Supply Chain Management (SCM) and Customer Relationship Management (CRM) vs. Enterprise Resource System (ERP) a Comparative Paper.
Enterprise Resource Planning System (ERP), also referred to as the traditional management system, was generated from the MRP or the Material Requirement Systems. Companies have utilized this system for well over 25 years. In its primary set up, the MRP stores data related to inventory control and production planning. The system is widespread with the use of one its system with the largest market share, the SAP system is the primary base system for over 60 percent of multinational companies. Many companies have been influenced by ERP over the years, including both small and medium size businesses; it is the…show more content… However, unlike SCM, Customer relationships management further breaks down these components to further impact its implementation. On the organizational level, the firm takes a look at integration, commitment and system readiness and moreover, on the strategic issues, the firm considers vision planning and customer based cultured. Lastly, the 3rd component added to the mix for a successful implementation is the cultural foundation which consists of networking and human interaction. All of these components and sub-parts combine with comprehensive customer knowledge, contributes to a successful CRM implementation. This method “emphasizes the importance of continuously identifying and satisfying customers’ ever-changing needs by the facilitation of appropriate organizational structure and management approaches” (Stefanou et al. 2003).
By comparison in their approach, the CRM unlike the SCM, establishes long-term relationships, combine with customer knowledge and in most cases a customer-based-focus along with a determined strategy. By impressive results, the long-term relation aspect of the CRM is fundamental and essential for the implementation. “This notion is closely related to an awareness of the positive correlation between customer retention and a company’s profitability” (Reichheld et al., 2000).
By the same token both SCM and CRM lays claim to customer
