Ch. 11 CRM MGT. & SUPPLY CHAIN

Question 1

CRM?

Answer 1

Customer relationship mgt. is a customer focus and cust. driven organizational strategy that concentrates on assessing customers’ requirements for products and services and then provide a high-quality, responsive customer experience.

Question 2

The process where customers lose a certain percentage of Customers is called

Answer 2

Customer Churn

Question 3

A fundamental concept of CRM

Answer 3

Treat different customers differently bc their needs differ.

Question 4

Difference bet. CRM strategy and CRM systems

Answer 4

CRM system are info. system designed to support org. CRM strategy.

Question 5

What is low end CRM system and high end

Answer 5

Low end is designed with many small customers (Amazon)
High-end designed with few large customers (Bentley)

Question 6

Basic elements of CRM policies

Answer 6

• Identify Customer Touch Points; interactions org. have with customers. Use of omnichannel marketing- creates seamless exp.
• Data consolidation; Collaborative CRM system- communication with customers in the org.

Question 7

Recent Push of Consolidated Data

Answer 7

Customer Identity Management

Question 8

What processes does Operational CRM system support

Answer 8

Front office business processes- interact directly with customers; sales, marketing and service.

Question 9

Components of Operational CRM system

Answer 9

• Customer facing applications; direct interaction with cust. inclue customer service and support, sales force automation- records all component in a sales transaction process, marketing, and campaign management.
• Customer touching application; customers use these applications to help themselves. types search and comparison capabilities, technical and other info, customized p&s, FAQ, Email

Question 10

Components of CRM system

Answer 10

• Operational
• Analytical- provide business intelligence by analyzing cust. behavior &perceptions

Question 11

CRM tools accomplish the following objectives

Answer 11

-Improve sales and account management by optimizing the information shared by multiple employees and by streamlining existing processes (e.g., taking orders using mobile devices)
-Form individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits
-Identify the most profitable customers and give them the highest level of service
-Provide employees with the information and processes necessary to know their customers
-Understand and identify customer needs, and effectively build relationships among the company, its customer base, and its distribution partners

Question 12

CIC?

Answer 12

Customer Interaction Centres- org use multiple channels to communicate with cust.

Question 13

Difference bet. Upselling and Cross selling

Answer 13

Upselling is when you show a related product that is higher than the price. initail selectionor like warranty when buying a phone. while cross-selling is showing cust. related products based on a previous purchase

Question 14

What is a form of cross selling that sells a group of product together at a low price than their combined indiv. price

Answer 14

Bundling

Question 15

What is the actual purpose of Loyalty /reward programs

Answer 15

their actual purpose is not to reward past behaviour, but rather to influence future behaviour

Question 16

Other types of CRM systems

Answer 16

-On demand; hosted by an external vendor in the vendor’s data centre AKA Software as a service/utility computing
- Mobile; interacting through a phone
- Open source; source code available to developers and users
- Social ; use ofsocial media to engage cust.
- Real time; help org. respond to reviews, ratings

Question 17

Supply Chain

Answer 17

flow of materials (and services), information, and money from raw material suppliers, through factories and warehouses, to the end customers

Question 18

Segments of Supply Chain

Answer 18

• Upstream; sourcing or procurement from ext. suppliers occurs
• Internal; packaging , assembling mfg takes place
• Downstream; distribution takes place by ext. distributors

Question 19

Flow of supply chain

Answer 19

• Material; physical prod.
• Information; data related to demandetc
• Financial; money transfers

Question 20

The flow of good and info can be

Answer 20

bidirectional . goods returned is called reverse flow or reverse log.

Question 21

Inventory Velocity

Answer 21

The speed at which products and services are delivered after the materials are received

Question 22

SCM

Answer 22

The process of planning, organizing and optimizing various activities performed along supply chain (a coy. uses to acquire raw materials)

Question 23

Components of Supply Chain mgt

Answer 23

• Plan; the strategic comp. of SCM
• Source; choose suppliers
• Make; the mfg component. MOST METRIC INTENSIVE PART OF SC
• Deliver
• Return

Question 24

What’s the goal of SCM systems

Answer 24

To reduce the problems, friction along supply chain.

Question 25

SCM is a type of intraorganizational info. system?

Answer 25

No it is a type of interorganizational IS; info that flows among 2or more org.

Question 26

Describe the Push and Pull model and which is better for SCM

Answer 26

Although many SCM systems use Push model(Make to stock) which is an estimate of what they think consumers will want but Pull model(make to order) is better bc it is based on customers orders, which reduces wastage and all (to avoid uncertainities)

Question 27

Can Automobile coy use pull model

Answer 27

No it’s complicated and expensive

Question 28

Problems of Supply Chain

Answer 28

*Friction-Poor Customer Service
*Uncertainties; demad forcast, delivery times
*The need to coordinate multiple activitiesetc.

Question 29

Bullwhip effect

Answer 29

Erratic shift in orders up and down the SC

Question 30

Solutions to SC Problems

Answer 30

• Building inventories as insurance against uncertainties; Just in time Inventory- used to minimize inv.
• Info Sharing

Question 31

Vertical Integration?

Answer 31

When a coy. purchases supplies to ensure essential supplies are available ASAP.

Question 32

Vendor Managed Inventory(VMI)

Answer 32

The supplier manages the entire inventory instead of the retailer.

Question 33

Drawback of JIT Inventory system.

Answer 33

replaces a few large supply shipments with a large number of smaller ones, making the transport process less efficient.

Question 34

Explain the utility of each of the three major technologies that support supply chain management.

Answer 34

• Electronic data interchange(EDI); a comm. standard that allows partners exchange routine doc. then transmits the message over the internet using a converter/ translator
• Extranets; link bus. partners over the internet by giving them access to certain areas of eachother’s corprate intranets.(Collaboration bet. business partners)
• Portals and Exchanges ; enables coy. collaborate closely.
  types of portals procurement- a single buyer &multiple suppliers
  anddistribution ; single supplier to multiple buyer

Question 35

Disadvantage of EDI

Answer 35

It may require business processes to be restructured to fit EDI requirements.

Question 36

Types of Extranets

Answer 36

A company &its dealers; centers on 1 company
Industry Extranets; major players in an industry can create an extranet that will benefit them all
Joint Ventures&partnerships; use as a vehicle for comm. and collaboration.

Question 37

Which of the portal is the upstream in SC

Answer 37

Procurement