White Paper

Supply Chain and Demand Chain Integration:The Pathway to Profit and Competitive Advantage

Source: SAP Americas

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Supply Chain and Demand Chain Integration: The Pathway to Profit and Competitive Advantage

Over the last decade, a powerful mandate for sustained business productivity has emerged: to design, alter and, combine products and services to profitably and efficiently meet the needs of customers. This is no simple task. Only a handful of leading firms have undertaken the challenge of integrating their supply chain management (SCM) and customer relationship management (CRM) processes and systems. A big reason for this is the practicalities of everyday business. Speak with enough industry executives, suppliers, customers, and business journalists about connecting supply chains and meeting customer demand and a generalization emerges: SCM seeks to optimize supply, whereas CRM seeks to optimize demand; SCM is cost focused and deals with production and execution; CRM is revenue focused and involves identifying and responding to customer needs.

It is relatively common to fine discrete functional excellence in supply chain management side by side with customer relationship management. Although they are part of the same whole – a business seeking to create products and services for end customers – SCM and CRM frequently operate as separate, self-optimizing – even adversarial – entities. In practice, few companies truly optimize or integrate the supply chain with its demand chain counterpart.

Examining why and how companies can take the necessary steps toward greater coordination between the supply and demand chains is our focus in this white paper. It begins with the strategic argument for harnessing technology to integrate these formerly disparate disciplines and suggests the pathway for achieving this goal. It then examines the need for internal SCM-CRM coordination followed by external coordination of these chains as networks built on valuable relationships with suppliers, partners, and customers. It concludes by examining the critical role of technology in this process and the tangible benefits waiting for those organizations capable of leading the way.

Click Here To Download:
Supply Chain and Demand Chain Integration: The Pathway to Profit and Competitive Advantage