Essay about Customer Relationship Management ( Crm )

751 Words Oct 21st, 2015 4 Pages
Companies work with a wide range of suppliers, and supply chains over time are growing increasingly complex. The growing pressure to provide value for consumers has led to tight margins, which are continually being squeezed tighter. In order for firms to maintain profitability and drive efficiencies, they are turning to supplier relationship management as part of an orderly and systematic approach to the procurement of goods and materials so that firms can drive costs out of the supply chain. A second driver of SRM methodology implementation—other than driving down costs—seems incongruous with the first driving force, but companies are seeking to improve collaboration and relationships with the various suppliers they work with. The focus on SRM can be thought of as parallel to customer relationship management (CRM). Firms have multiple interactions over time with customers as well as with suppliers which can include issues such as negotiating contracts, purchasing, management of logistics and delivery, and collaboration on product design. Successfully employing SRM methods requires recognition that these various interactions with suppliers are usefully thought of as comprising a relationship, one which can and should be managed in a coordinated fashion across functional and business unit touch-points (Hughes 2010). Again, similar to CRM initiatives, SRM requires that a firm is consistent with an approach that is designed to foster trust over time. An SRM can be…

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