Link CRM to SCM

For any business to extract maximum benefit fromproduction, and a lean supply chain that responds to
its CRM deployment, it is important that it be linkeddemands quickly. All this not only helps cut costs but
to the back processes. Supply chain management,also acquire a competitive advantage for a business
when connected via business intelligence tools withthat can take the lead in offering a better buying
CRM, can throw light on many hitherto unknownexperience and service level that competitors may
aspects of a company's business processes.not be able to offer.
The insight offered by CRM into customer behaviorAn efficient and responsive supply chain can have a
and demand patterns can be made use of tohuge positive impact on store product segmentation
streamline manufacturing and distribution of productsand effective customer targeting. Integration
as managed by the supply chain function. Anbetween CRM and SCM improves communication
important feature to understand when deployingbetween the store and the manufacturing. For retail
CRM is that it can only provide information that hasbusinesses such integration can imply a lot of benefits
to be used both at the front end and back end tosuch as better distribution to retail outlets over
improve processes. Customer segmentationvarious geographic locations; feedback to suppliers,
information can be used to structure the purchase ofdistributors, transporters, etc. The use of BI for
raw materials, scheduling manufacturing, managingpredicting performance at individual stores that can
inventory, and overall running the supply chain. Abe aggregated to obtain a holistic picture of the
business can obtain major cost savings by actingsupply chain is relevant to the entire exercise.
upon information from CRM systems.Businesses can ensure the availability of quick-moving
A streamlined supply chain is key to reaching out toitems and reduce the likelihood of losing customers.
the right consumer at the right time and CRM offersA wider view of the happenings at the retail level can
inputs on providing the customers with the rightalso help to take ad hoc decisions when pressed for
product mix and targeting them with appropriatetime. Marketing and sales can coordinate more
marketing. A backward integration of processesfruitfully with the supply chain to move or divert
taking into account the information obtained fromgoods to given locations during peak seasons or for
CRM can help a business better allocate its resourcespromotional purposes. Viewing data pulled from
be they in manufacturing, processing, marketing, ormarketing, sales, supply chain, finance etc on a single
sales. Apportioning of raw materials to machines anddashboard can enable management as well as store
machines to a given product can be done moremanagers to take profitable decisions on cross-selling
accurately if market demands are known; it alsoand up-selling across different channels.
leads to a reduction of inventory stocks, JIT