Supply Chain Managemetn - Scm vs. Crm and Erp Essay
2116 Words9 Pages
Supply Chain Management (SCM) and Customer Relationship Management (CRM) vs. Enterprise Resource System (ERP) a Comparative Paper.
Enterprise Resource Planning System (ERP), also referred to as the traditional management system, was generated from the MRP or the Material Requirement Systems. Companies have utilized this system for well over 25 years. In its primary set up, the MRP stores data related to inventory control and production planning. The system is widespread with the use of one its system with the largest market share, the SAP system is the primary base system for over 60 percent of multinational companies. Many companies have been influenced by ERP over the years, including both small and medium size businesses; it is the…show more content… The ultimate goal is to effectively change the nature of the relationships between vendors and buyers from a traditional perspective to a non-traditional one. Comparatively, when implementing SCM, firms must take in to consideration the impact of the human side of the equation whereas, CRM though relationship based, affects all aspect of supply chain and directly influence performance. More than likely, the base setup such as the information and technology systems needed to implement the supply chain system will be readily available and can be executed almost immediately. Even with all this in place, there are instances where a number of supply chain and customer relationships initiatives fail due to lack of communication or clear and concise expectations from all parties involved. The customer relationship aspect is usually assumed by managers of a firm, and thus tries to merge the SCM and CRM, the result of said merger often end up being one the most difficult part of the integration.
Maintaining a decent relationship between the customer and vendors/supplier makes for a succinct SCM and CRM; integrating the two is critical to developing trust and essential to the success of the firm. Trust building is essential in developing a relationship between the SCM and CRM; however, it’s an ongoing process that must be managed on a continual basis otherwise it can be loss leaving the firm vulnerable.