Examining the mutual influence of supply chain management factors and customer relationship management

Industrial Management Department

Winter 1390

Abstract:

The current research seeks to find out the mutual influence of supply chain management and customer relationship management in Sfrain Steel Company. In order to answer the research questions and also realize the research goals, after reviewing the research literature and finding different dimensions of supply chain management variables and customer relationship management, the research plan and research method were determined, and after operational definitions and creating a questionnaire to measure the dimensions of the mentioned variables, 260 employees of different departments of Efrain Steel Company were selected and a questionnaire was presented to them. Using structural equation modeling (Lisrel), various structural models were implemented until the best structural model was selected from among the implemented models. After the implementation of the model, the final model of the research, which had better fit indices than other models, was selected. The obtained results show that all the described variables and the relationships between them are direct, that by strengthening and optimizing each of them, the other variable is mutually improved. For example, by increasing the amount of trust in supply chain management, retention and customer care will improve, and also, reciprocally, improvement in customer care will lead to an increase in trust in supply chain management. Therefore, the different aspects of customer relationship management and supply chain management have a synergistic effect on each other and reinforce each other.

Key words: supply chain management, customer relationship management, Esfrain steel, structural equation modeling

Chapter 1

Research overview

1-1- Introduction

Supply chain management is one of the basic elements in every supply chain. and has a very vital role in the survival and continuation of the successful operation of the supply chain in the global competitive market. In line with the successful performance of supply chain management[1], many variables play a role, but the element that plays the most important role in today's business is identifying the needs and demands of customers by the customer relationship management system[2] 

Management efforts to achieve the goals of the business unit are based on the dual tasks of planning and control. The task of planning is basically a decision-making process that deals with issues such as determining the expected profit, providing and accessing raw materials, labor and machinery, estimating the volume of production and creating an internal and external communication system. and has a job; The task of control is the organization and combination of natural resources, labor force and means of production in a coordinated unit, to achieve the desired results. Within the modern industrial accounting organization, it is one of the management tools that enables effective communication between the primary planning task and the secondary control task. The customer's demand for high quality and quick service has increased the pressures that did not exist before. As a result, companies can no longer handle all the work alone, although all industrial accounting systems are necessary in the organization, but in the existing competitive market, economic and production enterprises, in addition to paying to the organization and internal resources, have also found themselves in need of managing and monitoring resources and related elements outside the organization. Therefore, activities such as supply and demand planning, procurement of raw materials for production and product planning, product storage service, inventory control, distribution, delivery and customer service, which were all done at the company level, have now been transferred to the supply chain level. The key issue in a supply chain is the coordinated management and control of all these activities, supply chain management is a phenomenon that does this in a way that customers can find reliable and fast service with quality products at minimum cost. In this regard, decision-making centers need support systems to guide and allocate resources, and supply chain management can be a system that provides great help to managers throughout the chain.

Supply chains connect suppliers to a manufacturing company and the company to its customers. To properly manage the supply chain, it is necessary to ensure excellent customer service, low costs and short cycle times. Supply chains have different types, the most important of which are ``built-to-stock'', ``continuous replenishment after emptying'', ``make-to-order''. and "channel montage" pointed out Supply chain management is difficult due to the uncertainty in demand and supply and the need to coordinate between multiple business partners. Information technology has also taken an effective step in solving the mentioned problems with the support of the provided solutions, including software (supply chain management), customer relationship management, capital resource planning [3], optimal production technology [4] as well as advanced and integrated modes of supply chain management and customer relationship management. The second form of information technology assistance to the supply chain is through the e-commerce function, which provides it by automating the processes and integrating the main activities of the business job through an electronic structure. But order execution is also difficult for many customers in e-commerce due to the need to carry small packages of goods, which can be solved through solutions such as same-day and even same-hour delivery and automatic warehouses. 1-2-Statement of the problem The success of many private, government, and military organizations depends on their ability to provide approved outputs. Providing better products in a wide range and at a low cost and doing it quickly. The optimal delivery of these outputs (cost, quality, performance, delivery, flexibility and innovation) depends on the organization's ability to manage the flow of materials, information and money inside and outside the organization. This flow is known as the supply chain. Because supply chains can be long and complex and involve a large number of business partners, problems arise during them. If these problems are delayed in solving, they will lead to customer dissatisfaction and loss of sales, and the organization will incur high costs to solve them. World-class companies attribute much of their success to supply chain management, which is largely supported by customer relationship management. One of the largest companies in the country in the field of steel production is Esfrain Steel Company. Considering the role and importance of supply chain management in the optimal administration of the company and customer relationship management as a complement to the management process, in this research, as a case study, the study of the interrelationship of various aspects of supply chain management and customer relationship management has been studied. will be able to compete with other competitors, which requires more focus on customer needs and meeting their expectations. Today's business is not only related to development and improvement, delivery and sales, but also maintains long-term relationships with customers. One of the major developments in today's business practices is the increase in profit and interest as a result of customer satisfaction and improvement in supply chain management, so that if business units focus on new customers, they are more likely to retain and maintain customers and increase the value of the customer's time cycle. In other words, a business that does not meet the expectations of customers and does not have a stable and dynamic relationship with customers in the long term will disappear from the global competition scene in the long term. In today's era, the way of interactions between organizations has changed. These rapid changes in the global environment with high demand and, conversely, abundant supply, companies should be able to quickly integrate customer relationship management and supply chain management with the new situation in order to respond to today's market. Since no research has been done on the relationship between supply chain management and customer relationship management in Safrain Steel Company, it is necessary to fill the existing study gap and ultimately enrich the available scientific resources in the field of study. Also, carrying out such a research will lead to understanding the interrelationships of different dimensions of supply chain management and customer relationship management in the company and will ultimately cause more productivity in the company.