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Chapter 3

CCT225H5 Chapter Notes - Chapter 3: Supply Chain, Progressive Corporation, Switching Barriers


Department
Communication, Culture and Technology
Course Code
CCT225H5
Professor
Gordon Lucas
Chapter
3

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Chapter 3 Implementing Competitive Advantage
Strategic Initiatives
Supply Chain Management
Supply chain management (SCM) 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:
o Supply chain strategy strategy for managing all the resources
required to meet customer demand for all products and services
o Supply chain partners partners chosen to deliver finished products,
raw materials, and services including pricing, delivery, and payment
processes along with partner relationship monitoring metrics
o Supply chain operation the schedule for production activities
including testing, packaging, and preparation for delivery
o Supply chain logistics the product delivery processes and elements
including orders, warehouses, carriers, defective product returns, and
invoicing
Effective and efficient supply chain management systems can enable an
organization to:
o Decrease the power of its buyers
o Increase its own supplier power
o Increase switching costs to reduce the threat of substitute products or
services
o Create entry barriers thereby reducing the threat of new entrants
o Increase efficiencies while seeking a competitive advantage through cost
leadership
Customer Relationship Management
Customer relationship management (CRM) involves managing all aspects
of a customers relationship with an organization to increase customer loyalty
and retention and an organizations profitability
Allows an organization to gain insights into customers shopping and buying
behaviors in order to develop and implement enterprisewide strategies
Can be enhanced with technology
CRM system tracks every communication between the customer and the
organization and provides access to CRM information within different systems
from accounting to order fulfillment
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