Compare and Contrast SRM vs. CRM Essay Example | Topics and Well Written Essays - 2250 words

Compare and Contrast SRM vs. CRM - Essay Example Whereas, CRM is mainly to increase customer satisfaction with a better support and more targeted products and to reduce costs by linking marketing, sales, research & developments and customer support services. SRM is a comprehensive approach to managing an enterprises interactions with the organizations that supply the goods and services it uses. SRM aims to streamline and make more effective the processes between an enterprise and its suppliers and includes both business practices and software. SRM is part of the information flow component of supply chain management (SCM). SRM increases the efficiency of processes associated with acquiring goods and services, managing inventory, and processing materials. The use of SRM software can lead to lower production costs and a higher quality with lower priced product. Some definitions of SRM are given below: â€Å"The practices needed to establish the business rules, and the understanding needed for interacting with suppliers of products and services of varied criticality to the profitability of the enterprise† Gartner Group Customer relationship management is the broad category of concepts, tools, and processes that allows an organization to understand and serve everyone with whom it comes into contact. It is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer information. CRM aims for: SRM is about to manage relationship with suppliers more effectively at the same time cutting down the costs and increasing the viability of product and services received. Below are some functions/ activities are discussed. SRM is a new emerging concept, which can be seen opposite to CRM. Recent developments in information technology have required and enabled manufacturing companies to rethink and restructure their supply chain strategies. A simple supply chain system includes suppliers, a company, and customers. SRM involves