How can you use CRM to create a customer-centric supply chain culture in your organization?

Strong supplier relatinships prove their value when crisis or unconventional situation happen. Have you ever experienced a product recall from the market? I did. I have learned that relationship based on trust and open information sharing can mean more than hard written legal contracts. We were able to collect exact batches from the market only because I had a tracking of inventory throughout our connected supply chain. From tier 2 supplier to my customer customers.

You may better align your supply chain processes to match your customers' expectations by gathering and analyzing customer data using CRM systems. This will help you better understand their wants and preferences. Better demand forecasting, personalized interactions, and customer service are all possible thanks to this data. A customer-centric and improvement-driven culture can be nurtured through the incorporation of CRM data into supply chain processes.

Supplier relationships are critical for many reasons, and their significance goes beyond the procurement process. Here are some fundamental reasons why supplier relationships are important: a)Flexibility and Responsiveness b)Long-Term Partnerships c)Reliability and Consistency d)Quality Assurance e)Cost Efficiency f)Innovation and Collaboration g)Risk Management supplier relationships matter because they contribute to operational excellence, cost efficiency, quality assurance, innovation, risk management, flexibility, long-term partnerships, and overall business success. Nurturing and managing these relationships effectively can lead to sustainable competitive advantage and business growth.

Using CRM to create a customer-centric supply chain culture involves leveraging CRM tools to gather and analyze customer data, enabling a deeper understanding of customer needs and preferences. This data-driven insight allows the supply chain to be more responsive and aligned with customer demands, fostering better communication and collaboration across departments. By integrating CRM with supply chain management, organizations can anticipate customer needs, improve service levels, and enhance overall customer satisfaction, leading to a more agile and customer-focused supply chain culture.

The key feature of CRM in supply chain environment is ability to link customer cases with orders, products, and in certain product categories (like cosmetics, pharmaceuticals) with exact batches you have ordered from your supplier. When your CRM can link with OMS and WMS in your network you can pull information which can be used to have data driven discussion with suppiers.

The principal objective of consumer relationship management (CRM) systems is to oversee and enhance consumer interactions and relationships. Nonetheless, CRM systems can be modified and employed to efficiently oversee supplier relationships. By harnessing the capabilities of CRM systems, supplier relationship management can be improved in terms of collaboration, performance monitoring, transparency, efficiency, and strategic decision-making. By incorporating CRM into procurement and supplier management processes, an all-encompassing strategy for overseeing supplier relationships and fostering organisational prosperity can be established.

Customer Relationship Management (CRM) systems, traditionally used for managing customer interactions, can also play a key role in managing supplier relationships. CRM platforms provide a centralized place to track and analyze interactions with suppliers, including order history, performance metrics, and communication records. By leveraging CRM tools, organizations can gain valuable insights into supplier behavior, assess performance over time, and identify opportunities to strengthen these partnerships. CRM helps ensure that communication with suppliers is transparent, efficient, and aligned with business goals.

For me, CRM tools have been game-changers. They’ve allowed me to see the full picture of our supplier interactions—something that’s essential when you’re aiming for seamless communication and strategic alignment. CRM isn’t just about managing data; it’s about enhancing our relationships and making sure we’re always on the same page with our suppliers. It’s a tool that I rely on to turn our supplier engagements into strategic advantages.

In practice. I’ve used various CRM’s for new customer roll outs to notify sales team members of a recent conversion win with distribution center in their geography and put out a checklist based on Corp request be it to update a routing guide. To just stopping by to introduce themselves and drop of local operations and BD contact info, as well as designated call center contact for international resolution for shipments, stuck in customs.

The real way to create customer centric culture is to give access to CRM and your customer cases (at least at aggregater level as reports) to everybody in the supply chain. CRM is not just a system to be used by sales. It should feed dicussions in your own procurement, operations, and also at your strategic suppliers teams. Actually the worst CRM implementation I have seen was in a certain construction company. Even though there was 'single' system vendor different functions in the company had separate implementations and collected cases from customers, suppliers, and internally in unrelated databases. This is the opposite of the way CRM should be used to create customer centric supply chain culture!

Using CRM in a supply chain setting encourages a culture that focuses on customer satisfaction by ensuring seamless coordination between suppliers and the business. CRM can help align supply chain strategies with customer needs by tracking supplier performance in real-time and integrating customer feedback into supplier evaluations. This fosters a more agile supply chain that can respond quickly to changing customer demands. CRM can also facilitate collaborative planning with suppliers, ensuring they understand and contribute to the company's customer-centric goals, ultimately improving delivery speed, quality, and overall customer satisfaction.

Using the information gathered from the CRM provides basic information to the supply chain to take actions that allow adjusting some procedures to the customer’s needs. An example of this are the requirements that the customer may have regarding packaging conditions, delivery schedules at their facilities, product labeling specifications, just to name a few. Leveraging this information from the supply chain to create a positive experience for our customer ultimately becomes a competitive advantage

One of my key goals has always been to keep the customer at the center of everything we do. By using CRM to integrate customer insights directly into our supply chain processes, I’ve found that we’re not just meeting expectations—we’re exceeding them. This approach has helped me ensure that our supply chain is not just efficient but also deeply attuned to what our customers truly want. It’s a perspective I’m passionate about, and I believe it’s key to our long-term success.

Here’s a short list of key actions for using CRM to enhance supplier relationships: 1. Define & Communicate Goals ?? Set clear expectations and share them with suppliers. 2. Review & Update Supplier Data ?? Regularly refresh supplier information for accuracy. 3. Segment & Categorize Suppliers ?? Use models like ABC or Kraljic matrix to classify suppliers by importance, risk, and performance. 4. Build Trust & Transparency ?? Share relevant info and feedback to foster strong relationships. 5. Seek Continuous Improvement ?? Conduct audits, benchmarking, and improvement programs to optimize collaboration. These steps ensure a strategic, data-driven approach to supplier management!

There are 2 factors that really drive supplier relationship and customer centric culture: 1?? periodic performance reviews (monthly, quarterly, depends on pace of business) 2?? shared KPIs and automated reports from CRM that available for both parties They need to be implemented together. Otherwise you either have meetings spend on discussions about data instead of insights. Or you have mass of information which is not used as nobody makes decisions about it.

First be fully aware what you're expecting from the engagement. Define and aligne key targets and how you measure success at the end with regular (e.g. quarterly) reviews, ops and strategic horizon. Clarify if and how things need to be escalated with dedicated contacts on both sides. This avoids unnecessary noise when things are already hectic enough. Course correct immediately if needed and run (ideally) once a year a survey on both sides to make sure we are still sharing the same understanding and believes of what's going well and where things are off.

To maximize the effectiveness of CRM in managing supplier relationships, it’s important to establish clear goals and consistent communication channels with suppliers. Regularly reviewing supplier performance using data from the CRM helps in identifying areas for improvement and collaboration. Another best practice is to integrate CRM data with other supply chain systems, such as ERP and procurement platforms, to create a holistic view of supplier interactions. Training supply chain teams on CRM usage is also critical to ensure they can efficiently manage supplier information and enhance supplier engagement.

To maximize the benefits of CRM for supplier relationship management, consider these best practices: Customize CRM: Tailor your CRM system to track supplier-specific data and metrics. Training: Ensure both your team and suppliers are trained on how to use the CRM system effectively. Regular Reviews: Conduct regular performance reviews with suppliers using CRM data to identify and address issues proactively. Integration: Integrate your CRM with other systems (e.g., ERP, procurement) for a seamless flow of information. Feedback Loop: Establish a feedback loop where suppliers can provide input on how to improve the CRM process.

Antes de pensar em ferramentas tecnológicas tais como o CRM, cabe a busca de práticas simples que perenizem e sustentem a entrega de valor. é uma vis?o de longo prazo, que envolve parceria e consequentemente mais respeito. Demonstrar esse respeito aos fornecedores também é, na mesma medida, fortalecer o relacionamento. Há práticas que podem acelerar esse processo. Por exemplo, o Gerenciamento Diário (GD) e o apoio genuíno aos fornecedores na aplica??o do jishuken, termo que significa “autoaprendizado” em japonês, que na gest?o lean quer dizer propiciar às pessoas que aprendam lean ao implementá-lo na prática dos processos envolvidos.

Using CRM to build a customer-centric supply chain involves aligning operations with customer needs by leveraging data insights. Here’s how: 1. Customer Insights ?? CRM provides data on preferences and buying behavior, helping you forecast demand and tailor supply chain processes to individual customers 2. Better Demand Forecasting ?? Use real-time customer data to manage inventory efficiently and reduce stockouts or overstock situations 3. Cross-Department Collaboration ?? CRM ensures sales, marketing, and supply chain work together, improving communication and aligning with customer demands 4. Customer Feedback Loop ?? Feedback from CRM can highlight areas for improvement, optimizing SC to address customer concerns

Several CRM tools are designed or adapted to manage supplier relationships in a supply chain context. Platforms such as Salesforce, SAP Customer Experience, and Microsoft Dynamics offer functionalities for tracking supplier performance, managing contracts, and facilitating collaboration. Specialized supply chain CRM solutions like SynerTrade and GEP SMART are tailored to procurement and supply chain needs, providing advanced features like supplier risk management, performance analytics, and strategic sourcing. These tools help businesses streamline their supplier management processes, ensuring that the supply chain remains customer-centric.

Solutions mentioned here are general purpose CRMs. They lack specific supplier relations managemetn features. For SRM better chose one of those: ??SynerTrade: comprehensive tool that focuses on performance evaluation, and risk management. It offers features like supplier onboarding, KPIs tracking, and compliance management. ??Jaggaer: specialized platform that enables for suppliers self-registration, qualification, KPI monitoring, and risk management. It helps streamlining the entire supplier lifecycle. ??SAP Ariba SRM: the largest/most expensive but offers virtually everything from the above and is part of overall SAP environment which for some companies is a need.

Several CRM tools can be adapted for supplier relationship management: Salesforce: Widely customizable, Salesforce can be used to track supplier interactions, performance, and issues. Zoho CRM: Offers modules for vendor management and can be tailored to include supplier-specific data. Microsoft Dynamics 365: Integrates well with other Microsoft products and offers robust tools for supplier and customer relationship management. HubSpot CRM: Known for its user-friendly interface, HubSpot can be adapted for managing supplier relationships. SAP CRM: Ideal for larger enterprises, SAP offers comprehensive features for managing complex supplier networks.