Unit 7.1: Unit 7 Intro: CRM and Supply Chain Management (SCM) | IT 233

Unit 7: Customer Relationship Management and Supply Chain Management

Modern business is not just about what happens within the walls of an organization; it is equally about how a company manages its relationships with its customers and its partners. Two key disciplines and their enabling information systems are at the heart of managing these external relationships: Customer Relationship Management (CRM) and Supply Chain Management (SCM).

Figure 1: CRM and SCM - Managing External Relationships

flowchart LR
    subgraph UPSTREAM["Upstream"]
        SUP["🏭 Suppliers"]
    end

    subgraph ORG["Organization"]
        SCM["📦 SCM\nSupply Chain"]
        CORE["⚙️ Core\nOperations"]
        CRM["👥 CRM\nCustomer Focus"]
    end

    subgraph DOWNSTREAM["Downstream"]
        CUST["🛒 Customers"]
    end

    SUP -->|"Materials & Services"| SCM
    SCM --> CORE
    CORE --> CRM
    CRM -->|"Products & Value"| CUST
    CUST -.->|"Orders & Feedback"| CRM

    style CRM fill:#2e7d32,color:#fff
    style SCM fill:#1565c0,color:#fff

Figure 2: CRM and SCM in the Business Value Chain

Customer Relationship Management (CRM) focuses on managing all of a company’s relationships and interactions with its customers and potential customers. The goal is simple: improve business relationships to grow the business.

Supply Chain Management (SCM) involves the management of the flow of goods and services, from the procurement of raw materials to the delivery of the final product to the consumer.

This unit will explore both of these critical areas. We will define CRM and SCM, examine the different types of systems used to manage them, and see how information technology provides the essential support for building strong customer relationships and creating efficient, resilient supply chains.