1. VAN services
• Inter-network connections.
• International connections.
• Message storage & logging.
• Privacy , security & reliability.
• Message validation.
• Charges
• Software & consultancy.

2. Supply Chain Management(SCM)
• The concept of SCM having the right product in
the right place at right time.
• This is an integral part of business to business
framework.
• It transforms the way companies deals with the
supplier, partners and customers.
• It helps companies to exchange information in an
effort to reduce cycle times to have quicker
fulfillment of orders & improve customer
services.

3. Contd…
• SCM is the game of 4c:
 Collaboration
 Coordination
 Cooperation
 Connectivity

4. Goal of Supply
Chain Management
• Supply chain management is concerned with the
efficient integration of suppliers, factories,
warehouses and stores so that merchandise is
produced and distributed:
– In the right quantities
– To the right locations
– At the right time
In order to
– Minimize total system cost
– Satisfy customer service requirements

5. Suppliers Manufacturers Warehouses &
Distribution Centers
Customers
Material Costs
Transportation
Costs
Transportation
Costs
Transportation
CostsInventory CostsManufacturing Costs

6. PlanPlan SourceSource
Suppliers Manufacturers Warehouses &
Distribution Centers
Customers
Material Costs
Transportation
Costs
Transportation
Costs Transportation
CostsInventory CostsManufacturing Costs
MakeMake
DeliverDeliver BuyBuy

7. Contd…
• A set of approaches used to efficiently integrate
– Suppliers
– Manufacturers
– Warehouses
– Distribution centers
• So that the product is produced and distributed
– In the right quantities
– To the right locations
– And at the right time

8. The Importance of Supply Chain
Management
• Dealing with uncertain environments – matching supply and demand
– Boeing announced a $2.6 billion write-off in 1997 due to “raw materials
shortages, internal and supplier parts shortages and productivity
inefficiencies”
– U.S Surgical Corporation announced a $22 million loss in 1993 due to “larger
than anticipated inventories on the shelves of hospitals”
– Hewlett-Packard and Dell found it difficult to obtain important components
for its PC’s from Taiwanese suppliers in 1999 due to a massive
earthquake
• Demand forecasting practices
– Min-max inventory management (reorder points to bring inventory up to
predicted levels)

9. Contd…
• Lead time
– Longer lead times lead to greater variability in estimates of average demand,
thus increasing variability and safety stock costs
• Batch ordering
– Peaks and valleys in orders
– Fixed ordering costs
– Impact of transportation costs (e.g., fuel costs)
– Sales quotas
• Price fluctuations
– Promotion and discount policies
• Lack of centralized information

10. 10
Supply Chain Management – Key Issues
• Overcoming functional silos with conflicting goals
Purchasing Manufacturing Distribution
Customer Service/
Sales
Few
change-
overs
Stable
schedules
High
inventories
High service
levels
Regional
stocks
SOURCE MAKE DELIVER SELL
Low
pur-
chase
price
Multipl
e
vendors
Low
invent-
ories
Low
trans-
portatio
n

11. 11
Supply Chain Management – Key Issues
ISSUE CONSIDERATIONS
Network Planning • Warehouse locations and capacities
• Plant locations and production levels
• Transportation flows between facilities to minimize cost and time
Inventory Control • How should inventory be managed?
• Why does inventory fluctuate and what strategies minimize this?
Supply Contracts • Impact of volume discount and revenue sharing
• Pricing strategies to reduce order-shipment variability
Distribution Strategies • Selection of distribution strategies (e.g., direct ship vs. cross-docking)
• How many cross-dock points are needed?
• Cost/Benefits of different strategies
Integration and Strategic
Partnering
• How can integration with partners be achieved?
• What level of integration is best?
• What information and processes can be shared?
• What partnerships should be implemented and in which situations?
Outsourcing & Procurement
Strategies
• What are our core supply chain capabilities and which are not?
• Does our product design mandate different outsourcing approaches?
• Risk management
Product Design • How are inventory holding and transportation costs affected by product
design?
• How does product design enable mass customization?

12. 12
Supply Chain Management – Benefits
• A 1997 PRTM Integrated Supply Chain Benchmarking Survey of
331 firms found significant benefits to integrating the supply
chain
Delivery Performance 16%-28% Improvement
Inventory Reduction 25%-60% Improvement
Fulfillment Cycle Time 30%-50% Improvement
Forecast Accuracy 25%-80% Improvement
Overall Productivity 10%-16% Improvement
Lower Supply-Chain Costs 25%-50% Improvement
Fill Rates 20%-30% Improvement
Improved Capacity Realization 10%-20% Improvement

13. Customer Relationship
Management(CRM)
• Any application or initiative designed to help
an organization optimize interactions with
customers, suppliers, or prospects via one or
more touch points for the purpose of
acquiring, retaining customers.

14. Introduction of e-CRM
• eCRM is the application of CRM to an e-business’
strategy
– Personalization/customization of customers’ experiences
and interactions with the e-business
• Recall:
– Relationship between merchant and customers is distant
– Less expensive to keep customers than to acquire new ones
– Repeat customers have higher lifetime value than one-time
buyers

15. TRADITIONAL FORM OF CRM
• The existing CRM solution are not capable
enough to satisfy and retaining customers and
also there is no integrated tool which connect the
Central sales management, regional sales office,
customers care, sales, sales distribution, regional
sales team in effective manner.
• A 360 view requires the automation to bring
together all the data concerning a customer. This
implies that organizations have to change the
form :

16. TRADITIONAL CRM EMERGING SOLUTION
Mass production Product focus
Product focus Customer focus
1way communication Interactive communication
Response time Real time responses

17. Present CRM alternatives
• Present CRM solutions are offered by the host
of vendors that are to a great extent not
industry specific. While some vendors, who
have come up with industry specific solutions,
the broad model around which the CRM
solutions are built, remain the same. A typical
offerings of the current CRM solution (such as
Siebel, oracle apps or Mysap.com etc.) vary
form solution to solution

18. Present CRM alternatives
A typical offerings of the current CRM solutions
offerings comprise of :
• Customer developments
• Service center
• Sales management & support
• Market Analysis
• Internet, telemarketing product & brand
management

19. Present CRM alternatives
• Field sales , Tele sales
• internet sales
• Call centers
• Field service
• Internet customer service
• Service interaction center(call centers)
• Business partners collaborations

20. Technology impact on CRM
Technology is touching the way, we live our lives,
expectations of individuals is changing
continuously and PCs and internet revolutionizing
our lives in 21st
century . Some clear trends that
can be clearly seen are :
• More and more individual will like to be treated
as one single person rather then as among the
masses .
• People wish products and services round the
clock.

21. EMERGING IMAPCT OF E-COMMERCE
ON CRM
In a fast changing internet world there are very
clear trends that are emerging :
• Speed: people expect service at fast speed
• Increase of global market place: more & more
people , communities across the globe are able
to build relationships.
• Around the clock availability
• expansion of partners : internet offers the ability
for the organizations and people alike to partner
with suppliers and customers alike across the
globe.

22. eCRM
• In simplest terms e-crm provides company to
conduct interactive, personalized and relevant
communications across the globe with their
customers by utilizing the traditional and
electronic channels both.
• It adheres to permission based practices,
respecting individual's preferences regarding how
and whether they wish to communicate with you
and it focuses on the understanding how the
economics of the customers relationships affects
the business.

23. Contd…
• e- CRM is the electronic based version of
CRM. The user of the a e-CRM solution uses
the sources of the internet to increase the
relationship with the customer.
• Web based CRM can easily handle the
relationships between Central sales
management, regional sales office, customers
care, sales, sales distribution, regional sales
team.

24. Why employ e-CRM ?
• To optimize the value of the interactive relationships
• Enable the business to extends its personalized reach
in the hand of customers
• Coordinating marketing initiatives across the all
customers channels
• Leverage the customer`s information for more
effective e-marketing and e-business
• Focus the business on improving the customers
relationship and earning a greater share of each
customer`s business through consistent
measurement, assessment and actionable customer
strategy.

25. The six “E`s” of e-CRM

26. Contd…
• Electronic channels: new electronic channels
such as web and personalized e- messaging have
become a medium for fast and interactive ,
economic communication , challenging company
to keep pace with the increased velocity.
• Enterprise : through e- CRM the company gains
the mean to touch and shape a customers
experience through sales, services and corners
offices whose occupants need to understand and
assess the customers behavior.

27. Contd…
• Empowerment: it must be structured to
accommodate consumers who now have the
power to decide when and how to
communicate with the company, through
which channel , at what frequency. An e- CRM
must be structured to deliver timely pertinent,
valuable information that consumers accepts
in exchange of his/her attention.

28. Contd…
• Economics : an e-CRM strategy ideally should concentrate on the
consumer economics, which drives smart asset allocation decisions,
directing efforts at individuals likely to provide the greatest return
on customer- communication initiatives.
• EXTERNAL INFORMATION : the e-CRM solution should be able to
gain and leverage information from such sources as third party
information networks and webpage profiler application.
 Acquisition (increasing the no. of customers)
 Expansion (increasing the profitability by encouraging customers to
purchase more products and services)
 Retention (increase the amount of time in which the customers
stays with company, making a long-term relationship)