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What is your understanding of integrated view of the organization and its relations with suppliers and customers? If an organization wants to be competitive, what needs to be done in the system integration aspect?
Do you think the CRM (customer relationship management) system should also be integrated with internal enterprise supply chain? You may relate to your organization's IT/IS status in this report.
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Research Report: Integrated view of Organizations, Suppliers and Customers
The integrated view between the organizations, the suppliers and the customers according to Barnes et al 2012, lies in total quality management. An organization spends its capital’s substantial part on buying the raw materials, important parts and even services. As a matter of fact, 60 percent of the cost of the products that are sold are constituted of the bought goods. Henceforth, quality of the suppliers can impact substantially the total cost of products and services(Barnes et al, 2012).
The main aim of obtaining products with higher quality and services lies in making the customers work with their suppliers in a partnership based environment for achieving the same level of quality as attained in the organization(Kosanke et al, 2002). The same goal is present with customers and suppliers also and that lies in satisfying the user in the end. The enhanced the quality given by the supplier, then enhanced in the position of relationship in the long term with the supplier because customers require better quality and they will have it. As both, the customers and the suppliers consist of resources in a limited manner, it is required for them to work in collaboration to each other as partners for maximizing the investment based return.
There are several forces that have changed the relations of the suppliers. Before 1980s, the decisions of procurement were basically based on price and henceforth the contacts were awarded to the bidder with lowest bid. Consequently, time and quality were complete at the brink of sacrifice. Individual force according to Deming states that consumer should stop giving award to businesses on the basis of low bids because price cannot have any basis if there is no quality. Additionally, individual suppliers for every items for helping in development of a long term loyalty and trust relationship is important(Kosanke et al, 2002). Therefore, the integrated view is always based on total quality management which makes the integrated relationship last for long term.