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SUPPLY CHAIN MANAGEMENT - Coggle Diagram
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT (SCM)
Components
External Suppliers
Provide raw materials, services & component parts
Internal Functions
Processing, purchasing, production planning & control, QA & shipping
External Distributors
Logistic & distribution
Importance
Reduce Cost
Decrease Purchasing Cost
Decrease Production Cost
Improving Efficiency
Right quantity & quality
Satisfying Demand
On-time Delivery
After Sales Services
Definiton
Procure materials & services, transform them into intermediate goods & final products
ENTERPRISE RESOURCE PLANNING (ERP)
Objective
Integrate all departments & functions
Benefits
Productivity
Save Money
Customer Services
Security
Definition
To use a system of integrated applications
CUSTOMER PROFITABILITY ANALYSIS (CPA)
Advantages
Understanding of the true costs of each customer segments
Identified customer groups
Improved profitability
Improved strategic decision making
Disadvantages
Impractical
Overlook the combinations of products/services purchased by customers
Inaccurate estimation of customer segmental revenues & costs
Annual profitability may not be representative of lifetime value
Analysis
Customer Revenue Analysis
Activities affect the net amount received customers
Customer Cost Analysis
Identifies activities and cost drivers to
service customers
Definition
Analysis of the revenue streams & service costs associated with specific customers/ customer groups
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Definiton
Helps businesses retain & maintain long-term
customer relationships
Importance
Analysis
Communication
Data Base
Customer Care
Documentation