YJ Toy Shop Case Study
Explain, briefly, how YJ could benefit from the implemented SCM System
The supply chain management software can be applied in the YJ Toy shop to manage the flow of goods from the storage, in-process inventory, and the sales to the customers (Oracle, 2014). The aim in this case would be to ease the functionalities of the online sales and create a proper record of the goods in stock concerning the orders. YJ will first benefit from the software through reduced costs drawn from effectively implementing an inventory system that eliminates wastage of storage space and other resources and generate proper relationships with vendors and distributors. Secondly, it will increase the output of YJs business by creating a proper communication channel and coordination with vendors, suppliers, and customers. Once a bi-directional communication channel is created, it will streamline incoming and distribution processes and give accurate output results. Thirdly, the time delay experienced in the tasks will be minimized and this creates confidence and proper relationships with vendors and customers of YJ. Allowing the presence of proper tracking processes of the activities of suppliers and distribution at all times will increase the collaboration between these two teams (Oracle, 2014). In case of any delay, it will be rectified beforehand and averted unlike with traditional inventory management.
Explain, briefly, how YJ could benefit from the implemented CRM System
In the ideal case, the Customer Relationship Management system aims at improving current and prospective customer relations. In the case of YJ, there is a need for them to properly track their current customers, find lost customers, and get prospective customers to maintain a proper projection of the business. The system will, therefore, improve their personal touch with customers by personalizing the relationship with clients through a properly created customer profile and customization to their needs (Bhat & Darzi, 2016). A follow up with customers on their products to ensure that if any problem encountered is rectified will better the relationship. The software will further aid YJ to identify prospective customers as they visit the online YJ page, get their information, and work out a way to converting them to clients. The CRM further reduces the cost of marketing campaigns by focusing on the perspective group of buyers; especially those not yet converted but fit the category that would want to buy toys. The system also creates a responsive communication channel. Customers can easily lodge their complaints, inquiries from new customers are met and customers are always informed in case of promotions, price changes, and new products within the market. Finally, YJ will get to make the proper use of customer loyalty. Loyal customers become a good source for recommendations and act as referrals. Proper communication with them will create this form of loyalty.
Explain, briefly, how YJ could benefit from the implemented ERP System
At YJ, The Enterprise resource planning system will be used in the coordination and communication between all the departments of the organization: sales, accounting, HR, Finance, and customer service. The efficiency of internal company processes will be the greatest advantage of YJ accrues from the system. It will eliminate manual entering of data, ease the visibility of all departments under one system, and thus one can monitor and control all processes precisely. The result of proper monitoring and control is an enhancement in productivity; redundancy is eliminated and people have time to work on important projects (Eid & Abbas, 2017). The ERP system also creates proper collaboration between departments because of good communication and a centralized system. The ERP also aids in creating a unified reporting system that provides consistent analytics used in forecasting and planning. YJ will, therefore, generate reports and use them to measure their effectiveness in every department and make necessary adjustments where needed. Once YJ understands their company systems, an ERP system will help them in case they want to grow or expand their resources.
Bhat, S. A., & Darzi, M. A. (2016). Customer relationship management. International Journal of Bank Marketing.
Eid, M. I. M., & Abbas, H. I. (2017). User adaptation and ERP benefits: moderation analysis of user experience with ERP. Kybernetes.
Oracle. (2014)What Is a Supply Chain Management System?. Oracle.Com. https://www.oracle.com/applications/supply-chain-management/what-is-supply-chain-management-system.html