1. An introduction to concepts and functions of each system
CRM (Customer Relationship Management)
Customer Relationship Management
The definition of customer relationship management is that in order to improve core competitiveness of enterprises, they use appropriate information technology and Internet technology to coordinate interaction between enterprises and customers in sales, marketing and services, so as to improve their management. methods and provide customers with innovative products process of personalizing customer interactions and services. Its ultimate goal is to attract new customers, retain existing customers and turn existing customers into regular customers to increase market share.
The goal of implementing CRM is to reduce enterprise costs by comprehensively improving enterprise business process management, as well as attracting and retaining more customers by providing faster and smarter high-quality services. As a new management mechanism, CRM has greatly improved relationship between enterprises and customers, and is being implemented in customer-related areas such as marketing, sales, service, and technical support for enterprises. The CRM system can receive customer needs in a timely manner and provide services to customers so that enterprises can reduce soft costs.
PLM (Product Lifecycle Management)
Product Lifecycle Management
PLM includes all PDM content (Product Data Management, Product Data Management), and PDM function is a subset of PLM. However, PLM also emphasizes concept of managing and using all information throughout supply chain throughout the life cycle of a product, which is a significant difference from PDM.
PLM is a kind of information creation and support for entire life cycle of products, which is applied in enterprises in one place and scattered in several places, as well as between enterprises that have a collaborative relationship in field of a product. research and development A series of application management, distribution and application solutions that can integrate product-related human resources.
SCM (supply chain management)
Supply chain management
Supply chain management is an integrated management idea and method that performs functions such as planning and controlling logistics from suppliers to end users in supply chain. From point of view of an individual enterprise, SCM revolves around core enterprise and integrates and optimizes flow of information, logistics and capital flow in supply chain, improving relationship between upstream and downstream supply chains to gain competitiveness. enterprise advantage. The supply chain system can optimize cost and cost of product, and mainly serves production of enterprises.
SCM mainly uses information tools to plan, ship, distribute, control and use various materials, tools, information and other resources in each supply chain, forming an integrated system for users, retailers, distributors, manufacturers, purchasing and supply. The functional whole of supplier's entire delivery process.
ERP (Enterprise Resource Planning)
Enterprise resource planning
ERP is an enterprise information management system mainly focused on manufacturing industry for integrated management of material resources, capital resources and information resources. ERP is an enterprise management software that uses management accounting as its core and can provide real-time information integration across regions, departments, and even companies. Enterprise management software for integrating material resource management (logistics), human resource management (human flow), financial resource management (financial flow) and information resource management (information flow). ERP has remarkable features such as integration, systematization, flexibility and real-time control.
The idea of supply chain management of ERP system puts forward higher requirements for enterprises and is main management mode for prosperity and development of enterprises in information society and era of knowledge economy.
MES (Production Management System)
Process management system for a manufacturing enterprise
The MES system is a set of production information management systems for executive layer of shop floor of manufacturing enterprises. MES can provide enterprises with production data management, planning and scheduling management, production planning management, inventory management, quality management, human resource management, work center / equipment management, tool management, purchasing management, cost management, Kanban project management, production management such modules such as process control, basic data integration and analysis, and top-level data integration and decomposition create a robust, reliable, comprehensive and feasible co-production management platform for enterprises.
MES can optimize management of entire production process from order placement to product release through information transfer. When events occur in plant in real time, MES can respond and report on them in a timely manner, as well as guide and process them using current accurate data. This fast response to state changes allows MES to reduce activities without adding value to enterprise and effectively manage production and operation process of factory, so that it can not only improve factory's ability to deliver on time, improve handling performance of materials, but also improve profitability of production.
2. Differences and connections
Difference and relationship between CRM and ERP
In terms of management philosophy, ERP management philosophy is to improve ability to plan and control company's internal resources. We can say that quality of customer service depends on efficiency.
The concept of CRM is based on establishing, developing and maintaining customer relationships. Their philosophies differ in their focus. Compared to ERP for enterprise-level internal resource planning, CRM focuses more on market and customers. Because today's customers can not only contact various products and services through sales forms provided by traditional markets, but also easily find products and services they are interested in through call centers or Internet. Their mode of consumption changed from passive acceptance to active choice.
Therefore, role of CRM is mainly in departments that are in direct contact with customers. It is mainly aimed at marketing, sales and service departments of enterprises, including management of entire customer life cycle and other stages, and provides enterprises with information about customers and purchased products. Information tools and functions such as product statistics, tracking and services .
In other words, if ERP is a comprehensive application for enterprise-level management, then CRM is vanguard of ERP, and its role goes beyond what ERP could not do before. Compared to ERP systems, CRM products are more focused on managing sales, marketing, customer service, and support. In fact, value of CRM lies in emphasizing importance of sales management, marketing management, customer service and support. The CRM system itself It can be considered as part of ERP in a broad sense, and they should be able to form a single closed system.
Difference and relationship between PLM and ERP
PLM is a technology used to manage all information related to a product (such as component information, configuration information, graphics file information, structure information, etc.).authority formation, etc.) and all processes related to product;
ERP is a technology for unified management of all resources and processes associated with enterprise and production, with an emphasis on logistics management in manufacturing sector. Its representative functions include: basic production planning, material demand planning, purchasing demand planning, financial system management, inventory management, etc. The purpose of PLM is to control product quality from design source through efficient data management or product processes, realize "open source" and "generate money", reduce direct costs, provide enterprise R&D capabilities, shorten product life cycle and improve enterprise. core competitiveness.
The goal of ERP is to "reduce costs" and "save money". It is hoped that through effective management of enterprise resources, indirect costs can be reduced and production capabilities can be improved.
The PLM system supports innovation by focusing on product research and development to improve profitability, promote innovation in both products and processes, and bring "outstanding" products to market quickly; The ERP system emphasizes control, manageability by need to manage visibility and control of business operations that have financial implications.
Difference and relationship between SCM and ERP
SCM and ERP complement each other and belong to two fundamentally different categories. They have different goals, different fields and objects involved, different business properties, different processes, and require different decision structures and system implementation methods.
Although in process of implementing ERP there are many very complex problems to be solved, these are mainly internal problems of enterprise, and in process of implementing SCM, in addition to related internal problems that need to be solved, who else. This is a number of issues, such as supply chain manager, who is executor of supply chain, how to reflect effect of implementation of system, who is actual beneficiary of system, who should bear costs associated with system and how to share them.
ERP is an asset-based system that is usually shown as an asset on balance sheet and depreciated as part of sales management fee. However, SCM is a cost-based system: geographic scope of corporate activities, increasing business complexity, and increasing supply chain length will result in a significant increase in cost of implementing and maintaining an SCM system. Therefore, cost of SCM should be treated as a direct selling expense on company's income statement. As a "rule maker", both an ERP system and an SCM system are needed.
Thanks to introduction of ERP, internal businessThe EU and management processes of an enterprise can be streamlined and information can be managed in a unified way, which creates a transactional advantage over "compliance with rules". "Rule makers" use these advantages to formulate rules and change rules, and to force "rule keepers" to follow those rules in various forms. SCM is a tool for "rule makers" to "manage" supply chain.
Difference and relationship between MES and ERP
The focus of ERP is finance, that is, enterprise resource planning from a financial point of view. Related modules are also being developed with finance as core and final management data is also focused on financial reporting. .
MES focuses on production, i.e. product quality, on-time delivery, equipment utilization, process control, etc. These are objectives of management.
The scope of ERP management is broader than MES, and MES management is more subtle than ERP. As part of enterprise resources, enterprise production resources are also under ERP management and, accordingly, have functional modules such as production planning, data collection, quality management, and material flow management, so they are often confused with MES.
However, scope of ERP management is mainly based on work center. MES can describe each production process in more detail and perform task assignment, execution control, data collection and on-site planning for each process. If ERP is to provide process-level control, custom development is required.
ERP basically implements management by filling out forms and flipping them. Production orders received on site are submitted via forms, and on site production data is also collected by filling out forms. MES implements control in form of events. Changes in production orders and production conditions on site immediately trigger appropriate events through built-in work in progress mechanism of MES, requiring appropriate personnel or equipment to perform appropriate actions.