CRM System – External Collaboration Functions of CRM.

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An aspect of Customer Relationship Management that is extremely important is the external functions. This might include vendors, distributors, and suppliers. These relationships and processes support the customer’s experience in many ways. When a company has a good relationship with a desired supplier then they are able to offer the customer certain items. If a business does not have a good relationship with a supplier then the customer can suffer if that is the only supplier that offers a particular item. (crm system)This will force a customer to go to another business who can give them what they want. The relationship with vendors and suppliers also contributes to the prices a company might offer for a certain item. If a company can only purchase certain merchandise from a supplier at a 5% discount then they may not even shelf the item.

This is because they don’t stand to make much of a profit once the item sells and it is a bigger loss to them if the item doesn’t sell and they have to mark it down as a clearance item. (crm system nordcom)If there is a good relationship with the distributor and the company gets a 40% discount on everything they purchase from them then they can offer the items at a cheaper rate because they will make more of a profit from the sale. The external collaboration functions impact the customer directly when they want to purchase a certain item that is not offered or when they are offered an item at one business significantly cheaper than from you.

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