1. Interaction of SRM and CRM An Overview of Best Practices Presented 9/28/15 by Joni Holeman, CFPIM,CIRM,CSCP,CDDP VP Education for APICS DC Metro Chapter

2. Interaction of SRM and CRM Agenda Introductions Goals and Objectives of the session Content slides, with visuals and minimum amount of text Q&A Conclusion 28 Sept 2015 2 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

3. Session Goals & Objectives By the end of this presentation, you will be able to: Define Supplier and Customer Relationship Management Recognize the benefits of each app Describe how the programs complement one another Determine how to quantify SRM & CRM cost savings 28 Sept 2015 3 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

4. SRM Definition 28 Sept 2015 4 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015 From APICS Dictionary, 14 th Edition: “A comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services the enterprise uses. The goal of SRM is to streamline and make more effective the processes between an enterprise and its suppliers. SRM is often associated with automating procure-to-pay business processes, evaluating supplier performance, and exchanging information with suppliers. An e-procurement system often comes under the umbrella of an SRM family of applications.”

5. 28 Sept 2015 5 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015 SRM Services SRM Procurement SRM Analytics Internal Interfaces External Supplier Interfaces SRM Capabilities

6. SRM Benefits Online auctions drive down commodity ordering costs Automated supplier scorecards save time/reduce risk Effective spend analysis enables strategic sourcing Collaborative design, planning & process improvement Web-based EDI for quicker communication & data sharing 28 Sept 2015 6 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

7. Now we switch to CRM! 28 Sept 2015 7 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

8. CRM Definition 28 Sept 2015 8 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015 From APICS Dictionary, 14 th Edition: “A marketing philosophy based on putting the customer first. The collection and analysis of information designed for sales and marketing decision support (as contrasted to ERP information) to understand and support existing and potential customer needs. It includes account management, catalog and order entry, payment processing, credits and adjustments and other functions.”

9. 28 Sept 2015 9 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015 Sales Force Automation Account Management Business Intelligence Marketing Automation CRM Capabilities

10. CRM Benefits Lower advertising expenses via targeted social media messages Bid and lead tracking for more accurate forecasts Data mining reveals ordering patterns to reduce inventory Proactive marketing outreach for vulnerable or win-back customers Loyalty program management 28 Sept 2015 10 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

11. Now let’s Merge SRM & CRM! 28 Sept 2015 11 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

12. Leveraging SRM and CRM Interactions Early NPI engagement for major clients & suppliers Sharing Point of Sale demand mitigates Bullwhip effect Example: Zara’s “Fast Fashion” 3-week time to market Voice of Customer present during Value Stream Mapping processes What SRM-CRM interaction opportunities exist in your enterprise? 28 Sept 2015 12 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

13. Exercise 28 Sept 2015 13 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015 Teams of 5-7 10 minutes Share your enterprise’s SRM-CRM opportunities Debrief by sharing your team’s coolest idea

14. How Can we Quantify SRM & CRM Savings? Tangible Comparisons Online reverse auction cost of commodities to former costs Compare manual time spent by buyers to process commodity PO’s to online auction cost How many continuous improvement ideas were initiated by either a supplier or customer within the past quarter? TV, radio or print advertising expenses to cost of email & social media targeted messages Inventory reductions due to timing product runs per customer order patterns Intangible Comparisons How many supplier rejects were avoided by paying attention to SRM scorecard trends? Which SOPs were changed YTD as a result of insights gained by Business Analytics reports? Can any market share gains be directly attributed to a CRM campaign or initiative? Qualitative nature of Net Promoter Scores or Level of Trust survey results Any quality of worklife enhancements resulting from SRM or CRM implementations?

15. Final Thoughts or Questions? 28 Sept 2015 15 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

16. Were Your Objectives Met? How many of us can now give examples to our colleagues at work about… Define Supplier and Customer Relationship Management Recognize the benefits of each app Describe how the programs complement one another Determine how to quantify SRM & CRM cost savings Thank you for completing your Session Evaluation before exiting! 28 Sept 2015 16 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015

17. Conclusion 28 Sept 2015 17 UNIVERSTIY DAY NDTA TRANSCOM FALL MEETING 2015 The basic purpose of any SRM or CRM application is to gather data about buying patterns, quality, delivery performance, ideas for process improvement or customer feedback. The more you know about your customer’s buying decision process, or your supplier’s operating processes, the more often opportunities for win-win collaboration will appear. Each application can provide rapid payback on its own, but for those enterprises with hundreds of suppliers and customers to track, integrating both SRM and CRM promises the highest return on investment.

18. Thank you very much! Interaction of SRM and CRM An Overview of Best Practices Presented 9/28/15 by Joni Holeman, CFPIM,CIRM,CSCP,CDDP VP Education for APICS DC Metro Chapter 703 430-4075 education@apicsdcmetro.orgeducation@apicsdcmetro.org http://www.apicsdcmetro.org