When you’re a manufacturer or job shop and you start looking for an enterprise resource planning software solution (ERP), return on investment is certainly an important part of the criteria. Not only is the software needed for ERP something of a financial investment, but the labor and personnel time expense often considerable. There are many reasons why to invest in ERP, and most of them are good reasons: Better shop floor productivity efficiencies, better inventory management, improved front office administration, reliable quality control, and the list goes on and on.

However, one of the most important, yet least appreciated, reasons to employ ERP in a manufacturing or job shop setting involves the enhancement of the relationship maintained between the business and the customer. Referred to as Customer Relationship Management (CRM), the application is often part of the more robust ERP software solutions, and it is vital in today’s competitive global market environment.

In most instances, within the better ERP solutions, the expense of CRM is far outweighed by the manifold positive results found in the practice of building of long-lasting lifetime customer values. They are benefits that offer a competitive edge to those who invest resources (labor and monetary) to acquire CRM.

For example, improved relations with existing customers will more often than not lead to increased sales. Anticipating customer needs through the analyses of historic trends helps companies more readily identify the specific requirements of customers. Additional product purchases, services, and/or upgrades can be cross-sold, suggested, or added to existing or prospected orders.

Of course, the relationship between sales and marketing is absolute, and the more reciprocal the support one has for the other the more likely the increase of sales over time. CRM allows information flow between marketing and sales in order to give guideposts that light the way in understanding customers in advance of the salience of their future needs.

Another underrated benefit of CRM is found in the R&D side of business. Even in manufacturing and job shop industries where product engineering requirements are routine and job orders reoccurring, developing new or improved products, services, and even shop capabilities are the practices that help a company grow. New business won as a result of CRM data analysis offers a tremendous payback opportunity for the investment, as well as providing a more personal approach to retaining existing customers. A pro-active R&D program that is based in CRM also enhances company reputation, which in turn precedes the actual sales staff effort.

All in all, the benefits of a sophisticated and fully integrated CRM are realized by a positive ROI. That a manufacturer or job shop engages the CRM practice in market niches where their competitors do not, the world becomes the oyster of fertile exploration, and new customers their pearls.

This entry was posted on Monday, June 9th, 2008 at 9:00 am and is filed under CRM. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.