In: Operations Management
What is CRM and what role does it play in logistics?
CRM (Customer Relationship Management) is a strategy adopted by organizations to stay connected with the customers and improve the level of interaction. It is critical for improving the service level, streamlining processes and increasing profitability for a firm. The logistics is an important aspect of customer service and product cost. As there can be high variability in delivering product to customer due to external variability's, CRM helps to stay connected with customers and provide adequate information on timely basis. The use of GPS, e-tracking etc. are important tools for providing real time information to customers. Basis the customer need, the logistics can be aligned to best suit the requirement. Example: If the item is urgently required, the mode of transport can be changed from Road to Air. But, all this is possible only with strong CRM. So, CRM is very critical for logistics.