Class Test 1 SCM

CLASS TEST – 1
06/10/21
NAME – VIVEK BHARDWAJ

ROLL NO – 2K20/UMBA/49
SUBJECT – SCM & E-COMMERCE
ANS 1. The various processes included in internal supply chain management

are as follows:
• STRATEGIC PLANNING.
It is also known as supply chain design or supply chain strategy. The high level
of planning necessitates long-term decision-making (usually 3 to 10 years). It
has an impact on the development of policies and processes for procurement,
production, and logistics in order to achieve the company's long-term goals. It
establishes the groundwork for the processes required for the whole supply
chain to function successfully and efficiently. Decisions at this level are
carefully chosen since their influence on the business is significant; hence, it is
a crucial component of supply chain management.
Example: deciding upon the distribution facilities i.e when and where they are
needed, increase in revenue, mergers and acquisition, etc.
• DEMAND PLANNING.
Demand planning is a supply chain management technique that forecasts or
predicts product demand in order to assure delivery and customer satisfaction.
The objective is to achieve a balance between having enough inventory to fulfil
consumer demands and having a surplus. Demand can be influenced by a wide
range of variables, including workforce changes, economic upheavals, extreme
weather, natural catastrophes, and global crises events.
• SUPPLY PLANNING.
The process of predicting demand for items and arranging their supplies and
components, manufacture, marketing, distribution, and sale is known as supply
chain planning (SCP). Its main objective is to balance supply and demand so
that sales income possibilities are completely utilized in a timely and cost-
effective way.
• FULFILLMENT.
In the process, it strives to meet the needs of the consumers. It is a multi-step
process that entails creating a framework or a method to cut costs.
Furthermore, it necessitates the formation of a cross-functional network with
all SCM stakeholders, as well as coordination among them, as well as effective
logistics management. A well-executed order fulfilment method contributes to
overall SCM quality.
• FIELD SERVICE.
It provides insight into inventory information, allowing them to adjust
inventory levels and perform material transfers. Furthermore, firms installing
or repairing sold items will benefit from improved control and visibility of the
whole sales and service process through project integration.
TMF (TRANSACTION MANAGEMENT FOUNDATION) - consists of core ERP

systems and its components, such as financial and human resources,
infrastructure software, and integration software. The TMF has historically
housed the world's major enterprise software players. When most of the
thinking in supply chain management was just getting started and ERP systems
were rapidly gaining popularity in the early 1990s, there was minimal emphasis
on the three macro processes SRM, ISCM, and CRM. In reality, there was
minimal emphasis on software applications that focused on enhancing
judgments at the time; instead, the emphasis was on developing transaction
management and process automation systems that served as the foundation
for future decision support applications. During the 1990s, there was a
significant demand for the system, causing ERP players to become the largest
enterprise software businesses.
SAP remained the market leader, but other formidable ERP contenders
included Oracle, PeopleSoft, JD Edwards, and Baan. The true benefit of the
transactions management foundation can only be realized if supply chain
decision-making is enhanced. Companies focusing on enhancing decision
making in the three macro processes have driven the most recent growth in
corporate software. ERP providers who focus on integrating across macro
processes as well as providing strong functionality in one or more
microprocessors will maintain a competitive advantage.
ANS 2. The CRM macro process's purpose is to build consumer demand and
make order transmission and tracking easier. Because orders are not
processed and executed properly, there is a loss of demand and a bad
customer experience as a result of this process's flaws. CRM operations are
critical to the supply chain because they involve a large amount of
communication between a company and its customers. When attempting to
increase supply chain excess, the customer must be the beginning point
because they are the source of all demand and thus money. As a result, when
it comes to increasing supply chain performance, the CRM macro process is the
place to start. It's also worth noting that CRM (and related) processes (as well
as CRM software) to maximize performance, it must be integrated with
internal activities. Too often, firms' customer-focused divisions operate
independently of their internal processes. The importance of CRM to a
functioning supply chain is underscored by the necessity for integration
between CRM and internal operations.
ISCM encompasses the processes that go into planning and executing a client
order. Because the ISCM macro process attempts to meet demand generated
by CRM processes, tight integration between the ISCM and CRM macro
processes is required. Interaction with CRM is critical for estimating demand
since CRM systems touch the customer and have the most data and insight
into their behavior. Similarly, the ISCM procedures and the SRM macro process
should be tightly integrated. Suppliers, and thus the SRM processes, are all
dependent on supply planning, fulfilment, and field service. It's pointless for
your factory to have the capability to meet demand if the parts needed to
create your product are not available from your supplier. Order management,
which we mentioned in CRM, must be tightly integrated with fulfilment and
serve as a source of information for successful demand forecasting. Again,
effective supply chain management necessitates integration of macro
activities.
If SRM processes are well integrated with appropriate CRM and ISCM
processes, significant improvements in supply chain performance can be
achieved. When creating a product, for example, incorporating user feedback
is a natural way to improve the design. This would necessitate data from CRM
procedures. Supplier inputs are required to design and execute an optimal
strategy, therefore sourcing, negotiating, buying, and cooperating are all
closely related to ISCM. Even these areas, however, require integration with
CRM operations like order management.
Improving supply chain performance requires integrating the three macro-
operations.
ANS 3. Building Strategic Partnerships and Trust within a Supply Chain.

Mutual trust is the notion that each actor or party is concerned about the well-
being of the other and would not do actions without thinking about the
consequences for the other.
In a supply chain partnership, cooperation and trust result in the following
advantages:
1. They are more prone to consider the objectives of the opposing party while
making decisions.
2. Information sharing is normal between people who have mutual confidence.
3. Operational improvements are less difficult to put in place.
4. When both parties are working toward a shared goal, pricing strategies are
easy to devise.
5. Supply chain productivity rises because numerous steps can be skipped
without inspection.
The following are the important stages to take when designing a partnership:
1. Evaluating the partnership's mutual advantage.
2. Determining each party's role in the partnership's operations.
3. Developing strong contracts.
4. Creating an effective process for resolving conflicts.
Managing Supply Chain Relationships for Trust and Cooperation.
It is critical that the initial contract between the parties be established with
enough flexibility to allow for changes depending on the experience gained
from the initial transactions and subsequent transactions. The relationship will
develop into a mutually beneficial one over time.
As an example, Marks & Spencer, a supplier of kitchen products, was
mentioned. After the initial contract, it was determined that there had been a
cost error, and the supplier was losing money. M&S executives assisted the
supplier in redesigning the product and process. They also increased the
amount paid to the supplier while keeping the price to the client the same by
cutting their margin. M&S's intervention strengthened the connection, and the
supplier was pleased with the problem's resolution.
In relationships, it is the responsibility of the stronger side to act fairly.
ANS 4. The importance of retaining existing clients and developing company is

critical in the commercial world. Due to the high costs of acquiring new
consumers, each existing customer may be critical.
The more ways a consumer has to do business with your firm, the better, and
one method to do so is to open new channels like direct sales, online sales,
franchising, and the use of agents, among others. However, the more channels
you have, the more important it is to manage your client interactions.
Customer relationship management (CRM) enables organisations to acquire
insight into their customers' behaviour and change their business operations in
order to provide the best possible service to those consumers. CRM, in
essence, aids a company in recognising the worth of its customers and
capitalising on better customer connections. You can be more attentive to your
clients' needs if you have a deeper understanding of their needs.
Implementing a customer relationship management (CRM) solution can take a
long time and cost a lot of money. However, there are numerous possible
advantages.
The building of improved relationships with your existing clients can be a
significant benefit, as it can lead to:
higher sales as a result of improved timing as a result of predicting
requirements based on previous trends
Understanding unique customer requirements might help you discover
demands more efficiently.
Cross-selling of other items by emphasising and recommending alternatives or
enhancements determining which consumers are profitable and which are not.
By focusing on: effective targeted marketing communications directed directly
at client needs, this can lead to improved marketing of your products or
services. In order to win more business in the future, a more personal
approach and the creation of new or improved products and services are
required.
In the end, this could lead to:
1. Improved client retention and happiness, ensuring that your positive
reputation in the marketplace grows.
2. Greater customer value and lower costs associated with maintaining and
serving them, enhancing overall efficiency and lowering total cost of sales.
3. Increased profits by concentrating on the most profitable customers and
dealing with the unprofitable in more cost-effective ways.
4. Once your company has mastered the skill of looking after its current
clients, you can focus your efforts on finding new customers and increasing
your market. The more information you have about your clients, the easier
it will be to find new customers and expand your customer base.

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CLASS TEST – 1

NAME – VIVEK BHARDWAJ

ANS 1. The various processes included in internal supply chain management

TMF (TRANSACTION MANAGEMENT FOUNDATION) - consists of core ERP

ANS 3. Building Strategic Partnerships and Trust within a Supply Chain.

ANS 4. The importance of retaining existing clients and developing company is

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