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Melissa Hinton

CINS 3050

Ch. 8 Review Questions

1. Describe supply chains and explain why "supply network" may be a more accurate term. A supply chain is a collection of companies and processes moving a product. They are suppliers of raw materials, suppliers of intermediate components. They also move products for final production and move products to the customers. The flow of materials from suppliers to customers can thus be more accurately described as a supply network because of the various interrelated parties involved in moving raw materials, to intermediate components, and, finally, to the end product within the production process.

2. What are two process innovations enabled by effective collaboration within supply networks?a. Just in time production (JTT)b. Vendor managed inventory (VTT)

3. Explain how effectively managing the supply chain can help an organization be a responsible social citizen.

a. Save costsb. Create a good image

4. How does SCP differ from SCE?a. SCP—Supply chain planning. The process of developing various resource plans to

support the efficient and effective production of goods and services.b. SCE—Supply chain execution. The execution of supply chain planning involving the

management of product flows, information flows, and financial flows.5. How does supply chain visibility help an organization react to external events? They are able to

track products as they move through the supply chain. Helps to keep an eye on low inventory levels, anticipate and react to things like weather, political issues, or natural disasters.

6. Contrast supply chain effectiveness and supply chain efficiency.a. Supply chain effectiveness—extent to which a company’s supply chain is focusing on

maximizing customer service regardless of procurement, production, and transportation costs. The design of the supply chain must consider natural trade-offs between a variety of factors and should reflect the organization’s competitive strategy to reap the greatest benefits.

b. Supply chain efficiency—is the extent to which a company’s supply chain is focusing on minimizing procurement, production, and transportation costs, sometimes by sacrificing excellent customer service.

7. What is XML, and how does it impact SCM?a. XML—Extensible markup language

i. Benefits supply chains, enables customized tag, doesn’t specify formattingii. Powerful information tagging system that can be tailored to share similar data

across applications over the Web. With these advanced data definition capabilities built into Web applications, organizations can then use the Web as

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the worldwide network for business-to-consumer electronic commerce and SCM.

8. What is RFID, and how does it impact SCM?a. RFID—Radio frequency identification

i. Provides unique identification. Vary in size from being a fraction of an inch up to inches across.

ii. Eliminates need for line of sight reading9. How does CRM differ from SCM?

a. CRM—customer relationship managementi. Powerful information tagging system that can be tailored to share similar data

across applications over the Web. With these advanced data definition capabilities built into Web applications, organizations can then use the Web as the worldwide network for business-to consumer electronic commerce and SCM.

b. SCM—supply chain managementi. Information systems focusing on improving upstream information flows with

two main objectives—to accelerate product development and to reduce costs associated with procuring raw materials, components, and services from suppliers.

10. What is a CRM system, and what are its primary components? a corporate-level strategy to create and maintain, through the introduction of reliable systems, processes, and procedures, lasting relationships with customers by concentrating on the downstream information flows.

a. Operational CRM—systems for automating the fundamental business processes—marketing, sales, and support—for interacting with the customer

b. Analytical CRM—systems for analyzing customer behavior and perceptions (e.g., quality, price, and overall satisfaction) in order to provide business intelligence

c. Collaborative CRM—systems for providing effective and efficient communication with the customer from the entire organization

11. Describe the enterprise-wide changes necessary for realizing a successful CRM strategy.a. Policy and Business Process Changes.

i. Organizational policies and procedures need to reflect a customer-focused culture.

b. Customer Service Changes. i. Key metrics for managing the business need to reflect customer-focused

measures for quality and satisfaction as well as process changes to enhance the customer experience.

c. Employee Training Changes. i. Employees from all areas—marketing, sales, and support—must have a

consistent focus that values customer service and satisfaction.d. Data Collection, Analysis, and Sharing Changes.

i. All aspects of the customer experience—prospecting, sales, support, and so on—must be tracked, analyzed, and shared to optimize the benefits of the CRM.

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12. Contrast operational and analytical CRM. Operational CRM are automated systems. They are used for marketing, sales and support. Analytical CRM is used for analyzing customer behavior and perceptions of a product that include quality, price, and overall satisfaction.

13. How does analytical CRM help in monitoring social conversations? Suppliers can find out what the consumers actually think about their products.