Customer Relationship Management in Supply Chain Management

Customer relationship management in supply chain management involves the management of customer relationships throughout the supply chain.

This article will provide an overview of the relevant benefits of CRM in supply chain management, including improvements in customer service, operational efficiencies, and customer satisfaction. 

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Overview

Customer relationship management in the supply chain requires an understanding of customer needs and their expectations, and the ability to align these with the requirements.

CRM-SCM can be performed by a number of different departments, including sales, marketing, and logistics. Some companies are also developing specialist CRM-SCM departments to manage their customer relationships at each stage of their supply chain.

Benefits of Customer Relationship Management in Supply Chain Management

The main benefits of CRM-SCM include improvements in:

Customer service levels

CRM-SCM provides the opportunity for companies to improve the level of service they provide to customers. It occurs through close contact and enhanced communication with both internal and external contacts. 

This can lead to improved customer satisfaction and repeat business.

Operational efficiency

CRM-SCM also allows companies to better understand how customers use their products or services. 

So, it allows them to optimize their operations accordingly (e.g., order quantities). 

This can result in improved response times, reduced inventory levels, and fewer lost sales opportunities. 

Better communication with vendors and suppliers

CRM-SCM also allows supply chain partners to better understand each other’s requirements and objectives. So, it improves communication and cooperation between partners. 

This leads to improved integration, which is of particular benefit when supply chain partners need to perform a number of different roles (e.g., manufacturer, distributor, retailer, and service provider). 

Reduced costs

The above benefits can also result in cost savings for companies if they are able to reduce inventory levels and improve operational efficiency.

The Value of Customer Relationship Management in Supply Chain Management Now

CRM is an emerging discipline that is growing as an integral part of supply chain management practices. 

However, there is a lack of understanding in the industry about customer relationship management in supply chain management and what it encompasses. 

This confusion has led to a failure to understand the true value that CRM-SCM can add to the supply chain. 

In fact, many have even mistaken CRM-SCM for the traditional customer relationship management (CRM) strategy that was implemented by most companies several years ago. 

In reality, CRM-SCM is much more than just another customer relationship management strategy. It is an entirely new approach to managing relationships with customers throughout the supply chain. 

This new approach involves managing customer relationships on a macro level. 

And this includes managing relationships with external suppliers and internal customers throughout the process of moving products from supplier to customer. 

Many companies are already implementing CRM-SCM strategies for their businesses and are benefiting from this new approach. 

To learn more about how you can implement CRM-SCM strategies for your business, read more articles on our blog.

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