ISCOM424 - Best Practices
ISCOM424 - Best Practices
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Date Created: 11/09/15
Running head: BEST PRACTICES FOR CUSTOMER RELATIONSHIP 1 MANAGEMENT Best Practices for Customer Relationship Management Angie Killion, Olufolabi Fayinto, Rick Clark, and William Stephenson ISCOM/424 October 14, 2013 Joseph Bright BEST PRACTICES FOR CUSTOMER RELATIONSHIP MANAGEMENT 2 Best Practices for Customer Relationship Management Business leaders who understand how supply chain management directly affects customer satisfaction look at key processes within the supply chain for improvement because these processes are key to improving the organization’s ability to meet customer expectations. This study examines how leaders at Riordan Manufacturing assess supply chain management processes that directly affect customer satisfaction, such as inventory management, procurement, and shipping. Supply chain managers review these processes and recommend improvements for customer relationship management and identify best practices. Inventory Management Process Inventory management is a science primarily specifying the shape and percentage of stocked goods. It however affects the customer directly due to the fact that it is required at different locations within the facility owned by Riordan or within many locations of a supply chain network to precede the regular and planned course of production and stock of materials. The assessment of customer satisfaction improvement to meet customer expectation as regards inventory management is seen from the standpoint of the scope of inventory management as regards tin time lines between replenishment, lead time, carrying cost if inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available space for inventory, quality management, replenishment of returns and defective goods, and demand forecasting. Balancing these competing requirements, leads to optimal inventory levels which is an ongoing process as the business needs shifts and reacts to the wider environment. BEST PRACTICES FOR CUSTOMER RELATIONSHIP MANAGEMENT 3 In providing support for recommended Riordan’s process improvement and best practices for customer’s relationship management, is however proven from the views of inventory management requiring a retailer seeking to acquire and maintain a proper merchandise assortment with ordering, shipping, handling, and related cost being kept in check. It is however important to note that these also involve processes that identifies inventory requirement. These standards require replenishment techniques, reports, actual and projected inventory status, and handle all functions related to the tracking and management of materials. This would include the monitoring of materials moved into and out of the stockroom locations and the reconciling the inventory balances. Procurement Process Procurement is early on in the supply chain. It is where the materials needed are determined, then secured and obtained for the production and manufacturing of a product. This process is not as simple as it may seem. Because vendors could be located globally, there are so many options to choose from. However, it is important to make sure the best lowcost, high quality materials are chosen. Riordan has four facilities that perform different functions; therefore the procurement process has its challenges. However, all four facilities have the same goal, customer satisfaction. Providing competitive pricing and quality products for customers is part of Riordan’s mission. Reviewing vendor across the global for best lowcost, highquality material will directly impact customer satisfaction when the final product is completed. BEST PRACTICES FOR CUSTOMER RELATIONSHIP MANAGEMENT 4 It is clear that Riordan has met the needs of its customers in the past because of the known customer loyalty. However, in the Hangzhou, China facility, they purchase all of the material locally which leads to the idea that they do not take the time to explore other options that could bring a cost savings to the company and ultimately to the customer. Although the China facility operates as a decentralized unit, this is an area of improvement that corporate should look at in the future. It could be that vendors supplying other facilities could offer a better price in volume for supplying all of the Riordan facilities. When trying to secure lowcost, high quality materials for all facilities, the company should look at best practices being utilized within the industry in the event there is a better process available. A recommended best practice in regards to procurement is to establish alliances with key suppliers, also known as supplier relationship management (Engle, 2011). Communication between buyer and seller is very important. This communication helps set a stable, healthy relationship that will set the standard for problem resolution and continuous improvement goals. Shipping Process While having the raw materials on hand to produce products for customers is important and keeping the proper inventory on hand to be able to put orders together is crucial, the ability to package and ship orders in a timely manner is a must. In studying Riordan’s Supply Chain, it appears that there are two facilities that do the majority of product shipping. The Albany, GA plant and the China facility (University of Phoenix, 2013). These two facilities have completely different shipping processes even though BEST PRACTICES FOR CUSTOMER RELATIONSHIP MANAGEMENT 5 they both use dedicated transportation. The Albany plant uses a dedicated trucking company for all of its domestic shipping and the China facility uses a wellknown international logistics company (University of Phoenix, 2013). The Albany plant sees large differences in shipping costs depending on the size of the order being shipped whereas the China facility has a much more normalized cost for international orders. The Albany plant also has trouble meeting deadlines in the northeast portion of the country during the winter months. First of all, “Customers who have been promised something that isn’t delivered as promised are far more frustrated and disappointed than if they are notified at the outset they won’t have it sooner than later. In other words, under promise and over deliver is the best policy” (Lyon, 2013, p. 1). Having said that, the following changes are suggested. The successes of the shipping practices of the China facility are due mostly to their choice of contracted logistics company. This logistics company is well known for its domestic shipping ability as well therefore it is suggested that the Albany facility look into the different shipping and transportation solutions available to them. Conclusion This study examined how leaders at Riordan Manufacturing assess supply chain management processes that directly affect customer satisfaction like inventory management, procurement, and shipping. The supply chain managers reviewed these processes and recommend improvements for customer relationship management and identified several best practices. These leaders understand how supply chain management directly affects customer BEST PRACTICES FOR CUSTOMER RELATIONSHIP MANAGEMENT 6 satisfaction and use the supply chain improvements to improve the organization’s ability to meet customer expectations. BEST PRACTICES FOR CUSTOMER RELATIONSHIP MANAGEMENT 7 References Engle, B. (2011). 10 Best Practices You Should Be Doing Now. Retrieved from http://www.supplychainquarterly.com/topics/Procurement/scq201101be stpractices Lyon, B. (2013). How to Ensure Strong Customer Service and Customer Satisfaction. Retrieved from http://managementhelp.org/customers/service.htm University of Phoenix. (2013). Riordan Manufacturing. Supply Chain - Overview. Retrieved from ISCOM/424 - End to End Supply Chain Management course website
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