Product category:
Supply chain planning and execution software
News Release from: SSI | Subject: CRM
Edited by the Manufacturingtalk Editorial
Team on 26 June 2001
Making CRM work for the mid-market
Supply chain solutions vendor SSI says that big ticket CRM systems are inappropriate for the needs of most companies in the manufacturing sector.
Supply chain solutions vendor SSI says that big ticket CRM systems are inappropriate for the needs of most companies in the manufacturing sector "The standard definition of CRM is 'identifying, attracting, developing and retaining customers to generate sustainable and profitable growth," says SSI director Neville Merritt
This article was originally published on Manufacturingtalk on 18 Dec 2002 at 8.00am (UK)
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Neville Merritt of supply chain solutions developer SSI reckons that the central problem with most e-business investment has been a lack of clarity as to how it is going to pay back
"For most manufacturers who have business customers rather than individual consumers, it's the "developing and retaining" aspect that is most important, being able to create an intimate relationship with them, and then supporting them efficiently." CRM systems are the fastest-growing area of the enterprise IT market, but, says Merritt, this growth has primarily come about in large companies, especially in the service sector.
"Banks, insurers, retailers and the like have seized upon CRM, because it enables them to duplicate, on a vast scale, the kind of personalised service that smaller companies give their customers," he argues.
"Smaller companies, especially in manufacturing, don't have exactly the same needs, because their target market is generally smaller, and they usually already have a personal relationship with their customers and key prospects." In manufacturing, Merritt reckons, the challenge is more about improving revenue and customer retention through better service while simultaneously reducing cost.
Further reading
Traceability function changes Toray to ERP
Japanese-owned weaving and dyeing firm Toray Textiles Europe has become the latest customer to go live with its implementation of the TROPOS fast-response ERP suite from SSI.
Dried fruits processors go for ERP suite
Pocklington, Yorkshire-based dried fruits processor Sundora Foods and sister company Kernels Snack Products have purchased TROPOS ERP for sales forecating and traceability among other features.
Merritt cites research from Insight Technology Group showing less that a third of CRM initiatives have a significant effect on sales performance, and suggests that smaller firms need to think very carefully about which elements of the solution they implement.
"Companies should focus on the experience of being a customer," he says.
"They should realise that not all customers are equal, and learn to identify those customers from which they make the most profit.
They need to be able to segment customers, and tailor their offering to the needs of each segment, personalising communications such as direct mail and web portals to address the needs of particular customers.
They need to be able to get detailed customer information - from one centralised database, so there is no danger of conflicting messages - in front of all members of staff who might have contact with the customer.
SSI's approach to CRM is to provide a basket of functionality that can be implemented stage by stage to address the requirements of B2B customer relationship management - this is fundamentally different to the large CRM solutions on the market that claim to address every aspect of customer management, much of which is irrelevant to manufacturing organisations.".
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