- Less Annoying CRM
◦ Less Annoying is not only a good option for small businesses but also
startups. It is probably one of the best lower-cost CRM tools out there.
7- Salesforce Sales Cloud Lightning Professional:
Salesforce is known for being the top-notch of the CRM software
industry.
◦ The most important aspect is how customizable it is.
8- Apptivo CRM:
◦ As good as Salesforce in terms of features and customizability, and it is
cheaper.
9- Mailchimp:
◦ Mailchimp, primarily created as an email automation solution, can be a
strong CRM if it aligns with your needs.
10- Oracle CX:
◦ Oracle aims to bring more than your average CRM with advanced
customer experience functionalities.
◦ It helps you expand your average sales funnels into customer journey
maps, and helps you ensure you’re touching customers with relevant
content every step of the journey.
The End of 15th Session
Thank you All
Efforts and Attitudes

https://youtu.be/Dw2OvLaS5yQ
 Self Worth

https://youtu.be/XOefJFb0_T8