Business Processes in Logistics and
Supply Chain Management (Part I)
Customer Relationship Management
Process
 To provide structures for how to develop and
maintain relationships with customers
 To segment customers based on their value
over time
 To increase customer loyalty by providing
customized products and services
Issues Associated with Customer
Relationship Management
 Operational and analytical CRM
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Customers repositories
B2C and B2B client data marts
Campaign management
Strategic and operational reporting
Customer data analysis
 Business value of customer relationship
management
 Sales
 Marketing
 Services
Supplier Relationship Management
Process
 To provide structures for how to
develop and maintain relationships
with suppliers
 To develop close relationships with a
small set of key suppliers
 To develop traditional relationships
with the others
Issues Associated with Supplier
Relationship Management
 Supplier Relationship Management
Software
 SAP SRM
 Oracle SRM
 Business Value of Supplier Relationship
Management
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Increase productivity and cash flow
Improve operational efficiency and quality
Increase supplier visibility
Respond faster to change and opportunity
Customer Service Management
Process
 To administer the product and service
agreements (PSAs) developed by customer
teams
 To involve the development of triggers and
signals to identify situations that may
become problems before they affect the
customer
 To develop the standardized response
procedures to respond to recurring events
 To develop information systems to provide
visibility to the triggers and signals that
identify events requiring a response
Issues Associated with Customer
Service Management
 Customer Service Management Software
 customer record
 customer interaction
 business process
 Business Value of Customer Service
Management
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Improve Your Customer's Experience
Achieve a greater loyal customer base
Improve profitability
Accelerate organizational growth
Demand Management Process
 To balance the customers’
requirements with the capabilities of
the supply chain to match supply with
demand proactively and execute the
plan with minimal disruptions
 to provide functions of forecasting,
synchronizing supply and demand,
increasing flexibility, and reducing
variability
Issues Associated with Demand
Management Process
 Demand Management Software
 Demand signal repository
 Demand collaboration
 Demand planning
 Demand shaping
 Pricing and simulation
 Business Value of Demand Management
 Manage customer demand
 Achieve greater forecast accuracies and customer
service levels
Case Study : Boeing’s Global
Supply Chain System
Boeing 787 Dreamliner shows a new
manufacturing philosophy and approach
with 135 structural and systems partner
locations around the world.
The biggest challenge is to ensuring all
partners have access and visibility to the
latest demand information from Boeing and
Boeing has visibility to the supplier’s ability
to meet the delivery schedule
Boeing Strategy
 Adopt software-as-a-service delivery
model and state-of-arts system to
manage the complete order lifecycle
and returns process across the
multiple partner tiers, while also
tracking planning schedules,
consumption, and managing
replenishment.
Boeing Supply Chain
Implementation
 Adopt Exostar system and existing network
of connectivity into supply chain to go-live
with solution in less than 90 days with
following solutions:
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Multi-tier order management
Reporting and analytics
Community management and support
Multi-Tier Demand/supply synchronization
Partner Management Inventory
Security and Identity Management
How did technology help Boeing ?
 Early identification of potential demand/supply
imbalances and their impacts on other partners or
aspects of the supply chain
 Eliminate many of the manual activities associated
with communicating new delivery schedules and
order changes across multiple tiers
 Reporting and analysis for continued process
improvement over the lifecycle of the program
 Move to exception based management of the end
to end process across partners and partner tiers
 Eliminate latency in communicating demand
/supply changes across multiple partner tiers
The Outcome
 Improved on-time delivery to the end
customer while minimizing logistics costs
 Ensure continuity of supply and minimize
supply disruptions through the real-time
synchronization of demand with available
supply
 Improve cash flow for supply partners
participating in partner managed inventory
programs
Discuss the following questions:
 What problems do Boeing address? How
does global supply chain system help
solve these problems?
 What issues and challenges do global
supply chain strategy present? What can
be done to address these issues?
 What are the business as well as the
technology issues that should be
addressed when Boeing implemented
new global supply chain approach?