Processing Chapter Three

   Greeting and salutation. How is everyone doing? I hope you are doing well wherever you may be. Let us get started with the third chapter, shall we? Well, we have learnt about Strategic Initiatives for Implementing Competitive Advantages. In this topic we were taught about the four basic components of supply chain management (SCM), the customer relationship management (CRM) systems and how they can help organizations understand their customers, the importance of enterprise resource planning (ERP) systems and lastly, how an organization can use business process reengineering (BPR) to improve its business. This chapter interest me because it has taught me about the strategic initiative used by companies all around the world and it helped me understand how an organization can gain its competitive advantages and business efficiencies.

Supply Chain Management (SCM)

   Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. Dozens of steps are required to achieve and carry out each of the preceding components. SCM software can allows an organization to generate efficiencies within these different supply chain components. Here are the four basic components are:

Supply chain strategy – strategy for managing all resources to meet customer demand.

Supply chain partner – partners throughout the supply chain that deliver finished products, raw materials, and services.

Supply chain operation – schedule for production activities.

Supply chain logistics – product delivery process.

Customer Relationship Management ( CRM)

   This strategy involves managing all aspects of customer’s relationship with an organization to increase customer loyalty, retention and organization profitability. This strategic allows an organization to gain insights into customer’s shopping and buying behaviours in order to develop and implement enterprise-wide strategy. The CRM system can be seen as below.

Business Process Reengineering (BPR)

   Alone, business process means a standardized set of activities that accomplish a specific task, such as processing a customer’s order. However, Business process reengineering means the analysis and redesign of workflow within and between enterprises to make all business processes best in class. BPR highlights the classical belief that there is only one best way to conduct tasks. Unfortunately, BPR has it’s pitfall which is the company becomes so wrapped up in fighting its own demons that it fails to keep up with its competitors in offering new products or services.

                                                       The seven principle of Business Process Reengineering.

Enterprise Resource Planning ( ERP)

   ERP integrates 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. In the ERP systems, it collects data from across an organization and correlates the data generating an enterprise-wide view.

  Thank you so much for reading this long as post. Have a great day ahead!!