Chapter 3 . Strategic Initiatives for Implementing Competitive Advantages

STRATEGIC INITIATIVES

- Supply Chain Management (SCM)

- Customer Relationship Management (CRM)

- Business Process Reengineering (BPR)

- Enterprise Resources Planning (ERP)

 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 :

i) Supply chain strategy - strategy for managing all resources to meet customer demand

ii) Supply chain partner -  partners throughout the supply chain that deliver finished products, raw materials and services

iii) Supply chain operator - schedule for production activities

iv) Supply chain logistics - product delivery process

* Advantages of effective and efficient SCM :

- Decrease the power of its buyers

- Increase switching costs to reduce the threat of substitute products or services

- Increase its own supplier power

- Create entry barriers thereby reducing the threat of new entrants

- Increase efficiency while seeking a competitive advantage through cost leadership

Customer Relationship Management (CRM)

" involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and also an organization's profitability "

- no just technology, but also a strategy

- business goal that an organization must embrace on an enterprise wide level 

CRM can enable an organization to :

- Identify types of customers

- Design individual customer marketing campaigns

- Treat each customer as an individual

- Understand customer buying behaviors

Business Process Reengineering (BPR)

 " the analysis and redesign of workflow within and between enterprises "

- the purpose is to make all business process best-in-class

Business Process - a standardized set of activities that accomplish a specific task, such as processing a customer's order

 Enterprise Resources Planning (EPR)

" integrate all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations "

- Keyword in ERP is "enterprise"

okay . that's all from me on chapter 3. so, in this chapter we had learn :

- how to list and describe the four basic components of supply chain management

- how to explain customer relationship management systems and how they can help organizations understand their customers

- how to summarize the importance of enterprise resource planning systems

- how to identify how an organization can use business process reengineering to improve its business

okay then . good luck in your study guys . Allah always besides us ;)