How does one win the ground war? While CRM provides the emotional experience to the customer, Supply Chain Management (SCM) in turn provides the rational experience to the customer.
The trick is to have faster cycle times, deliver on time as promised while maintaining minimal inventory and of course, meeting stakeholders' expectations on other KPI's. ERP used to be the desired response to these challenges. But having an integrated system within your company is not enough in the digital economy.
While companies continue to minimize costs of production, it may not be enough in the Internet economy. It is now about competing value chains, not just within your value chain.
The Beer Distribution Game taught us that with little or no communication amongst the retailers, distributors, wholesalers and the factory (value chain), the end result are inventory stock-outs/excess and extreme demand surges.
How well linked is your company to the other partners in your value chain? Though EDI was the de-facto standard towards connecting within enterprises, it is a costly and difficult option to pursue owing to strict and proprietary standards.
With the proliferation of XML as the lingua franca for the Internet, you now have the opportunity to effectively link up with all members of your value chain at low entry costs. The end result is concurrent real-time planning, optimization of resources and value added collaboration amongst the members of the value chain.
The stakes are high and failure to meet up to expectations can be disastrous. Miscalculations in forecasting that lead to excess inventory can be fatal. Inability to meet delivery deadlines could push the customer to your competitors.
A fully integrated value chain brings about streamlined processes, cost effective communication and truly revolutionary collaboration opportunities. These collaborative opportunities provide sustainable competitive advantages.
By having access to real-time forecasts, production plans and other KPI's (like inventory levels), you are able to reduce time-to-market for new products, reduce inventories, anticipate trends and increase service quality.
To have truly happy customers, you need to provide Your Vision by utilizing both CRM and SCM in a fully integrated environment.
Supply Chain Management with my SAP provides an integrated supply chain solution with a process-oriented architecture that drives consistent planning, scheduling and execution. Harnessing the power of the Internet, it enables you, your partners and your customers to capture and respond to critical information.
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