| Enterprise system | an application used in all functions of a business that supports decision making throughout the organization EX: an enterprise resource planning system is used to coordinate operations, resources, and decision making between manufacturing, production, marketing, and human resources | |
| Supply Chain | an integrated network consisting of an organization, its suppliers, transportation companies, and brokers used to deliver goods and services to customers. exist in both service and manufacturing organizations, although the chain's complexity can vary widely in different organizations and industries | |
| Supply Chain in manufacturing | major links: suppliers, manufacturing facilities, distribution centers, and customers | |
| Supply chain in service organizations | organizations can include real estate, the travel industry, temporary labor, and advertising major links: suppliers(service providers), distribution centers(such as travel agencies), and customers | |
| Supply Chain Management (SCM) | the process of working with suppliers and other partners in the supply chain to improve procedures for delivering products and services SCM system coordinates the following functions:-procuring materials (can include resources and information, for example, in service organizations)-transforming materials into intermediate and finished products or services-distributing finished products or services to customers | |
| Supply Chain Management (SCM) system flows between | -product flow: management activities in this area trace the movement of goods from suppliers to customers; customer service and support are included in this flow-information flow: management activities in this area involve overseeing order transmissions and delivery status updates; this area encompasses the entire order-processing cycle-finances flow: management activities in this area consist of handling credit terms, payment schedules, and consignment and title ownership arrangements | |
| Four key decisions in supply chain maagement | -location: where should manufacturing facilities be placed?-inventory: when should an order be placed? how much should be ordered?-production: what should be produced? how much should be produced?-transportation: which transportation systems will reduce costs and expedite the delivery process | |
| Don't have resources to develop an SCM system | Solutions include: SAP Oracle JDA Software Ariba Manhattan Associates | |
| Electronic data interchange (EDI) | enables business partners to send and receive information on business transactions. many companies substitute EDI for printing, mailing, and faxing paper documents, such as purchase orders, invoices, and shipping notices | |
| Electronic data interchange (EDI) delivers accurate information | -transaction acknowledgements-financial reporting-invoice and payment processing-order status-purchasing-shipping and receiving-inventory management and sales forecasting | |
| "Web-based EDI" or "open EDI" | using the internet and web protocols for EDI lowers the cost of transmitting documents-includes more security risks than traditional EDI | |
| Internet-enabled SCM | improves information sharing throughout the supply chain, which helps reduce costs for information transmission and improve customer service | |
| Internet-enabled SCM may improve: | -purchasing/procurement: purchasing and paying for goods and services online, bargaining and renegotiating prices and term agreements, using global procurement strategies-inventory management: providing real-time stock information, replenishing stock quickly and efficiently, tracking out of stock items-transportation: customers using the internet for shipping and delivery information-order processing: checking order placement and order status, improving the sped and quality of order
processing, handling returned gods and out of stock notifications to customers-customer service: responding to customers' complaints, issuing notifications (such as product recalls), providing around the clock customer service-production scheduling: coordination just in time inventory programs with vendors and suppliers, coordinating production schedules between companies and their vendors and suppliers, conducting customer demand analysis | |
| E-Marketplace | a third-party exchange (a B2B business model) that provides a platform for buyersand sellers to interact with each other and trade more efficiently online help businesses maintain a competitive edge by increasing efficiency and effectiveness in the supply chain | |
| E-Marketplace increase efficiency and effectiveness in the following ways: | -providing opportunities for sellers and buyers to establish new trading partnerships-providing a single platform for prices, availability, and stock levels that's accessible to all participants-solving time constraint problems for international trade and making it possible to conduct business around the clock-making it easy to compare prices and products form a single source instead of spending time contacting each seller-reducing marketing costs more than traditional sales channels can | |
| E-Distributors | common examples of e-marketplaces is a marketplace owned and operated by a third party that provides an electronic catalog of products offer: maintenance, repair, and operations (MROs) services; a company can purchase an MRO package that might include services from different vendors, but the e-distributor coordinates them into one package for customers-horizontal market offer: fast delivery of a wide selection of products and services, usually at lower prices, and help companies reduce the time and expense of searching for goods | |
| online auction | a straightforward yet revolutionary business concept-brings traditional auctions to customers around the globe and makes it possible to sell far more goods and services than at a traditional auction-brings buyers and sellers together in a virtual marketplace | |
| reverse auctions | invite sellers to submit bids for products and services-one buyer and many sellers-buyer can choose the seller that offers the service or product at the lowest price | |
| collaborative planning, forecasting, and replenishment (CPFR) | used to coordinate supply chain members through point of sale (POS) data sharing and joint planning any data collected with POS systems is shared with all member of the supply chain, which is useful for coordinating production and planning for inventory needs GOAL: to improve operational efficiency and manage inventory | |
| Customer relationship management (CRM) | consists of the processes a company uses to track and organize its contacts with customers main goal: to improve services offered to customers and use customer contact information for targeted marketing tools: for conducting complex analyses on customer data, such as a data warehouse and data mining tools | |
| "cross-selling" and "upselling" | getting the customer to buy additional products. sending discounts for a certain, more expensive brand | |
| With CRM system an organization can: | -provide services and products that meet customers' needs-offer better customer service through multiple channels (traditional as well as the internet)-increase cross-selling and upselling of products to increase revenue from existing customers-help sales personnel close deals faster by offering data on customers' backgrounds-retain existing customers and attract new ones | |
| CRM system includes following activities: | -sales automation-order processing-marketing automation-customer support-knowledge management-personalization technology | |
| On-Premise CRM | organizations with an established IT infrastructure often choose an on-premise CRM which is implemented much like any other IT system | |
| Web-based CRM | the company accesses the application via a Web interface instead of running the application on its own computers and pays to use CRM software as a service, which is similar to Web-hosting services | |
| several software packages are available for setting up a CRM system | -Amdocs CRM-optima Technologies ExSellence-Infor CRM-SAP mySAP-Oracle PeopleSoft CRM-Oracle Siebel | |
| CRM packages share the following features: | -salesforce automation: this feature automates tasks such as inventory control, order processing, tracking customer interactions, and analyzing sales forecasts and performance. it also includes contact management features fro collecting, storing, and managing sales contacts and leads.-eCRM or Web-based CRM: this feature allows web-based customer interaction and is used to automate e-mail, call logs, web site analytics, and campaign management. companies use campaign management to customize marketing campaigns, such as designing a marketing campaign tailored to customers in southern california or customers in the 18-35 age bracket, for example.-survey management: this feature automates electronic surveys, polls, and questionnaires, which is useful fro gathering information on customers' preferences-automated customer service: this feature is used to manage call centers and help desks and can sometimes answer customers' queries automatically | |
| personalization | the process of satisfying customers' needs, building customer relationships, and increasing profits by designing goods and services that meet customers' preferences better | |
| customization | is somewhat different from personalization, allows customers to modify the standard offering, such as selecting a different home page to be displayed each time you open your Web browser | |
| Collaborative filtering (CF) | searches for specific information or patterns, using input from multiple business partners and data sources. it identifies groups of people based on common interests and recommends products or services based on what members of the group purchased or didn't purchase | |
| knowledge management (KM) | a technique used to improve CRM systems (and many other systems) by identifying, storing, and disseminating "know-how" facts about how to perform tasks. draws on concepts of organizational learning, organizational culture, and best practices to convert tacit knowledge into explicit knowledge, create a knowledge-sharing culture in an organization, and eliminate obstacles to sharing knowledge | |
| knowledge management system should help an organization do one or more of the following: | -promote innovation by encouraging free exchange of ideas-improve customer service by reducing response time-increase revenue by reducing the delivery time fro products and services-improve employee retention rates by rewarding employees for their knowledge | |
What focuses on using information about customers to create marketing strategies?
Customer relationship management (CRM) focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships.
Which function is coordinated by a supply chain management SCM system?
Logistics is the part of supply chain management that coordinates all aspects of planning, purchasing, production, warehousing, and transportation so that the products will reach the end-consumer without any hindrances.
Which component of an enterprise resource planning system provides information related to e procurement quizlet?
Which component of an enterprise resource planning (ERP) system provides information related to e-procurement? Knowledge management draws on concepts of organizational learning and organizational culture. Organizations sometimes pay external agencies for additional data about their potential customers.
Which statement is true of web based electronic data interchange open EDI )?
Which statement is true of Web-based electronic data interchange (Open EDI)? It reduces the cost of transmitting documents.