Chapter 3 : Strategic Initiatives for Implementing Competitive Advantages

Learning Outcomes:

1. List and describe the four basic components of supply chain management
2. Explain customer relationship management systems and how they can help organizations understand their customers
3. Summarize the importance of enterprise resource planning systems
4. Identify how an organization can use business process reengineering to improve its business

Strategic Initiatives

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• Supply Chain Management (SCM) - involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
• Four basic components of supply chain management include : 

1. Supply Chain Strategy - managing all resources to meet customer demand
2. Supply Chain Partner - partners throughout the supply chain that deliver finished products, raw materials and service
3. Supply Chain Operations - schedule for production activities
4. Supply Chain Logistics - product delivery process

• Customer Relationship Management (CRM) - involves managing aspects of a customers relationship with an organization to increase customer loyalty and retention and an organization profitability
• CRM enable an organization to identify types of customers, design individual customer marketing campaigns, treat each customer as an individual and understand customer buying behaviours

• Business Process Reengineering (BPR) - a standardized set of activities that accomplish a specific task such as processing a customer order
• The analysis and redesign of workflow within and between enterprises

• Enterprise Resource Planning (ERP) - integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information 
• ERP stand for enterprise