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Achieving Operational Excellence and Customer Intimacy

Enterprise Software

Built around thousands of predefined business processes that reflect best practices.

Supply Chain

Network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, distributing the finished products to customers.

Upstream (Supply chain)

Includes the company's suppliers, the suppliers suppliers, and the processes for managing relationships with them.

Downstream (supply chain)

Consists of orgs and processes for distributing and delivering products to final customers.

Internal Supply Chain

supply chain within company

Just-in-time strategy

Components arrive exactly at the moment they were needed and finished goods would be shipped as they left the assembly line.

bullwhip effect

Info about the demand for a product gets distorted as it passes from one entity to the next across the supply chain.

Supply Chain planning systems

enable the firm to model its existing supply chain, generate demand forecasts for products and develop optimal sourcing and manufacturing plans.

Demand Planning

Determines how much product a business needs to make to satisfy all of its customers demands, most important/complex supply chain function.

Supply Chain Execution Systems

Manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.

Push-based Model

Production master schedules are based on forecasts or best guesses of demand for products, and products are pushed to customers.

Pull-based model

Actual customer orders or purchases trigger events in the supply chain, aka demand driven model/build-to-order

Touch Point

method of interaction with the customer, such as telephone, email, customer service desk etc.

Partner relationship management (PRM)

M uses many of the same data, tools, and systems as customer relationship manage-ment to enhance collaboration between a company and its selling partners.

Employee relationship management (ERM)

e deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensa-tion, and employee training. Major CRM application software vendors include Oracle-owned Siebel and PeopleSoft CRM, SAP,, and Microsoft Dynamics CRM.


marketing of complementary products to customers.

Operational CRM

Customer facing applications, call center and customer service support, and marketing automation.

Analytical CRM

includes applications that analyze customer data generated by operational CRM applications to provide info for improving business performance.

Customer lifetime value (CLTV)

based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between cust and comp.

churn rate

measures the number of customers who stop using or purchasing products or services from a company.

Service Platform

integrates multiple applications from mult. business functions, buesiness units or business partners to deliver a seamless experience for the customer, employee, manager or business partner.

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