Question 1
Having an SCM could be very beneficial for YJ toyshop since it comes with very many benefits. During growth, the company is expected to have better communication with suppliers, the distributors, and everyone else in the supply chain. The company, therefore, requires to have an automated system that saves on time for communication and a better flow of information. The system, therefore, gives the company a better collaborative advantage. There will be easier access to data, and the company can manage to make better and more informed decisions.
The company will also have an improved quality control system. By implementing this system, there are great chances that the company will be in touch with their supplier and supplier’s supplier. This way, they will manage to control the quality of the materials brought in by the direct supplier. Having this system will also benefit YJ in that it will increase the efficiency of the company. This system will help the company have access to real-time data on how much raw material is available. This way, the company will have control over the inventory control, and the system can even be programmed to inquire on behalf of the firm if the company runs short of inventory. There will be no cases o out of stock or late shipments to the final customers.
Through this system, the company will manage to keep up with demand. In case the demand goes up by say 5% during a certain week, the system can show these and make a 7% change on the demand of the product for the next week hence staying ahead of the demand curve and making sure it does not overproduce to strain the company. The shop will also have a better shipping optimizations method that will most likely reduce the overhead costs that the company incurs throughout the supply chain process. The system will, therefore, be quite efficient for the firm.
Question 2
The CRM system is meant to cover the customers, the communication and transactions between the firm and the customers. The most significant reason for having this system is that it helps the company better know their customers. It acts like a cheat-sheet that continually collects the customers’ data, knowing what they actually like and their preferences and even keeping data about individual customers to keep up with their taste and interests. This also helps during marketing since the company knows exactly what their clients want.
The CRM system allows for better segmentation, thereby making it easy to focus on specific products. All companies, just like the YJ shop, have their vision and mission, and overall objectives. Therefore, they require to have huge amounts of data, break the data down into categories, and analyze the data to make specific customer marketing campaigns. They manage to know who they are addressing, and they can therefore tailor their offer, their sales pitch, and even work on their tactics.
Having this system also offers the advantage of better customer retention. The system keeps a close watch on their customers, alerting them to any promotions or new commodities in the market. This keeps the customers happy, and it makes it easy to offer some of the customer retention benefits through thorough customer follow ups and reminders. This means that the system also offers a speedier mode of communication with the customers. It has a helpful support system for automated and speedy customer communication. The system is advantageous in that it can manage to handle multiple clients simultaneously. The system is also very beneficial since it creates better anticipation of needs through recording customer history, and it also keeps the client’s data private from access by unauthorized personnel.