Discuss How the Three Supply Chain Macro Processes Interface in Order

Question

Examlex · Accepted Answer

The Answer is The goal of the CRM macro process is to generate customer demand and facilitate transmission and tracking of orders.Weakness in this process results in demand being lost and a poor customer experience because orders are not processed and executed effectively.CRM processes are crucial to the supply chain as they cover a vast amount of interaction between an enterprise and its customers.The customer must be the starting point when trying to increase the supply chain surplus because all demand,and therefore revenue,ultimately arises from them.Thus,the CRM macro process is the starting point when improving supply chain performance.It is also important to note that CRM processes (and also CRM software)must be integrated with internal operations to optimize performance.Too often companies operate with their customer-focused units working independently from their internal operations.The need for integration between CRM and internal operations emphasizes the importance of CRM to an effective supply chain.
ISCM includes all processes involved in planning for and fulfilling a customer order.Given that the ISCM macro process aims to fulfill demand that is generated by CRM processes,there needs to be strong integration between the ISCM and CRM macro processes.When forecasting demand,interaction with CRM is essential,as the CRM applications are touching the customer and have the most data and insight on customer behavior.Similarly,the ISCM processes should have strong integration with the SRM macro process.Supply planning,fulfillment,and field service are all dependent on suppliers and therefore the SRM processes.It is of little use for your factory to have the production capacity to meet demand if your supplier cannot supply the parts to make your product.Order management,which we discussed in CRM,must integrate closely with fulfillment and be an input for effective demand planning.Again,good supply chain management requires that we integrate across the macro processes.
Significant improvement in supply chain performance can be achieved if SRM processes are well integrated with appropriate CRM and ISCM processes.For instance,when designing a product,incorporating input from customers is a natural way to improve the design.This would require inputs from processes within CRM.Sourcing,negotiating,buying,and collaborating primarily tie into ISCM as supplier inputs are needed to produce and execute an optimal plan.But even these segments have the need to interface with CRM processes such as order management.
Integrating the three macro processes is crucial for improved supply chain performance.

Discuss How the Three Supply Chain Macro Processes Interface in Order

Definitions: