The purpose of the customer relationship process, which supports customer relationship
management (CRM) programs, is to identify, attract, and build relationships with customers and
to facilitate the transmission and tracking of orders.
a. Electronic commerce (e-commerce)
b. Business-to-Consumer (B2C) systems
• Offers new distribution channels
• Examples: Amazon.com, E*TRADE, Auto-by-tel
c. Business-to-Business (B2B) systems
• Makes up more than 70 percent of the regular economy
• Example: Fruit of the Loom, Inc.
2. Order placement
a. Process involves the activities required to execute a sale, register the specifics of the
order request, confirm the acceptance of the order, and track the progress of the order
b. Internet provides advantage
• Cost reduction
• Revenue flow increase
• Global access
• Pricing flexibility
3. Customer service
a. The customer service process helps customers with answers to questions regarding the
service or product, resolves problems, and, in general, provides information to assist
7. Supply Chain Risk Management
• Supply chain risk management focuses on managing the risks posed by any factor or event
that can materially disrupt a supply chain.
• Operational, financial, and security risks and reveal important performance measures for
tracking supply chain operations.
1. Operational risks are threats to the effective flow of materials, services, and products in a
supply chain. The following options reduce the risk for operational disruptions
a. Strategic alignment
b. Upstream/downstream supply chain integration
d. Flexibility and redundancy
e. Short replenishment lead times