E-COMMERCE

Submitted By:
Naman Kanwar
B.Com(Hons)
Section A
3 Semester
Question- Explain CRM and Supply chain
management.
CRM- Customer Relationship Management (CRM) is
the process of managing interactions with existing as
well as past and potential customers. It is one of many
different approaches that allow a company to manage
and analyse its own interactions with its past, current
and potential customers. It uses data analysis about
customers' history with a company to improve
business relationships with customers, specifically
focusing on customer retention and ultimately
driving sales growth.
One important aspect of the CRM approach is the
systems of CRM compile data from a range of different
communication channels, including a company's
website, telephone, email, live chat, marketing
materials and more recently, social media.
Through the CRM approach and the systems used to
facilitate it, businesses learn more about their target
audiences and how to best cater for their needs.

HISTORY:
The concept of customer relationship management
started in the early 1970s, when customer satisfaction
was evaluated using annual surveys or by front-line
asking. At that time, businesses had to rely
on standalone mainframe systems to automate sales,
but the extent of technology allowed them to
categorize customers in spreadsheets and lists. In
1982, Kate and Robert D. Kestnbaum introduced the
concept of Database marketing, namely applying
statistical methods to analyze and gather customer
data. By 1986, Pat Sullivan and Mike Muhney released
a customer evaluation system called ACT based on the
principle of digital rolodex, which offered a contact
management service for the first time.The trend was
followed by numerous companies and independent
developers trying to maximize leads' potential,
including Tom Siebel, who designed the first CRM
product Siebel Systems in 1993.In order to compete
with these new and quickly growing stand-alone CRM
solutions the established enterprise resource
planning (ERP) software companies like Oracle, SAP,
Peoplesoft and Navision started extending their sales,
distribution and customer service capabilities
with embedded CRM modules. This included
embedding sales force automation or extended
customer service (e.g. inquiry, activity management) as
CRM features in their ERP.

Customer relationship management was popularized in

1997, due to the work of Siebel, Gartner, and IBM.
Between 1997 and 2000, leading CRM products were
enriched with shipping and marketing
capabilities.[8] Siebel introduced the first mobile CRM
app called Siebel Sales Handheld in 1999. The idea of a
stand-alone, cloud-hosted and moveable customer
bases was soon adopted by other leading providers at
the time,
including PeopleSoft, Oracle, SAP and Salesforce.com.I
n 2013 and 2014, most of the popular CRM products
were linked to business intelligence systems and
communication software to improve corporate
communication and end-users' experience. The leading
trend is to replace standardized CRM solutions with
industry-specific ones, or to make them customizable
enough to meet the needs of every business.

TYPES:
Strategic: Strategic CRM is concentrated upon the
development of a customer-centric business culture.
The focus of a business on
being customer-centric (in design and implementation
of their CRM strategy) will translate into an improved
CLV.
Operational: The primary goal of customer relationship
management systems is to integrate
and automate sales, marketing, and customer support.
Therefore, these systems typically have a dashboard
that gives an overall view of the three functions on
a single customer view, a single page for each
customer that a company may have. The dashboard
may provide client information, past sales, previous
marketing efforts, and more, summarizing all of the
relationships between the customer and the firm.
Operational CRM is made up of 3 main components:
sales force automation, marketing automation, and
service automation.
Analytical: The role of analytical CRM systems is to
analyze customer data collected through multiple
sources and present it so that business managers can
make more informed decisions.Analytical CRM systems
use techniques such as data mining, correlation,
and pattern recognition to analyze the customer data.
These analytics help improve customer service by
finding small problems which can be solved, perhaps
by marketing to different parts of a consumer audience
differently.
Collaborative: The third primary aim of CRM systems is
to incorporate external stakeholders such as suppliers,
vendors, and distributors, and share customer
information across groups/departments and
organisations. For example, feedback can be collected
from technical support calls, which could help provide
direction for marketing products and services to that
particular customer in the future.
Customer Data Platform: A customer data
platform (CDP) is a computer system used by
marketing departments that assembles data about
individual people from various sources into one
database, with which other software systems can
interact. As of February 2017 there were about twenty
companies selling such systems and revenue for them
was around US$300 million.

Components:

The main components of CRM are building and

managing customer relationships through marketing,
observing relationships as they mature through distinct
phases, managing these relationships at each stage and
recognizing that the distribution of value of a
relationship to the firm is not homogeneous. When
building and managing customer relationships through
marketing, firms might benefit from using a variety of
tools to help organizational design, incentive schemes,
customer structures, and more to optimize the reach
of its marketing campaigns. Relational Intelligence, or
awareness of the variety of relationships a customer
can have with a firm, is an important component to the
main phases of CRM. Companies may be good at
capturing demographic data, such as gender, age,
income, and education, and connecting them with
purchasing information to categorize customers
into profitability tiers, but this is only a firm's
mechanical view of customer relationships.

CRM System Include –

Data warehouse technology, used to aggregate
transaction information, to merge the information with
CRM products, and to provide key performance
indicators.
Opportunity management which helps the company to
manage unpredictable growth and demand, and
implement a good forecasting model to integrate sales
history with sales projections.
CRM systems that track and measure marketing
campaigns over multiple networks, tracking customer
analysis by customer clicks and sales.
Some CRM software is available as a software as a
service (SaaS), delivered via the internet and accessed
via a web browser instead of being installed on a local
computer. Businesses using the software do not
purchase it, but typically pay a recurring subscription
fee to the software vendor.
For small businesses a CRM system may consist of a
contact manager system that integrates emails,
documents, jobs, faxes, and scheduling for individual
accounts. CRM systems available for specific markets
(legal, finance) frequently focus on event management
and relationship tracking as opposed to financial return
on investment (ROI).
CRM systems for eCommerce, focused on marketing
automation tasks, like: cart rescue, re-engage users
with email, personalization.
Customer-centric relationship management (CCRM) is
a nascent sub-discipline that focuses on customer
preferences instead of customer leverage. CCRM aims
to add value by engaging customers in individual,
interactive relationships.
Systems for non-profit and membership-based
organizations help track constituents, fundraising,
sponsors' demographics, membership levels,
membership directories, volunteering and
communication with individuals.
CRM not only indicates to technology and strategy but
also indicates to an integrated approach which includes
employes knowledge, organizational culture to em-
brass the CRM philosophy.
SUPPLY CHAIN MANAGEMENT:

Supply chain management is the management of the

flow of goods and services and includes all processes
that transform raw materials into final products. It
involves the active streamlining of a business's supply-
side activities to maximize customer value and gain a
competitive advantage in the marketplace.A supply
chain is the connected network of individuals,
organizations, resources, activities, and technologies
involved in the manufacture and sale of a product or
service. A supply chain starts with the delivery of raw
materials from a supplier to a manufacturer and ends
with the delivery of the finished product or service to
the end consumer.

Benefits Of Supply Chain Management:

Supply chain management creates a number of
benefits that translate to higher profits, better brand
image and greater competitive advantage. These
include the following:
1- Better ability to predict and meet customer demand.
2- Better supply chain visibility, risk management and
predictive capabilities.
3- Fewer process inefficiencies and less product waste.
4- Improvements in quality.
5- Increased sustainability, both from a societal and an
environmental standpoint.
6- Lower overhead.
7- Improvements in cash flow.
8- More efficient logistics.

Five Stages of Supply Chain Management:

Supply chain management can be broadly categorized
into five steps or areas:
Plan:
Using supply chain analytics and materials
management features in ERP systems, organizations
create strategic plans to meet customer demand for
product and avoid a bullwhip effect.
Source. Organizations identify and select vendors that
can supply materials in a streamlined and efficient way
according to agreements. Supply chain collaboration
starts at this stage and is important throughout the
supply chain management process.
Make:
In this stage, products are manufactured. It includes
scheduling the production, testing, ensuring
compliance requirements are followed, packing,
storage and release. Multiple machines are likely to be
involved, especially for larger companies, and these
increasingly use technologies such as IoT and AI to
work more efficiently.
Deliver:
The delivery stage pertains to logistics and focuses on
getting finished goods to consumers, in whatever
manner of transportation is needed.
Return:
The return stage includes all product returns, including
defective products and products that will no longer be
supported. This stage also includes elements from
other stages, including inventory and transportation
management.

Tax-efficient supply-chain management:

Tax-efficient supply-chain management is a business
model that considers the effect of tax in the design and
implementation of supply-chain management. As the
consequence of globalization, cross-national
businesses pay different tax rates in different
countries. Due to these differences, they may legally
optimize their supply chain and increase profits based
on tax efficiency.

EXAMPLE -
The most basic version of a supply chain includes a
company, its suppliers and the customers of that
company. An example would be: raw material
producer, manufacturer, distributor, retailer and retail
customer.Most supply chains are far more complex
and layered. This is why examples of unsuccessful
supply chain management, where risk is not managed
or disruption occurs, can be so helpful. Food shortages
due to COVID-19 are a good example of supply chain
management gone awry. The food supply chain was
disrupted in a number of ways. For example, many
restaurants and schools closed to accommodate stay-
at-home orders, causing products meant to go to
institutional settings in bulk to no longer be needed.
Instead, an exponential number of consumers were
eating at home, which had different packaging
requirements, among other issues. The meat industry
also ran into supply chain management disruptions due
to issues such as COVID-19 outbreaks in
slaughterhouses.