Deck 9: Achieving Operational Excellence and Customer Intimacy:

Question 1

Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget.

Answer 1

True

Question 2

Wal-mart's strategy of continuous replenishment of inventory based on actual customer purchases is an example a pull-based SCM model.

Answer 2

True

Question 3

Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources.

Answer 3

True

Question 4

In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products.

Question 5

Enterprise systems require fundamental changes in the way the business operates.

Question 6

Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.

Question 7

CRM software can help organizations identify high-value customers for preferential treatments.

Question 8

Implementing an enterprise application typically requires organizational change as well as adjustments to existing business processes.

Question 9

You would expect to find PRM and ERM modules in the most comprehensive CRM software packages.

Question 10

Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.

Question 11

The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain.

Question 12

In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain.

Question 13

To minimize the expense of implementing an enterprise system, businesses can opt to curtail the customization of an enterprise package and instead change business processes to match the software.

Question 14

Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain.

Question 15

Enterprise systems are typically built around one or two major business workflows.

Question 16

The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers.

Question 17

Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business.

Question 18

Major CRM application software vendors include Siebel Systems, PeopleSoft, SAP, and Salesforce.com.

Question 19

Cross-selling markets complementary products to customers.

Question 20

Enterprise systems are designed primarily to allow communication between an organization and outside partners and suppliers.

Question 21

Uncertainties arise in any supply chain because of

A) inaccurate or untimely information.
B) poor integration between systems of suppliers, manufacturers, and distributors.
C) inefficient or inaccurate MIS.
D) unforeseeable events.

Question 22

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take?

A) Select the functions of the system you wish to use.
B) Select the business processes you wish to automate.
C) Map the company's business processes to the software's business processes.
D) Map the software's business processes to the company's business processes.

Question 23

A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy.

A) just-in-time
B) frictionless
C) bullwhip
D) safety-stock

Question 24

Why is overstocking warehouses not an effective solution for a problem of low availability?

A) It does not speed product time to market.
B) It is an inefficient use of raw materials.
C) It increases sales costs.
D) It increases inventory costs.

Question 25

A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect.

A) network
B) bullwhip
C) ripple
D) whirlpool

Question 26

From your reading of the Cannondale case study, the firm implemented new information systems in order to achieve which of the main six business objectives?

A) customer and supplier intimacy
B) survival
C) competitive advantage
D) operational excellence

Question 27

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with

A) configuration tables.
B) Web services.
C) data dictionaries.
D) middleware.

Question 28

A company's organizations and processes for distributing and delivering products to the final customers is the

A) supplier's internal supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.

Question 29

A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a

A) distribution channel.
B) supply chain.
C) value chain.
D) marketing channel.

Question 30

Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ________ systems.

A) demand
B) delivery
C) planning
D) execution

Question 31

A company's suppliers and the processes for managing relationships with them is the

A) supplier's internal supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.

Question 32

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?

A) safety stock
B) continuous replenishment
C) just-in-time strategies
D) demand planning

Question 33

Which of the following is not True about enterprise systems?

A) Enterprise systems help firms respond rapidly to customer requests for information or products.
B) Enterprise system data have standardized definitions and formats that are accepted by the entire organization.
C) Enterprise software is expressly built to allow companies to mimic their unique business practices.
D) Enterprise software includes analytical tools to evaluate overall organizational performance.

Question 34

Enterprise software is built around thousands of predefined business processes that reflect

A) the firm's organization.
B) industry goals.
C) best practices.
D) cutting edge workflow analyses.

Question 35

Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems.

A) push; pull
B) demand; continual
C) upstream; downstream
D) planning; execution

Question 36

Supply chain complexity and scale increases when firms

A) move to globalization.
B) manage the procurement, manufacturing, and distribution functions themselves.
C) produce products and services that coordinate with hundreds or more firms and suppliers.
D) modify their existing workflows to comply with supply-chain management systems.

Question 37

A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes

A) SCM software.
B) ERP systems.
C) ERM software.
D) CRM modules.

Question 38

Components or parts of finished products are referred to as

A) upstream materials.
B) raw materials.
C) secondary products.
D) intermediate products.

Question 39

Which of the following is not an example of next-generation enterprise applications?

A) open-source solutions
B) on-demand solutions
C) solutions incorporating SCM
D) solutions incorporating SOA

Question 40

In order to achieve maximum benefit from an enterprise software package, a business

A) customizes the software to match all of its business processes.
B) uses only the processes in the software that match its own processes.
C) changes the way it works to match the software's business processes.
D) selects only the software that best matches its existing business processes.

Question 41

The business value of an effective supply chain management system includes all of the following except

A) faster time to market.
B) cost reduction.
C) supply matched to demand.
D) increased inventory levels.

Question 42

________ management is an important capability for service processes that is found in most major CRM software products.

A) Returns
B) Lead
C) Account
D) Events

Question 43

A ________ is a method of interaction with a customer, such as telephone or customer service desk.

A) point of presence
B) touch point
C) sales point
D) client channel

Question 44

SFA modules in CRM systems would provide tools for

A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.

Question 45

Capabilities of supply chain execution systems would not include

A) identifying the optimal transportation mode.
B) tracking the flow of finished goods.
C) managing materials.
D) managing warehouse operations.

Question 46

Concurrent supply chains are made possible by which technology?

A) ERP systems
B) the Internet
C) supply chain management systems
D) just-in-time supply-chain technologies

Question 47

________ modules deal with issues such as setting objectives, employee performance management, and performance-based compensation.

A) SCM
B) SFA
C) ERM
D) PRM

Question 48

Which supply chain planning function determines how much product is needed to satisfy all customer demands?

A) distribution management
B) replenishment planning
C) demand planning
D) order planning

Question 49

Marketing modules in CRM systems would provide tools for

A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.

Question 50

________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners.

A) SCM
B) SFA
C) ERM
D) PRM

Question 51

Supply chain ________ systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.

A) demand
B) delivery
C) planning
D) execution

Question 52

________ software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performance-based compensation, and employee training.

A) Enterprise
B) ERM
C) PRM
D) ERP

Question 53

Customer service modules in CRM systems provide tools for

A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.

Question 54

Selling a customer with a checking account a home improvement loan is an example of

A) operational CRM.
B) direct marketing.
C) cross-selling.
D) cross-channel promotions.

Question 55

A supply chain driven by actual customer orders or purchases follows a ________ model.

A) pull-based model
B) build-to-stock
C) push-based
D) replenishment-driven

Question 56

Customer relationship management systems typically provide software and online tools for sales, customer service, and

A) marketing.
B) account management.
C) advertising.
D) public relations.

Question 57

Supply chain planning systems

A) track the physical status of goods.
B) identify the transportation mode to use for product delivery.
C) track the financial information involving all parties.
D) track the status of orders.

Question 58

A build-to-order supply-chain model is also called a ________ model.

A) supply-based
B) demand-driven
C) replenishment-driven
D) push-based

Question 59

From your reading of the Southwest Airlines case study, the company implemented a new inventory management system to achieve which of the following six business objectives?

A) customer and supplier intimacy
B) new products, services, and business models
C) survival
D) operational excellence

Question 60

Which of the following would not be considered a contact point?

A) e-mail
B) Web site
C) intranet
D) retail store

Question 61

As they move through the ________, raw materials are transformed into finished products and shipped to retailers and customers.

Question 62

Operational CRM applications include tools for

A) identifying buying patterns.
B) calculating CLTV.
C) salesforce automation.
D) pinpointing unprofitable customers.

Question 63

Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?

A) churn rate
B) CLTV
C) cost per lead
D) cost per sale

Question 64

With new flows of information made possible by Web-based tools, supply chain management can more easily follow a(n) ________ model.

Question 65

To model its existing supply chain and make better decisions about managing inventory, a firm would implement the type of SCM called supply chain ________ systems.

Question 66

A company's suppliers and it's suppliers' suppliers constitutes the ________ portion of the supply chain.

Question 67

Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other.

A) e-business suites
B) ERP systems
C) middleware
D) legacy systems

Question 68

________ modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services.

Question 69

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.

A) operational CRM
B) analytical CRM
C) operational SCM
D) analytical SFA

Question 70

Which of the following is an important capability for sales processes that is found in most major CRM software products?

A) returns management
B) lead management
C) channel promotions management
D) events management

Question 71

In a(n) ________ strategy, components arrive exactly at the moment they are needed, and finished goods are shipped as they leave the assembly line.

Question 72

The measurement of the number of customers who stop using or purchasing products or services from a company is called

A) switching costs.
B) churn rate.
C) CLTV.
D) switch rate.

Question 73

________ consists of a set of interdependent software modules that support basic internal business processes for finance and accounting, human resources, manufacturing and production, and sales and marketing.

Question 74

Analytical CRM applications

A) include tools for marketing automation.
B) provide consolidated data for operational CRM applications.
C) are based on data warehouses consolidated from operational CRM applications.
D) provide customer-facing applications.

Question 75

Enterprise-wide ________ platforms provide a greater degree of cross-functional integration than the traditional enterprise applications.

Question 76

The most explosive growth in SaaS offerings has been for ________ software, exemplified by the leadership in hosted solutions by Salesforce.com

Question 77

________ integrate(s) multiple applications from multiple business functions, business units, or business partners to deliver a seamless experience for the customer, employee, manager, or business partner and provide a greater degree of cross-functional integration than the traditional enterprise applications.

A) PRM software
B) SFA software
C) ERP suites
D) Service platforms

Question 78

All of the following statements about enterprise applications are True except for

A) Enterprise applications are more successfully implemented when an organization has prepared for organizational change.
B) Once you have purchased and implemented a vendor's enterprise system, it is much less expensive to switch vendors.
C) The total implementation cost of a large system runs into millions of dollars.
D) Enterprise applications are based on organization-wide definitions of data.

Question 79

Analyzing customer buying patterns is an example of

A) CLTV.
B) analytical CRM.
C) operational CRM.
D) demand planning.

Question 80

________ CRM includes customer-facing applications such as tools for sales force automation, call center and customer service support, and marketing automation.