1. Supply Chain Management Customer Service Operations LB III Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 10-2 Key concepts and practices Key forms of relationships in the supply chain Key metrics in customer relationship Management How to maintain and improve customer relationships Customer Relationship Management (CRM) LO1

3. 10-3 What is Customer Relationship Management CRM is a process that brings together information about: Customers Sales Marketing Effectiveness Responsiveness Customer trends LO1

4. 10-4 Customer Relationship Management Information collected through CRM can help improve: Customer Service & Increase efficiency Increase and streamline sales and marketing processes Reduce costs and increase overall profitability LO1

5. 10-5 Understanding Business and Supply Chain Relationships Relationship refers to the interaction between customers and suppliers over a period of time For businesses, relationship is not: One or a few interactions “arms length” – “as needed” – “transactional” LO2

6. 10-6 Understanding Business and Supply Chain Relationships Many companies define relationship as existing when the parties involved move from a state of independence to interdependence on one another LO2

7. 10-7 Supply chain relationships are vertical or horizontal in nature Vertical – Between firms including Retailers / Wholesalers Distributors / Manufacturers Suppliers of components and raw materials Supply Chain Relationships LO3

8. 10-8 Supply Chain Relationships Horizontal – Between firms based on mutually beneficial arrangements Each firm provides the service it is best suited for Each firm manages the delivery of its services Each firm works to integrate its services with others Ex. Supplier of packaging materials working with a supplier of products to serve joint customers within the supply chain LO4

9. 10-9 Intensity of Involvement Transactional or at “arms length” One-time or even multiple purchases of standard products or services are sometimes appropriate Close or Strategic Alliance – Built over time and reduces uncertainty, increase communication, loyalty, and performance This relationship is “collaborative” and requires resource commitments LO4

10. 10-10 Differences in Relationships Duration of the relationship Obligations of each partner Expectations of each partner Interaction/Communication between parties Cooperation that occurs between parties LO5

11. 10-11 Differences in Relationships Continued… Planning and visibility provided for each party Goals (performance) agreed to by the parties Performance analysis expected to take place Benefits and burdens or responsibilities LO5

12. 10-12 Service Performance Measurement Must be based on a common understanding of what will be measured and how The goal is to develop measurements that drive good customer service to achieve business success

13. 10-13 Common Service Performance Measures Time: On-time delivery / Receipt / Order Cycle Time Quality – Satisfaction processing accuracy is focused on customer service Costs: Measurement for efficiency Supporting Measures : Minimum order quantity / Change order timing

14. 10-14 The Customer Life Cycle Management (CLM) Describes the steps a firm will go through to Find, Gain, Manage, and Keep customers Helps a firm move away from “silo” thinking that impede customer satisfaction and profits It builds long term value that focus all parties on the needs of the customer It captures future customer needs and interactions with other departments

15. 10-15 Customer Life Cycle Management (CLM) CLM is all about our Responsiveness to the customer CLM simplifies customer information through centralization CLM helps perform analyses and decision making CLM build profile of customers to spot patterns, unmet needs, ineffective communications, R&D opportunities, & cost savings

16. 10-16 Tools and Technologies Used in CRM CRM systems are used to: Gather customer information Analyze data such preferences Provide access to the data through the supply chain Online transactions for customers Personalized communications to customers

17. 10-17 Types of Technologies Used in CRM U sed to track customer’s relationship with a company such as: Tracking points of contact The frequency of purchases The amount spent by each customer Responses to letters, e-mails, marketing campaigns

18. 10-18 Maintaining and Improving Customer Relationships Catering to your customer’s needs is the basis of good customer relationship Happy customers become return customers Use software to have customer information readily available for follow-up

19. 10-19 Improving Customer Relationships with Technology Online presence to facilitate communication and share important information Social media for ongoing conversations –Facebook, Twitter – to present new products and services, marketing ideas and answer customer questions