What might an integrated supply chain look like for a financial services company such as an insurance provider or a bank? What are the components of the process? What would the customer relationship management process look like for this same firm?
Topic 3 Discussion 2: Integrated Supply Chain
To stay competitive, the financial firm needs to link all its functions and components with the right accessible technology. Integrating supply chain management is the methodology that arises from risk management. Moreover, implementing integrated supply chain management is a very challenging task for the financial organization. It is defined as the supply chain which focuses on the possible failure effects that an organization might face. An integrated supply chain management is also useful in determining the risk probability that a financial firm might undergo and also concentrates upon the strategies of mitigation for handling the risk of probability (Carter Logistics, 2022). Irrespective of the size and scale of operation, supply chain management also provides a competitive edge over its competitors. With integrated supply chain management, organizations can be able to maximize their values and advantages that might not be achieved through initial strategic planning and the contract signature. Through supply chain management practices, the organization can be able to mitigate its risks with third parties, provides a clear vision of the supplier p[rocess, reduces fines and goodwill risk, enhancing data integrity.
The components of integrated supply chain management for the financial firm include material, capital, information, investment economics, and manpower. Furthermore, the process of supply chain management starts with the planning where SCM activities will be planned that need to be implemented in the financial firm. The next process is the valid supplier selection which ensures risk mitigation and process control. After that, the contract should be negotiated between the supplier and the financial organization. It should define the responsibility sets, audit rights, cost, disaster recovery plan, and more. The next step is monitoring whether the suppliers are working as per the contract regulations and guidelines or not. If any contract termination needs to occur, it may occur after the process of monitoring. Next is defining the roles and responsibilities to which the organization and the firm abide by.
The customer relationship process for the financial organization is the procedure of gathering all the required information about its customer like their interest, taste & preferences, last purchase, etc. In short, CRM helps in improving the relationship between the customer and the organization. Financial organizations adopt the CRM process for gaining long-term benefits and profits, increase customer satisfaction by providing them customized services, gaining a competitive advantage, and more (Chai, Ehrens & Kiwak, 2022. The financial organization CRM system also considers electronic or online customers, therefore they will only perform online transactions.
References
Carter Logistics (2022). The Benefits of Integrated Supply Chain Management. Retrieved on 25th August 2022, from: https://carter-logistics.com/benefits-integrated-supply-chain-management/
Chai, W., Ehrens, T. & Kiwak, K. (2022). CRM (Customer relationship management). Retrieved on 25th August 2022, from: https://www.techtarget.com/searchcustomerexperience/definition/CRM-customer-relationship-management
