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Erp systems are used to optimise processes WTIHIN an organisation.

with globalisation
and the growth of service oriented economies where efficiency is critical to achieve
competitive advantage, there is an increasing focus to improve business processes that
span organisational boundaries and consider external stakeholders such as suppliers and
customers --can be standalone --- integrated with ERP and CRM systems

CRM direct relationship between customer and marketing/sales division of a firm.


SCM retailers, distributors, manufacturers-- production hold-up --- (late delivery of raw materials to
manufacturer) increases lead times for retailers which in turns causes delays delivering the
product/service to the customer --- which can have an adverse impact on CRM. Now if you scale that
scenario to an organisation like Dell, were talking billions of dollars in lost revenue down the drain.

Amazon has spent over $20 billion since 2010 on warehousing and order fulfilment solutions and uses over
100 warehouses worldwide to fulfil orders.

Contextual awareness on the reach of supply chain environments for an organisation --- VIDEO
JIT requires tight collaboration between all partners in a supply chain network/ecosystem

Lets say that an actual demand from a customer is 8 units, the retailer may then order
10 units from the distributor; an extra 2 units are to ensure they dont run out of floor
stock.

The supplier then orders 20 units from the manufacturer; allowing them to buy in bulk
so they have enough stock to guarantee timely shipment of goods to the retailer. The
manufacturer then receives the order and then orders from their supplier in bulk;
ordering 40 units to ensure economy of scale in production to meet demand. Now 40

units have been produced for a demand of only 8 units; meaning the retailer will have to
increase demand by dropping prices or finding more customers by marketing and
advertising.

Operational CRM
Provide front and back-end support for sales and marketing, administrative personnel, or customer
service processes.
O Analytical CRM
Provide tools for collection and analysis of data gathered during the operational process to help
create a better relationship and experience with clients or end-users.
- backoffice process
O Collaborative CRM
Deal with the interaction points between the organization and the customer.
Improved Supply Chain Network
Supply chain management software provides complete, 360-degree visibility across the entire supply chain network.
This enables more effective tracking and management of all related processes, from the ordering and acquisition of raw materials,
to manufacturing and shipping of finished goods to customers or retail outlets.
The status of mission-critical activities can be tracked at all times, and potential inefficiencies or problems can be identified and
corrected immediately, before they become unmanageable.
Minimized Delays
Many supply chains particularly those that havent been enhanced with a supply chain application are plagued by delays that
can result in poor relationships and lost business.
Late shipments from vendors, hold-ups on production lines, and logistical errors in distribution channels are all common issues that
can negatively impact a companys ability to satisfy customer demand for its products. With SCM software, all activities can be
seamlessly coordinated and executed from start to finish, ensuring much higher levels of on-time delivery across the board.
Enhanced Collaboration
SCM software makes that possible by bridging the gap between disparate business software systems at remote locations to
dramatically improve collaboration among supply chain partners. With SCM software, all participants can dynamically share vital
information such as demand trend reports, forecasts, inventory levels, order statuses, and transportation plans in real-time. This
type of instantaneous, unhindered communication and data-sharing will help keep all key stakeholders informed, so that supply
chain processes can run as smoothly as possible.
Reduced Costs
Supply Chain Management software can help reduce overhead expenses in a variety of ways. It can, for example:

Improve inventory management, facilitating the successful implementation of just-in-time stock models
and eliminating the strain on real estate and financial resources incurred by the storage of excess
components and finished goods

Enable more effective demand planning, so production output levels can be set to most effectively address
customer requirements without the shortages that result in lost sales or wastes that drain budgets

Improve relationships with vendors and distributors, so that purchasing and logistics professionals can
identify cost-cutting opportunities such as volume discounts

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