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Moore Medical Corporation

Short Report

Jin Park
ECT 589
July 1, 2003
Moore Medical

Moore Medical, Inc. is a multi-channel marketer and distributor of medical goods to


physicians, emergency medical technicians, schools, correctional facilities, etc.

Needs a new CRM system and additions to their existing ERP system.

-desire to send out the perfect order to every customer in every instance
- to make the internal processes more efficient by reducing “inventory shelf life,”
both external and internal procedures will need attention.
How to allocate their resources to best realize a return on their investment (ROI).

Possibilities:

ERP II system while adding the demand planning bolt-on components to their current
underperforming ERP system.

Seeks to optimize it’s supply chain and reduce inventory,

Information needed:

In order to make the decision of how to manage the investment, we will need to look at
what Moore Medical’s critical needs are:
1. They have an ERP system that can not forecast demand because it is reactive to
market conditions instead of predicting what demand will be.
2. The ERP system also cumbersome in creating a bid and/or quote for customers
and the related information between customers and their quotes.
3. The ERP system was not flexible enough to handle Moore’s preferred pricing
method.
4. Customer service representatives were taking longer to handle orders because
the system was more vertical and difficult to navigate horizontally.
5. Account setup was in itself a two-fold problem. First, new accounts could not be
reviewed against existing accounts. This led to the second problem where
information could be entered into the system more than once.
6. Eighty-four percent of Moore’s non-perfect orders stemmed from split shipments
and back-orders. This pointed at the lack of an efficient forecasting ERP.
7. Unable to determine why churn rate for customers was higher than the industry
average.
8. Moore’s product line was not broad enough for it to be considered a true “one-
stop” shop for all the customer’s needs to be filled.

Costs
By the end of 1999, Moore Medical had spent almost $7 million with Arthur Andersen
Consulting and an ERP system designed by J.D. Edwards. Their CRM initiative began to
take shape at the beginning of 2001with Clarify Consulting responding to a Request for
Proposal and coming in at the best value and service.

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Moore Medical

Second, the success of a CRM system depends heavily on the vision of the company and
if Moore does not already have these ideas fleshed out, it would be advisable to start once
they are.

How should Linda Autore, the CEO of Moore Medical, Inc., determine whether IT
was the solution to a particular problem, such as customer acquisition and
retention, or whether another approach was better?

Given the current set of tools that Moore has, it does not seem possible to measure the
effect of IT on the current problem of acquiring and retaining customers. Some
immediate business techniques that they could use include: (Lexis-Nexis, Form 10-K)
• A forum of customers to retrieve feedback on the current product line.
• An online survey or contest to gather information from customers.
• Sponsor a focus group to identify what area(s) Moore Medical can improve in to
meet customers’ needs.
• Work with manufacturers to become the preferred or excusive vendor of a product
or suite of products.

Options:
Harnessing the total power of the internet to reach and market to their customers. As
Moore encouraged its customer base to migrate to using the web as a transactional
channel, the sales and support staff was trained in using the site as well. This seems
redundant and an area that can be optimized.

View the web site as the primary interface toward the customer and making it easy
and convenient to use. Also, to make sure that FAQ’s are accessible and available would
be imperative to discovering areas of savings and improving on the relationship with the
customer. Especially as the amount of sales in the coming years was expected to grow
significantly, the benefit of the cost would be recognized immediately and could increase
over time.

How can Moore Medical Inc. pursue the


development of CRM? What are the 1. CRM Vision
components, process, and benefits? 2. CRM Strategy

In order for Moore to pursue the development of 3. Valued 4. Organizational


CRM: Customer Collaboration
Collaboration
Experience

1. Make sure that their Vision and Strategy 5. CRM Processes


are in-line with the CRM initiative. 6. CRM Information
2. Next, Moore will need to focus both 7. CRM Technology
externally (to customers’ values) and 8. CRM Metrics
internally (organization-wide acceptance) Courtesy S. Chan

in order to gain momentum.


3. CRM processes, information requirements
and technology needs must be well defined

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Moore Medical

before looking at “what’s out there.” This way, the company can focus on what
the needs are instead of what they may want. Finally, Moore must take a hard
look at what metrics will need to be collected and analyzed for forecasting
into the future and meeting their customers’ needs.

Some of the critical success factors that directly impact Moore are:
1. To know which strategies will support the corporate goals and to tie
measurement processes to them.
2. To ensure that the skills, knowledge and associated behaviors required by the
workforce support the enterprise’s CRM strategy.
3. To change the compensation of the workforce to achieve the desired
behaviors and cultural shift and motivate employees to rally behind the strategy.

The benefits to implementing the CRM system would improve customer relations and
profitability. Some of the benefits that Moore could realize include consistency across
channels, employee empowerment and compensation, and involvement of collaborative
partners. Retaining customers in turn could in turn increase profits for Moore and take
care of their high churn rate. (Lusey)

Conclusion
Moore Medical has a number of issues it needs to address before it can really make a
good decision. The answer could have been found in acquiring a CRM system, adding
bolt-on modules to the existing ERP system, or going some other non-technological
route. In understanding where the needs are and what the benefit would be in investing in
these areas, it is imperative that Moore continue to fund the IT side of their business, as
well as develop their overall business plan in order to harmonize the systems with the
company’s vision and goals.

Moore employees will need to be thoroughly trained in using the system and
understanding the benefits that come with it. Also, the web site will need to be optimized
to meet the needs of the customer and free up sales people to actually make sales.

Building the system that would accommodate Moore’s needs would take time and
investment of dollars. However, both the short and long-term ROI’s should be realized as
long as they stay customer-focused and true to their aim of being a one-stop shop that
meets all their customers’ needs.

References
Chan, Susy. Customer Relationship Management and Selling Chain Management
(PowerPoint presentation).

McAfee, Andrew. Moore Medical Corporation. Harvard Business School Case, 601-142,
1-18, Harvard Business School (Cases) and Harvard Busine, rev. Sept. 5, 2001.

“About Moore,” MooreMedical.com URL: http://www1.mooremedical.com/index.cfm?


PG=Gen&FN=AboutMoore&CS=HOM

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Moore Medical

“Our History,” MooreMedical.com. URL: http://www1.mooremedical.com/index.cfm?


PG=Gen&FN=OurHistory&CS=HOM

“Executive Summary,” MooreMedical.com URL:


http://www1.mooremedical.com/index.cfm?
PG=Gen&FN=execsummary&CS=HOM

FORM 10-K. Lexis-Nexis™. URL: http://80-web.lexis-


nexis.com.ezproxy.lib.depaul.edu/universe/document?
_m=f19800026f9387e66fd70ccef3d79403&_docnum=1&wchp=dGLbVzb-
lSlzV&_md5=5d86a10161c676254c2ee1ebbe59210b

Lusey, Patrick. The Benefits of Customer Relationship Management (CRM). URL:


http://www.uptrends.com/html/benefits.html

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