Crm and Scm Essay

659 Words Sep 21st, 2008 3 Pages
CRM and SCM are both different management concepts: one focusing on concepts used by companies to manage relationship with their customers while the other focuses on planning, implementing and controlling the operations of supply chain. Both the concepts are similar in the way that they can be used to improve organizations functionality in the respective departments. Both management tools can be integrated with the ERP software. Both CRM and SCM can offer benefits in terms of lower costs, higher revenue and improved strategy and performance measurements.

Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and
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The driving force behind supply chain management (SCM) is to reduce inventory.
In principle, both inwards logistics operations to acquire materials to make products and outwards logistics operations shipping finished goods to final customers are monitored.
The system builds a computer model of the supply and demand networks with transport delays and storage locations to serve the known points of supply and demand. It then loads the network with a forecast of the flows of materials caused by the demand plan and, using various algorithms, develops an optimum plan.
Supply chain management flows can be divided into three main flows:
• The product flow
• The information flow
• The finances flow
The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.
There are two main types of SCM software: planning applications and execution applications. Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of
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