What does CRM stand for in SCM?

• A. Systems and strategies that help manage customer information and relationships.
• B. A forecasting method for demand planning.
• C. A type of inventory control system.
• D. A performance metric for supplier quality.

Answer: (A)

CRM in supply chain management is about managing customer information and relationships through systems and strategies that track who the customers are, what they buy, when they buy, and how they interact with the company. This enables better service, more accurate demand signals, and smarter decisions across the supply chain, from forecasting to fulfillment. The option describing systems and strategies that manage customer information and relationships best captures this idea, since CRM centers on the customer and their interactions. The other ideas—forecasting methods, inventory control systems, and supplier performance metrics—pertain to other parts of SCM and do not define CRM.