Improve supplier performance CSCP Module 3 - Tài liệu tham khảo | Đại học Hoa Sen
Improve supplier performance CSCP Module 3 - Tài liệu tham khảo | Đại học Hoa Sen và thông tin bổ ích giúp sinh viên tham khảo, ôn luyện và phục vụ nhu cầu học tập của mình cụ thể là có định hướng, ôn tập, nắm vững kiến thức môn học và làm bài tốt trong những bài kiểm tra, bài tiểu luận, bài tập kết thúc học phần, từ đó học tập tốt và có kết quả cao cũng như có thể vận dụng tốt những kiến thức mình đã học.
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CSCP Module 3
Study online at quizlet.com/_50no5
# of floor failure even1t.s: supplier-caused discrepancy i s found after part is sh ipped to stores or assembled, organiz ation must adjust performance index align internal 2. ly
: step 1 to successful alliance: key issues and decisions involving key stakeholders appoint dedicated alliance mg 3. r
: step 5 to successful allia nce: oversee and implement specific methodology for managi ng the relationship assemble tea4m
. : step 2 integration strategy: chann el master invites few key partners from each constituent to create anointer-organiza tion
team to begin collaboration; conducts as sessment of demand, supply, competition, a nd systems to determine wha t will set this network apart benefits of CDW
5. : contains info a bout companies customers, products, and marketplace; benefits incl ude: (1) strategic marketing - CDW data
can identify and implement offers to loyal customers while enticing new customers with low introductory offers; improves seg mentation by
allo wing data on customers, their preferences, an d vulnerabilities; (2) new product development - input into product design and
development decisions; (3) chan nel management - effectiveness of channels a nd the strength of importance of channel to market segment;
(4) sa les productivity - customers' ch annel preference and purchas ing patterns to help in crease sales productivity; (5) one-to-one marketing
- allows customized programs and a one customer marketing strategy; greatly enhances overall customer satisfaction and loyalty benefits of CT 6 M
. : (1) capacity procurement - carriers can anticipate demand rather than guess where and when; shippers can consolidate
shipments, decrease admin costs, and better align carriers nationwide; (2) inbound management - receives can a nticipate inbound goods
and con solidation of loads, reducing costs, a nd use carriers more efficiently; (3) integrated movements - volumes from multiple location s
within organization, a cross divisions , or across organizations are combined; decrease in freight expense, improved service, increase in
committ4ed service; (4) transportation marketplace - match transportation capacity with demand; shippers can locate coverage for unusual
load volumes and avoid premium freight costs benefits of IS 7 O
. : (1) help ensure development, manufacture, an d supply of products that are more efficient, s afer, a nd cleaner; (2) facili tate
national and international trade and make it more fair; (3) provide governments with a technical base for health, safety, and environmental
legislation and conformity assessment; (4) promote best practices and sharing innovative technological advances and good mgmt practices;
(5) safeguard consumers and users of products and services; (6) promote information sharin g and provide solutions to common problems
benefits of managing SC network relationship
8. s: increase ability to reach common goals ; increase efficiencies thru cost reduction,
demand enha ncement, agili ty improvement, shorter cycle times, lower inventory levels - shorter lead times and cycle times, safety stock can
be reduced, improved on-time deliveries, increased customer satisfaction, improved forecast accuracy, better responsiveness to market needs, lower shortage costs benefits of segmentatio 9. n
: customers expect market to come to them instead of them going to market; lifetime customer relationships a re
more likely when customers feel a company is meeting their unique needs; CRM business have more opportunity to learn a bout customers
and use that to make them lifetime customers and increase profit benefits of SRM softwar 1 e
0. :(1) w orks well with most ERP systems & helps them achieve full potential; (2) helps reduce cycle time on s ourcing
projects; (3) makes it eas ier to select suppliers - prices can be compared quickly; s oftware allow s buyers to add past performance to equation;
(4) makes it easier to standardize purchas ing decisions; (5) makes communication between buyer and seller faster
benefits of strategic sourcin 11 g
. : (1) traditional purchasing focuses on purchase price; strategic sourcing focuses on true cost to the customer;
(2) traditional purchasing is transactional; strategic sourcing is collaborative; (3) traditional purchasing never crosses boundaries that
distinguish 2 business entities; strategic sourcing allows opportunities for realignment and collaborative business processes, info flows,
and workflows; (4) traditional purchasing benefits from technology but cannot implement technology to the same degree as strategic
sourcing can; (5) traditional purchasing does not increase the visibility of the entire SC the way strategic sourcing does buy on the marke 12 t
. : type of supplier relations hip where traditional approach is for pur chas ing buys for an immediate need; (a) proximity -
relationship is transactional and not ongoing or exclusive; (2) visibility - sharing of purchasing needs but not strategies or plans; (3)
interaction with competitors - s ignificant; (4) communication - computerized interaction; (5) culture - lower-value relationships call cent1e 3 r
. : generate info tha t immediately updates customer info profile and any predictive model scoring in the CRM system capabilities of SRM technolo1g 4.y
: goal is to streamline and make more effective the processes between an orga nization and its suppliers; can
be applied to transactions and analysis; (1) gain visibility across suppliers and commodities - helps facilitate gathering, cleans ing, and
presenting procurement info to a llow organizations the visibility they need to support their business decisions; (2) leverage corporate buying
power - provides info to negotiate best contracts a nd support corporate goals ; (3) monitor the effectiveness of procurement programs,
suppliers, and contracts - enables the org anizati0on to measure its procurement performance in terms of cos t saving s, quality, delivery,
price, and overall effectiveness; (4) spend ana lysis - identify who they are buying from, what they are buying from each supplier, and when/h ow it was purchased certification proces 15 s
. : extensive on-site evaluation of suppliers agai nst ag reed-upon performance levels in areas such as on-time delivery,
quality, price reductions, an d responsiveness; certified supplier has shown complete and thorough understanding of the organiza tion's
needs; it is a supplier selection tool an d a means to improve supplier performance certify supplie 1 r
6. s: step 7 certification process: certified supplikers stand out in a ll areas of relationsh ip
characteristics of successful alliance 17s
. : (1) individual excellence - each partner has something to offer; motive is to pursue opportunity; (2)
interdependence - partners' strengths a re complementary; stronger as a partnership; (3) importance - allia nce figures in to each partner's
goa ls and strategies; (4) investment - commitment to the relationship is evid enced by their investment of time, people, and resources; (5)
information - communications are open; (6) integration - partners have many connections and sh ared operational procedures at different
levels; (7) institutionalization - alliance is given formal status with clear objectives; (8) integrity - trust in intangible but vital element of
alliance; (9) interpersonal skills - critical to building and sustaining successful relationship
characteristics of supplier relationship 18 s
. : (1) proximity - how long is relationship? How narrowly defined is it?; (2) visibility - how much
info sharing exists? What type of info is being shared?; (3) interaction with competitors - casual hookup?; (4) communication - how many
points do we touch? H ow much trust exists?; (5) culture - any attempt to sh are cultures or influence each others' culture? collaboration principl 1 e
9. s: (1) understand needs of partners - solutions offered alig n with needs & capabilities of SC partners; (2) focus on
most profitable partner - Pareto 80/20 rule; (3) use SC assets collectively - understand customer and SC network to determine best solution
for implementation; (4) monitor performance - processes & systems must be in place to measure performance; (5) continuously improve - if
SC network is to successfully respond to chang ing custome r needs, it must be able to re-invent SC partner competencies
collaboration/strategic allian2c
0.e: type of s upplier relationsh ip ruled more by ag reements than contracts; replaces shopping for competitive
bids; (1) proximity - long-term relationsh ip; (2) visibil ity - full sha ring of goals, s trategies, & tactics; attempt to reflect partners plans in
own; (3) interaction with competitors - limited or none; (4) communication - extensive interaction; high l evel of trust; (5) culture - merging of cultures collaborative plannin 21g
. : (1) collaboration on i nventory mgmt & new product development - organ izations are more competitiv e and enjoy
greater profit margins; (2) col laboration between manufacturers and customers, distributors, and s uppliers - SC can more quickly respond to
customer demand thru better scheduling, better inventory mgmt, enhanced products; more likely to lead to products that match needs of
marketplace, where consumers a re willin g to pay a l ittle more
collaborative transp ortation mgmt (CTM
22. ): holis tic process that brings together SC trading partners an d service providers to drive
inefficiencies out of the transport planning and execution process; adds value by identifying transportation inefficienci es in most order
fulfillment processes; helps reduce wait time carriers experience before loading a nd unloading , optimizes w eight a nd volume capacity of
transport resources, and decreased deadhead miles by coordinating transportation a ssets within transport ation network to ensure drivers
have return loa ds; designed for inbound and outbound flows committment to chan2g
3.e: change is constant and inevitable; winning SC will be those that can constantly reinvent themselves to match
changing customer needs and wants committment to communicatio 24n
. : dynamic environment where information flows in both directions n a real-time basis committment to the relationsh 2 i 5 p
. : SC partner believing an ongoing relationship with another is so important as to warrant maximum efforts at maintaining it compliance managemen
26.t: consi sts of defining a nd implementing s trategies to concentrate purchas es wi th preferred suppliers, monitoring
& measuring compliance and identifying off-contract purchases to uncover lost savings opportunities, channel findings to mgmt for
remediation, monitor & report on key supplier performance metrics, audit supplier pricing to ensure accurate billing , moni tor contract
expirations, execute renewals, drive continuous process & incremental cost savings improvements, establish baseline for new sourcing initiatives components of CRM strateg 27 y
. : product, price, placement, promotion conduct joint quality plannin 28 g
. :step 4 certification process: suppliers must be awa re of certification process and measures conduct measuremen 2 t 9 s
. : step 6 certification process: cost, quality, delivery, and other attributes like techni cal support and a ttitude conduct pil 3 o
0. t: step 4 to imp lementing SRM strategy: be designed for a discreet portion of orga niza tion's activities conduct pulse check 31 s
. : step 9 to successful alliance: formally monitoring the health and trust of the relationship
conduct quality impr ovement program 3 s
2. : step 8 certification process: Conduct quality improvement plans - implement programs to bring
suppliers that didn't achieve certification up to desired certification standards conformation rat3e
3.s: data from each in spection or test is documented in sys tem content search mgm
34. t: engines provide access to info by content (product description or type) or parameter (how it is organized) continuous replenishment mod 3 e
5. l: suppliers are notified daily of s ales or warehouse shipments an d commit to replenish inventory without
OOS a nd without receiving replenish ment orders; turns are improved contract deployme3n
6. t: ensure a smooth transition to new suppliers and successful adoption across organizations; activities include
navigating legal to create new contract, communication with winning supplier, promoting benefits of new agreement to internal buyers,
loading new c ontracts into centralized contract mgmt database, i mplement order-to-payme nt procedures, training users and suppliers,
validate supplier performance to measures & KPIs, deploying transa ction mgmt system, auditing invoices for accuracy & complian ce contract detail requiremen 3 t 7 s
. : (1)pricing - price per unit; p ackag ing estimates, etc; (2) delivery requirements - dates, locations, and
conditions such a s how orders will be placed, how product is to be protected during shipment, a nd mode of transport; min or max order; (3)
transfer of ownership (inco terms) - determines whi ch party manages freight a nd most likely price paid for goods; (4) payment terms -
address timing an d form of payment (currency excha nge); (5) performance criteria - specifications of product attributes a re noted along with
whi ch attributes are most important and why; (6) quality assurance - management process and performance standards the organiza tion
has in plac e in order to assure quality; (7) order requirements - meas urement of standard deliveries, quantities a company wan ts, and the
date due; (8) associated incentives and penalties - how an organization will provide business assistance and/or incentives to a supplier to
help them improve; (9) status reporting - cover provisions for communication in terms of frequency and types; (10) channels for resolving
problems - expectations and protocol for corrective actions to enable sw ift resolution and prevent recurrence; (11) security requirements -
safeguards that must be in place to prev ent unauthorized access to proprietary data; (12) l anguage of the contract - correct translation is
critical; (13) contract termination - process and terms for termination should be defined; (14) legal authority - organization's relationship
with supplier may be influenced by law s, regulations , directives, and international treaties controlling error 3 s
8. : some organizations implement online compliance scanning and labeling control systems with suppliers that prevent
suppliers from printing out packaging labels a nd shi pping goods unless they comply with the PO or release order rules; helps to minimize #
of sh ipments that a re turned away at the receiving dock or that arrive incomplete
cooperate & build partnership with supplie 39r
. : step 5 certification process: supplier is as ked to commit to a process defined in formal
agreement; agreement describes certification parameters, methods, audits, process details, etc. cost vs customer servic 40 e
. : reducing in ventories, mfg cos ts, an d transportation costs come at expense of custom er service; direct shi p is one
solution; central warehousing is another
create & use supplier quality rating 41 s
. : step 9 certification process: orga nizations must ensure suppliers are maintaini ng l evels of
performance expected and taking corrective action if necessary create strategic pla 42n
. : step 3 integration s trategy: define clear process for mgmt review, feedback, team revision , and re-presentation;
implementation strategy that meets needs of all participants; must address h ow n etwork will be different across the SC, architecture needed
for internet features, how physical assets will be shared, and who is in charge of executing major changes needed
CRM strategies for specific customer type 43 s
. : key purpose of CRM is to allow a company to a ddress various types of customers it serves at
different stages in their life cycle; marketing and customer care programs are developed based on customers' attitudes toward the company
and its willingness to buy its products
CRM strategy for business-2-business customer 44s
. : strategy must include training of sales an d service reps, with great attention paid to
profiling customer needs, a voiding problems, and analysis of a ccount data to identify areas of improvement; 3 areas of expectations:
(1) complementary core competencies - rely heavily on expertise and reliability of their product or service providers because failure by
provider puts business at risk w ith its own customers; (2) knowledge of customers' business requirements - value provider's understanding
of how custome r's business operates, li mitations and concerns, h ow product fits into customers' busin ess, & what requirements are part of
purchasing process; (3) continuous improvement - business customers value sugg estions rega rding economic opportunities, improvements,
and potential solutions to problem s
CRM strategy for retail customer 45 s
. : most important is bundle of services with product...i n-store ass istance, availa bility of web to do pre-
sho pping or post-purchas e customer service, product desig n; second w as product quality; third was price
CRM strategy for service-minded customer 46 s
. : for those who value service, call center is heart of busines s; point of differentiation is
technology; CRM all ows customer service rep to view detailed info about customer history as well as specific transaction during the call; can
see immediately if customer is hi gh-value and escal ate service process CRM technologi4e 7 s
. : technology is constantly changing so businesses must stay informed of emerging technologies in order to enhance
customer experience, i ncrease profits, and stay a head of competition cultu4r 8 e
. : sha red system of values, beliefs, and attitudes that identify the members of a given culture and distinguish them from other culture
groups; affects our own actions and the way we perceive others; shapes many aspects of human contact, including give-and-take of
negotiations, protocols, and other social and work conventions; is learned thru socialization; it is not a product of one's personality
customer care technology enhancemen 4 t 9 s
. : web-enhanced customer service provides lots of solutions to increase customer expectations in
the areas of response, product customization, convenience, order status visibility, and returns processing (FAQs, online customer service
reps, online cha t rooms, more detailed product info on line ca n reduce returns, telephone care have queue options) customer data warehouse (CDW 50 )
. :contains info about an organization's customers, products, and marketplace
customer relationship management (CRM 51 )
. :starts with an adjustment of philosophy in an organization - the shift to a customer focused
way of doing business - then moves to re-tooling all business processes tha t touch on the relationship with the customer; customer first, no
matter what; responding to change is the difference between winning and losing; if business fails to understand satisfying their customers'
needs and wa nts id their primary mission , then the business will fail; a competitive survival strategy; customers g ain improved experience,
business gain improved customer visibility (increases in ability t o satisfy the customer, create lifetime customers, and realiz e potential profit from each customer) customer-focused busine5s 2 s
. : (1) a re easy to do busines s w ith...anytime, anywh ere; (2) add value to their products and services, integrating
products and information s o that customers feel more educated during and after the decision-making process; (3) are in novative not only in
their design o f services and products but in their marketing, delivery, and customer care; (4) design a ll busin ess contact points from the
perspective of the customer; (5) sh are detailed insigh ts about customers within organization or s upply chain decline stage of PL 53C
. : if product has brand loyalty, profits may be maintained lon ger, but declining production volumes and increased unit
costs, profits are drying up; customer care is critical and can promote lifetime customer development; service and replacements parts must be guaranteed
define requirements, process, role 5 s
4. : step 1 certification process: w ho carries out e ach role; key players on team identified and task s documented define SRM strate 5 g
5. y:step 1 to implementing SRM s trategy: organ ization must review the corporate , marketing, manufacturing, and sourcing
strategies; must know goals, resources, limitations before it can decide on suppliers designate channel mast5e
6.r: step 1 integration strategy: capable of rallying support and driving implementation beyond preoccupation of
improving internal competencies
develop cri teria & enroll partne 5 r
7.s: step 2 to implementing SRM strategy: identify criteria to be used in selecting s uppliers w ho w ill become
part of the strategic a lliance; ability to pay and manag e cash flow directly impacts quality of service received development stage of PL 58C
. : incubation period; market research, product design, s ervice definition, testing, and final ization are complete;
information gathered thru CRM can be used to identify ideas or concepts that could potentially meet customer's needs a nd increas e profits; a
successful product design must be measured against profit goals and the product's ability to meet those customer expectations and improve
the competitive position; next is to gauge how s uccessful the product is in the marketplace; CRM can be used to test the product and its
promotional plan ag ains t KPIs such a s cos t and profit goals, custome r satisfaction measures, market penetration, or improved competitive
position; by in volving key customers in the product or service development phas e, the business creates sense of partnership and mutual
investment that leads to lifetime customer disconnected technolo5g
9.y: non-interfacing databases house info; data not easily combined distributor integration (D 6 I
0.): distributors are integrated using modern IT s o the expertise and inventory loca ted at one distributor is
available to others; in tegrated for better inventory control a nd better customer service; distributors ga in flexibility w ithout having to carry
excess stock; challenges to creating a D I include distributors doubting benefits of participation and so me responsibil ities may shift from
some distributors to ch osen few
electronic busi ness systems backbone applicati on (EBS Backbone ERP 61 )
. :main purpose is to collect and provide repository for
internal database info in order to guide the purchase process; contains following key functions: (a) procurement history - past transactions,
open PO status, active supplier list; (b) accounting - order & price matching, in voice entry, payables, credit mgmt; (c) purchase plann ing
future purchas ing scheduled aga inst anticipated demand; (d) performance measurement - reporting a nd performance measurem ents can be generated encourage allian6c
2.e: step 6 to successful alliance: employee skills for resolving conflicts, negotiating, joint problem solving, and conducting
difficult conversations must be developed and taught to those in cha rge
engage in collaborative corporate minds 6 e
3. t: step 7 to successful alliance: must focus on joint goals and think in terms if alliance rather
than about the dominant partner
enterprise marketing automation (EMA
64.): software applications to search, compile, and use customer databases to target customers and
then generate a marketing campaign using e-mail, Web, telephone, and other technology to reach those customers; major components of
EMA: (a) promotions - giveaways, contests, discounting via web (no paper-based); (b) cross-selling and up-selling - offer alternatives to
generate interest; (c) marketing events - onlin e news letters, s eminars, webcasts (immediate); (d) customer retention- identify customer
most likely to bail & find possible i mpact of promotion efforts on that type of customer; (e) response mana gement - uses marketing
campaign info to determine impact of campaign by calculating actual customer profitability establish ground rule 65 s
. : step 4 to successful a lliance: develop guidelines, processes, and protocols for how partners will w ork together,
resolve conflict, and mutually manage the relationship evaluate alternative sup plier 66s
. : step 2 cert ification process: suppliers a re screened execute, evaluate, repe 6 a
7. t: step 4 integration s trategy: team must make critical a djustments based on ong oing evaluations as each part of
network is put in place; remain flexible external data network 68 s
. : collaboration within organization and across resellers, suppliers, and channel support partners; used for
promo/product bundling, financing, packaging design, merchandising, and transportation failling allianc 6 e
9. s: (1) a llia nces are processes tha t require continuous monitoring and attention; (2) immature te chnology, uncertain
marketplace, shifts in corporate strategy, external forces beyond control of a llia nce partners; (3) ineffective management, inadequate
resources and staffing, and failure to honor commitments; (4) for an organization to have a successful offshore partnership, potential
suppliers must have business processes and efficiencies that complement the strategic go als of the organi zations SC and must be able to
deliver on capabilities to customers global expansio 7 n
0. : globalization of sourcing and manufacturing is making SC longer and more complex, requiring more formal coordination and collaboration
global strategic alliance consideration 7 s
1. : (1) cultural and language differences - global alliances; (2) multiple currencies & fluctuations -
global sourcing; (3) different legal systems - different countries have different expectations a nd legal remedies for contracts; (4) security
concerns - theft, competitive espionage, terrorism, trade secrets; (5) search for qualifi ed partnerships - locating s upplier who is a good
match in terms of know ledge and experience as well as trustworthy requires due diligence; (6) business process concerns - product and
process concerns i nclude quality, s afety, and design; require strong integration and communication growth stage of PL 72C
. : time of rapid revenue growth; competition will in crease; businesses must commit resources to satisfy market needs a nd
to gathering data for analysis in ongoing manner; production and inventory level must be manag ed to minimize OOS that could lead to
customers sw itching brands; customer care must be maintained; identify strong and weak customer segments
Hofstede's di mensions of cultur 7 e
3. : (1) power distance: hi gh - mgrs tell employees wh at should be done; low - mgrs consult with employe es
about what should be done; (2) individualism/collectivism: individualis t - tend to de fine themselves by their job; collectivist - relationsh ips
more important than j ob; (3) uncertainty avoidance: high - may need to gather more data and apply more structured decision-making
process to gai n acceptance by people you're working with; low - overall workplace is charac terized by tolerance and self-control, fewer rules,
written or unwritten; (4) masculine/feminine: masculin e - emphasis on work over family; feminine - balance between work and family; (5)
long-term/short-term: long-term - traditions may change an d adjust to times; s hort-term - traditions must be honored and not changed implement full progra 7 m
4. : step 5 to implementing SRM strategy: plans include regular planning /pulse-taking/problem-solving session s with key suppliers
implementation challenges with CRM & SR 7 M
5. : (1) macro-level or micro-level - both have technology piece (sharing information) and
human piece (new attitude and new skills); (2) reengineering org structures and redefining workforce roles (new business vision and
mission statement, new business organization, new job definitions); (3) creating virtual organizations (information no longer is
proprietary but is sh ared among s trategic partners for the benefit of each and for the benefit of the SC as a whole; in tegrated processes must
be developed and adopted by all employees and impleme nted throughout all involved organizations ; parts of virtual organization must
decide on and manag e to degree of risk they are willing to undertake in the merged environment): (4) ree xamining ex isting technologies
(systems must be more flexible, do more, and be capable of communicating with other partner's systems, cha nge and loss of competitive
advantage may cause org to leave behind outdated mgmt approaches and adopt more fluid, in teractive IT tools that can leverage know ledge
and skills of teams made up of people from various points in the SC) integrated SC netwo7r 6 k
. :greatest benefit from fully integrated SC is when all participants share info and truly collaborate; key is
collaboration, not just info sharing interfacing technolog 77 y
. :various systems feed into each other, creating some capacity for integration
internally integrated technolog 78 y
. : one main system captures and stores different data elements introduction stage of PL 79C
. : sales will be low until c ustomer becomes aw are of product and its benefits; period of negative profits; new
customers must also be supported to ensure high level of satis faction with produ ct and company
inventory vs transportation cos 8 t
0.s: truckload quantities take longer to deplete, increasin g inventory storage costs; distribution control
systems combine forecasting a nd delivery schedule information to a llow a materials manager to transport goods from various w arehouses
together, minimizing deliveries an d transportation cos ts; decision support systems enable SC to find a suitable balance between
transportation and delivery costs by cons idering all aspects of SC IS 8 O
1. : a trusted partner in global community for the development of globa lly relevant international s tandards; basic concepts: (1) voluntary - all
ISO standards are voluntary; may be market requirement; (2) market-driven - ISO develops standards where there is a market requirement;
(3) cons ensus - ISO standards are developed in response to market demand and are based on consens us among interested parties ensures
widespread applicabil ity; standards are reviewed at least every 5 years (may be maintained, up dated, or withdrawn); (4) registration - audit
of an organization's implementation and conformance to ISO standards; regis tration requirements come from customer or government; (5)
generic management system standards - generic standards can be applied to any organization, large or small, and any product or service in
any sector of activity; applicable to business enterprises, g overnment departments, or nong overnment public administrations
keys to implementing CRM technolog 82 y .
: (1) a thorough, well-thought out technology a rchitecture needs to be determined in the beginning
stages of the process; determine current level of technology and make plans to migrate to higher one; (2) system should enhance efficiency,
not sacrifice it - s hould make CRM tasks easier and faster; (3) implementation sh ould be coordinated throughout org - employees from every
area on team; (4) everyone must know the extent to wh ich he or she will use the sys tem and must be trained accordingly - job processes
must be re-drawn to reflect CRM system; (5) technology implementation sh ould be measured agai nst customer needs and expectations - is
customer ready for technology? Is it easy for customer to use? Does it meet customer expectations? D oes it allow customization/personalization?
lead time vs transportation cos8t3s
. : time committed to processing orders, procuring and mfg items, and trans porting them; trans portation
costs a re lowest when hig h quantities are transported together, lead times are redu ced when goods are transported as they are
manufactured; IT systems improve demand plan to help in tradeoff
levels or amountsof conditionally accepted materia8l4s
. : materials that don't conform to specs but are accepted thru material review process lifetime custom8e
5.r: (1) lower total marketing costs - as relationship develops, marketing and sales expenses decline; (2) learning
relationship is formed thru which companies build user profiles, track previous purchases, and an ticipate trends; the longer one keeps a
customer, the greater the ch ance to fulfill the customer's needs and deliver satisfaction; (3) offer increas ed revenue and profit opportunities
as relationshi p matures, revenue from customer increases; as revenue grows, cost of customer acquisition decreases a nd profit increases;
lifetime customers value con venience and stability over price; lot size vs inventor 86 y
. : mfg wa nts la rge lot size to optimize pr ocess control and reduce per-unit setup costs, but creates high inventory levels for
warehouse and stores; IT can improve lead time requiredby mfg to react to needs of SCpartners; IT can help retailers and distributors track
goods throughout process; improved IT also gives retailers a nd distributors a better idea of process flow and mfg capabilities.. .increased
confidence level allows retailers a nd distributors to reduce inventory held in anticipation of mfg problems loyal custom8e
7.r: less vulnerable to loss and wi ll therefore not incur the costs of a w in-back program; CRM program offers loyal customers
increased s ales opportunities thru cross -selling (complementary product) or up-sellin g (more profitable product); loyalty program design
consi derations: (a) customer behavior - type of customer behavior company wants to increase; (b) targeting - ho w customers are segmented
and are needs a ddressed thru loyalty programs; (c) positioning - implications of loyalty program to other customer segments; (d) program
offer - wha t program consists of; (e) cos t & benefit structure - long -term cost & benefits of each program; (f) communication - how
customers are notified of loyalty program
manage multifaceted relationshi p 88 s
. : step 8 to successful alliance: companies need organization-wide ability to identify, discuss, and track
all relationships with a given partner and understand interactions maturity stage of PL 89 C
. : most profitable; sa les con tinue to increase but at slower rate; competition lea ds to decrease i n market share and/or
price; must continue to attract new customers; brand image is critical member servic9e 0 s
. : creates personalized web s ites for partners mergers & acquisi tion 91 s
. : type of supplier relationship w here suppliers are folded into purchasing entity; (1) proximity - own ership; (2)
visibility - full sharing of goals , strategies, & tactics as internal, common knowledge; (3) interaction with competitors -none; (4)
communication - varies; (5) culture - one culture
mktg & sales technology enhancemen 9 t 2 s
. : helps identify the wan ts and need s of the customer, determine which customer segments the
business can serve, and make decisions on a ppropriate mix of products to offer to segments; provides sales reps with acces s to order status,
customer history, and product and customer information monitor & improv 93 e
. : step 6 to implementing SRM strategy: implements framework of metrics to ensure suppliers are meeting PSA and
delivering desired impact on organization's bottom line and/or strategic goals
multi-enterpri se integrated technolo 9 g 4. y
: multiple business lines within a large org share captured and stored data centrally, allowing synergies to exist negotiate wi n/wi 9 n
5. : step 3 to successful alliance: must focus on future working relationship as well as immediate substance of negotiations off-site delivery cente 9 r
6.s: add value in application design, development, an d mgmt; as well as model an d data mgmt; offer well-tested
methodologies, proven and reusable as sets, a nd experienced people ongoing relationshi 97p
. : type of supplier relationship where arms-length relationshi p involves repeated transactions with s ame suppliers
regulated thru medium-term contracts; (1 ) proximity - medium-term contracts; (2) vis ibility - some sharin g of goal s a nd tactics; (3)
interaction with competitors - some; (4) communication - designated contacts (account mana gers); (5) culture - awareness of culture online procurement technologi 9 e
8.s: spend anal ysis, procurement mgmt, con tract mgmt; bring efficiencies but also costly online sal 9 e
9.s: lower business costs a nd gathers i mportant customer info (user profile, # of visi ts, na vigation preference) operational pha1s 0 e
0. : CTM phase 3 defines process for executing customer orders; uses ag reed-upon standards, distribution methods, and
carrier assignments to transla te orders into shipments order/provisioning syste1m
01. :customer orders a nd interactions are logged and used to update profile; target customers with products and
offers that relate to customer's his tory outsourcing CR 1 M
02. : (1) allow s org l eaders to focus on core competencies; (2) if CRM is core competency, you can s ave org money, identify
trends, anticipate problems, keep up with industry changes, & are better equipped to capture & process the data; (3) will train customer
service reps in org aniz ation; (4) must have clear performance expectations - SLA updated annually; (5) meas ure agains t expectations at
regular intervals - continuous monitoring to measure agai nst metrics a nd adjust when necessary; (6) maintain ultimate responsibility for
CRM - org still responsi ble even if outsource day-to-day ac tivities; (7) coordinate activities of multiple vendors an d share experience and
knowledge; (8) maintain exit strategy partnersh1ip
03. : type of supplier relationship w here length of relationshi p creates opportunity for increased understanding of each other's
organizations and increased efficiencies thru greater communication; (1) proximity - longer-term contracts; (2) visibility - full sharing of
goa ls, strategies, & tactics; (3) in teraction with competitors - limited; (4) communica tion - increased interaction; some trust; (5) culture -
awareness and adaptation to each other's culture performance aler 1 t 0 s
4. : automated alerts on areas of concern related to s upplier operational performance placeme 1 n 05 t
. : (1) traditionally refers to the way a product was s old - how it got into the hands of the customer (warehouse, retail outlets, direct
sales, catalog, internet); traditionally seen as one-way communication; (2) contact Channel Strategy - increase profitability by ensuring the
most cost-effective and customer-preferred channel is used and by securing lifetime customers thru effective customer care and customer
research activities; channel strategy cha racteristics: accessible, complete, s ecure and error-free, direct, convenient, fast, flexible, profitable;
(3) implications to CRM - identical products may be distributed thru different channelsbecause they match the communica tion an d contact
preferences of different customer groups plan for chan1g 0 e
6. : step 10 to successful alliance: partners must recognize and allow for inevitable changes (executive moves, organizational
restructuring, shi fts in regulatory environment); partners must plan for positive changes that need to occur within the allia nce prepare par tner 10 s
7. : step 3 to implementing SRM strategy: SRM management team negotiates a mutually beneficial Product & Service
Agreement (PSA) with selected suppliers; includes communication and continuous improvement plan pri1c 0 e
8. : (1) a strategic decision, based on competition, perceived value, a nd brand identity; if market is hig hly competitive and the product has
become a commodity, price will be dictated by the competitive situation; (2) In CRM, price and product are tightly connected ; it is one way to
differentiate products for specific customer segments; (3) must be analyzed to ensure structure is attractive to customers but still profitable to the business
proactive strategic alliance consideration 10 s
9. : (1) add value to products - if all iance improves time to market, gets product in h ands of
customers fas ter, or h elps ensure quality, it increases customer satisfaction, whi ch l eads to greater customer loyalty an d more profitable
lifetime customer; organizations have realized benefits when involving suppliers at early stages such as design process (decline in
purchased material costs, in crease in purchased material quality, decline in development time and cost and manufacturing cos ts, and an
increase in technology l evels); strategy for mass customization will provide competitive advantage but requires delivery of customized goods
quickly and efficiently at a low cost; (2) enable strategic growth - alliances enable organizations to combine resources to overcome barriers
to entry and search for and develop new opportunities; (3) inc rease market access - partnerships that lead to better advertisin g or increased
access to new market channels can be beneficial; (4) strengthen operations - building alliances helps improve operations by lowering
system costs and using resources more effectively; (5) Increase organizational expertise - partnerships in which technology is shared can
add to skills base of both organizations; (6) Build organizational skills - strategic alliances provide an excellent opportunity for learning
within the organization; organiz ations learn fromone another; become more adaptable; (7) Enhan ce financial strength - allia nces can
help improve overall financial position by increasing revenue while sharing administrative costs produ 1 c 10 t
. : (1) in tradit ional marketing, i t was static, perceived the same way by all customers; in CRM, it begins with customer need; (2) may
be designed to be customizable for specific segments to allow seller to adddesired value and product differentiation to sustain or grow profit;
value-added products impact CRM: (a) must be designed to fulfill customer expectations and pose few challenges for customer use; extensive
research and/or customer involvement' (b) must be manufactured or created to meet quality levels that satisfy customer expectations and
business profit margins , (c) promotion & distribution must be customized as well to address the distinctive needs of a segmented audience;
performance of the program must be tracked so that the it ca n be retooled for hig her performance, (d) sal es methods may need to be
customized and measured for effectiveness, (e) customer care personnel must also be familiar with each variation, i t's use, and potential problems product life cycle (PL 1 C 1 )
1. : stages a n ew product goes thru from beginnin g to end: development, i ntroduction, growth, maturity , decline product variety vs inventor 1 y
12. : product variety increases transportation and w arehousing costs (h igher mfg costs to make bigger variety of
products, smaller amts are transported to keep from impacting lead times, n eed more warehouse space for ea ch variety, demand is more
difficult since each product competes for s ame customer); delayed differentiation is one sol ution - ship generic products out as far as
possible, allowi ng variation to occur down the SC; p roduces more accurate demand plan, a llowing reduced safety stock
project complexity & s cope collaboratio 1 n
13. : projects involve large teams operating at different remote sites; information is more
important, in l arger amounts and more difficult to manage than ever before promotio 11 n
4. : (1) traditional activities a re still valid in CRM, but the level of research, s egmentation, and customization of the message or offer
is deeper; with CRM, businesses can capture information a bout every interaction with customers, allowi ng endless opportunity to study
buyer motivation and behaviors and to segment customers into groups with distinctive CRM programs; (2) customers are trans ferring their
loyalty away from products to the provider of the products; they give their business to these companies because they trust they will find the
products they are looking for and they will be taken care of if anything goes wrong; (3) businesses must keep in close contact with what
customers want and are buying so that they can continue to upgrade or customize products to meet those customer expectations; must also
ensure customer sa tisfaction; one failure is enough to undo brand image and drive the customer to the competitor prosp ective custom1e 1r
5. : CRM activities include market research, audience segmentation, and identifying right promo message and contact
cha nnel for various segments; as CRM develops, captured data can help sh ape future prospecting activities quick response program (QRP 11 )
6. : POS data is given to suppliers to synch ronize their production and inventory activities w ith sales at retailer reevaluate and innova 1 t 1 e
7. : step 5 integration strategy: once SC network is constructed, additional orga nizations a nd capabilities may need to
be transitioned into the network; ongoing grow th will require its own orga nization, strategy, and system of evaluation to succeed
roadblocks to implementing SRM & CR1M
18. : (1) technologica l limitations : (a) technica l problems may result from infrastructure that needs
to be integrated but there's no standard for doing so, (b) getting a ppropriate employees access to most beneficial info in formats useful a nd
understandable, ( c) systems are underpowered, overly complex, poorly designed, or j ust not right for jo b at ha nd; (2) participant resistance:
(a) organizations - fear conflicts of interest with SC partners; losing autonomy and sharing proprietary info; high cost of implementing new
technology or size of venture, (b) customers - fear of getting lost in n etwork; not know who to contact, (c) internal - lack of trust in SC
partners to sh are internal info and data; open to receiving but not willi ng to give, (d) distributors - distributor integration (DI) is when l arge
pools of inventory are created throughout the distributor network - distributors don't like because don't believe in rewards of participation;
fear of having to rely on other distributors, (e) suppliers - fear internet has reduce products to commodities w here price is more important
than quality or partnership; must bear cost of transaction fees sales force automation (SFA 11 )
9. : electronic method to collect and analyze customer information from marketing and contact center
departments to provide opportunities for customer retention a nd acquisition and to enh ance marketplace relationsh ips: (a ) contact
management - name, address, #, title, (b) account management - sales history; (s) ales process/activity management - sales process
methods developed to act as guide to sal es activity m anagement; (d) opportunity/pipeline management - converts leads i nto sales; (e)
quotation management - development of quotes for complex orders; (f) k nowledge mana gement - access to sources of info that are h oused in
each org anization a nd difficult to automate; policy handbooks, forms and templates for contracts, competitor ana lysis SCM collaboratio 1 n
20. : (1) Information mgmt tools - software has automated many SC business processes, leaving cost reductions and
increased efficiencies; (2) Online applications - online technology has given cross-channel teams ability to interweave common and
specialized knowledge, making collaboration easier and more seamless; optimizes productivity; (3) Analytical applications - data
warehousing an d mining applications a llow info from one application to be used by other applications (a nd organiza tions); this goes
beyond info sh aring. ..enables info analysis a nd decision making scorecard 12 s
1. : capture quantitative an d qualitative data and provide historical, plan, and predictive views of supplier performance; s hould be
sent on a regular basis; deficiencies shol d be addressed by supplier thru writte n corrective action plan securi 1 t 2 y
2. : protect individual files so that con fidential information cannot be accessed without prior validation segmentation by customer need 1 s
23. : specific product or service feature; preferred contact channels; customers search for best value, but value
doesn't mean price...could be convenience, trust in reliability, ease of return, etc. (val ue profile) segmentation by customer valu 12e
4. : his torically, a ll customers were treated the sa me, same level of service and charged the same fees for
products; today companies can treat customers differently depending on their contributions to the bottom line; greater customer value, better
treatment the customer gets; ironically, a small % of customers (20% or less) provide the most signi ficant % of revenue and profit; must
develop CRM strategies that (1) define 'valuable' customers - dominance, volume, profit ?; (2) deliver timely, detailed info that wil l help
companies identify most valued customers - most commonly used feature or service, most rapid form of shipping?; (3) measure impact - measuring segments in CRM?
segmentation by preferred chann 1 e 2 l
5. : technology has provided more options and better service and lowered costs of doing business for
companies; some offer potential savings for those willing to use technology channels; a CRM strategy must consider how receptive
customers are to this type of contact point select proper p artner 12 s
6. : step 2 to successful allia nce: look beyond strategic and financia l fit; corporate culture, operating style, business practices select supp lie1r 2 s
7. : step 3 certification process: cho oses suppliers to certify (new or exis ting) service channel technolog 12 y
8. : supports delivery of info, products, and s ervices to customers; web portals to access catalog , internet, pricing ,
configure order, email - self service functions sources of customer in1f2o
9. : transaction records - purchase frequency, volume, and how financed; sales reps - what customers are asking for,
wha t they're not interested in, concerns in maki ng purchase, wh y are orare not considering competition; distribution points - customer
values, purchas ing h abits and preferences; service reps - how products are currently being used and how they would like to use them;
purchased data - survey companies, database marketing companies, and service bureaus provide broad info a bout customer p ool; may be
useful in acquiring new customers SRM & buye 13 r
0. : assumes more tactical role that manages supply, issues POs, tracks orders, resolves discrepancies in orders or accounts,
monitors performance of suppliers and issues report s on timeliness, completion, and quality of work SRM & purchasing mg 13 r
1. : more strategic role that identifies strategies to add value to product thru manag ing supplier relationship,
iIdentifies and researches strategic partners, develops certification s tandards and programs for i mproving supplier performance, n egotiates
long-term contracts, serve on cross-functional team to develop process to integrate workflow & sh are info, enforces compliance with
sourcing contracts, assemble and manage sourcing risk portfolio. manages relationship with strategic sourcing partners, analyzes
purchase data to report impact on corporate goal s SRM processin 13 g
2. : goal is to s treamline procurement process for goods and services necessary to make products and run the organi zation;
may manage catalogs, requisitioning, RFQs, shopping tools, auctions, PO generation and tracking, logis tics SRM servic1e 3 s
3. : transforms services that were traditional ly used to execute procurement processes; offers a level of service features tha t include
online catalogs, special pricing, payment processing, after-sale support
strategic alliance consideration 13 s
4. : (1) strategic importance - if component is critical to product differentiation or i nvolves proprietary
knowledge, then make in -house; if ca n't or expertise outside core competency, then firm must form strategic all iance with valuable supplier;
(2) # of suppliers - i f only 1 supplier availa ble, then strategic allian ce is warranted to ensure availability; (3) complexity - more complex the
relationship between component and final product, the more value ther e will be in col laborative design; (4) uncertainty - if s ourcing
relationship has potential to jeopardize attaining business objective, the buying firm should develop close relationship with s upplier; (5)
new relationship - if new supplier, relationship must be managed carefully strategic alliance 13 s
5. : (1) relationship formed by 2 or more organization's that sha re information, participate in joint investments, and develop
linked and common processes to increase performance of both companies; (2) goals for these relations hips may in clude cost reduction,
quality improvement, better delivery performance, increased flexi bility, or new product introdu ctions; alliances must be flexible and each
partner must bring value to the relationship; (3) different from joint venture; joint ventures agree to create new entity & then share in
revenues, expenses, and control; strategic alliances involves no equity stake by participants and is much less rigid arrangement; (4) when
searching for strategic all iance, one must consider the suppliers' competencies, their abil ity to deliver required services, product and service
quality level, capacity for innovation, w illin gness to collaborate, and most importantly their customer focus strategic pha1s 3 e
6. : CTM phase 1 defines front-end agreement to collaborate and formalize per iod of time and sc ope of relationship; specify
party to manage carrier and how gained benefits will be shared
strategic sourcing and business entitie 13s
7. :traditional purchasing never crosses boundaries that distinguish 2 business entities; strategic
sourcing allows opportunities for realignment and collaborative business processes, info flows, and workflows - can reduce # of PO's and
inventory costs; decreases bullwhip
strategic sourcing and collaboratio 1 n
38. : traditional purchasing is transactional; strategic sourcing is collaborative - under SRM, company
shares info with suppliers in real-time, cutting material costs, minimizing inventory, reducing shortages, & expediting deliveries; supplier
can participate in improving system, wh ich leads to better produ ct, higher customer sa tisfaction, and better customer retention
strategic sourcing and info sharin 13 g
9. : traditional purchasing benefits from technolog y but cannot implem ent technology to the s ame
degree as strategic sourcing can - use of internet & compatible software systems allow purchasers and suppliers to chare info and
synchroni ze supply and demand from any point in SC; benefits include reduced cycle time, increased in ventory turns, and allowing
purchasers to focus on more strategic activities instead of low -value ones
strategic sourcing and purchasin 1 g
40. : traditional purchas ing focuses on purchase price; strategic sourcing focuses on true cost to the
customer - total cost of own ership (TCO) is considered (purchase price, transportation costs, duties, l ead time, ICC); ultimate goal is to
control costs while providing goods throughout wide-reaching SC network
strategic sourcing and visibili 1 t 4 y
1. : traditional purchas ing does not increase the visibility of the entire SC the way strategic sourcing does -
expanded info sharing can lessen the bullwhip effect, provide early problem detection, fas ter response time, better contingency plan ning ,
and stronger relationsh ips because of increased trust supplier co-locatio 14 n
2. : practice of locating one or more suppliers within a single location; primary benefit is highly integrated operations and
supplier can become integral part of business; allow s problems to be addressed quickly; reduced concept-to-customer time
supplier performance measurement syste1m
43. : tracks performance of broad portion of SC base, collaborates with suppliers on
performance measures, reporting, and improvements, automates key supplier performance measurement activities; and standardizes
supplier performance measurement procedures a cross the organization supplier rating syste 1 m
44. :way to set supplier performance standards, measure performance aga inst those standards, and take steps to
improve supplier performance (like certification), and a lso include data from SC information s ystems a nd occur more often to capture
ongoing performance levels; tool to measure and correct performance immediately
supplier relationship management (SRM 14 )
5. : the way in which relations hips w ith suppliers are developed and maintained to meet general
goa ls of ensuring mutual profitability while meeting marketplace demands; may not apply to all suppliers, only those select who h ave been
identified as key partners in the SC; stresses mutual profitability and meeting marketplace needs over individual profitability and individual
needs; finding and building ongoing relationships with those trading partners who account for the majority of an organization's
purchasing funds and w ho provide materials or services that are key elements in the final product or service; it is a methodology to structure
and support relationships with suppliers that will assist in:
(a) red ucing procurement expenses and excess inventory; (b) support customer-focused busines s that delivers product customization in time
frame; (c) improve processes in an on-going manner surve 1 ys
46. : sent to SC manag ers in order to gather qualitative info on performance of suppliers; address overall performance, reliability, cost,
order accuracy, delivery/timeliness, quality, business relationshi p, personnel, customer support, responsiveness, etc. tactical pha1s 4 e
7. : CTM phase 2 defines process flow; s hipping forecast is sha red so they can determine where and how the projected forecasts can be supported time line performanc 14e
8. : tracks difference between PO schedule and a ctual receipt date and i dentifies pas t due, undelivered, and unauthorized deliveries virtual organizatio 14n
9. : organi zations cooperate based on mutual values a nd act as a si ngle entity to 3rd parties VM 15 I
0. : vendors have access to customers' inventory data for items they supply and are responsible for maintaining inventory levels required by
customer; inventory levels at store or DC can gradually be reduced as long a s OO S and SLAs are met voice of the custom1e 5 r
1. : actual customer descriptions in their words for functions a nd features customers wan t in products and services; used
when it might not be easy to ask the right question; used to gauge after-sal es service, order processing , billing, or delivery and new product
design; , ay help uncover unstated customer expectations or needs; sh ould give voice to thing s a company wouldn't ordinaril y hear vulnerable custom1e 5 r
2. : CRM data critical in early and accurate identification of vulnerable customers and in analyzing the most effective
promotional retention programs; predictive churn model uses customer info to anticipate what groups a nd at w hat levels customer attrition
may occur - target special promotions to keep those customers tha t still have value web processin 15 g
3. : technology must be able to handle larg e transactions and data communication volumes and support decision -making
applications; equipped to perform load balancing across multiple servers to ensure performance a nd hig h availability of web-accessed applications why CR 1 M
54. : (1) today's customer is harder and more expensive to win and keep; (2) advances in technolo gy and competition in a free
marketplace have benefited customers by rai sing expectations for quality, trouble-free products and services; (3) today's customer ass umes
products will be of high quality, the competitive advantage is price or value; internet makes it easy to shop price, so market expands from
neighborhood retailer to globa l marketplace or eager sellers why SR1M
55. : (1) con solidation has led to larger, but fewer customers that are better able to set terms that wil l lower their own costs; la rge
customers have fewer suppliers to choos e from and less flexibility in terms to negotiate; (2) pressure on price and profit margin has l ed to
greater integration of manufacturers wi th suppliers; (3) if product is a true commodity, SC must compete on price and availabili ty and cost-
effective performance w ill be crucial; a chieving and maintain ing that performance will require close integration among SC partners, from
planning thru order tracking and replenishment win-back custome 15r
6. : communication should be made immediately within the 1st w eek after the customer has discontinued service; rapid
communication bet ween different parts of the company is essential; automated CRM programs can trigger implementation of w in-back
programs as soon as customer relationship is terminated workflo 1 w
57. : provides path for users to move thru the sys tem and make purchases an d payments; incl udes business rules definitions, workflow engine, worklflow definitions workflow management system 15s
8. : provides framework for customer-focused activities such as customer service an d order management;
automates procedures that pass along documents, info and tasks to other users