A. ApproachThe use of information technology by businesses seeking to gain a competitive advantage has increased significantly over the past twenty years. Companies large and small use information systems to link their internal business functions and company activities to stakeholders such as suppliers and customers. (FORMAN WEB 13). Supply chain management and customer relationship management are among the many systems used by businesses to accomplish the aforementioned functions. Before comparing supply chain management and customer relationship management systems with Tradition systems, a brief description of supply chain management and the activities it involves is fully warranted. This brief essay easily attempts to compare and contrast SCM and CRM systems with traditional management systems in terms of approaches, effectiveness, cost reduction and business profitability. Jiambalvo (2010) describes supply chain management as “the organization of activities between a company and its suppliers with the aim of ensuring the profitable development, production and delivery of goods to customers. (P, 15). Sunil and Peter further describe ( ) the supply chain as “consisting of all parties involved, directly or indirectly, in satisfying a customer demand. The supply chain includes not only the manufacturer and suppliers, but also the carriers, warehouses, retailers and even the customers themselves. Within every organization, such as a manufacturer, the supply chain includes all functions involved in receiving and processing a customer request. These functions include, but are not limited to, new product development, marketing and operations, distribution and finance, and customer service. implement the systems. Alan et al. (2009) state that “large-scale implementations lead to system-wide inventory optimization, which in turn leads to improved costs associated with sales and inventory turns. » (See page 21 for note) Mikko & et al (2002) conducted a study on the cost reduction benefits of SCM and found that “sharing demand information in supply chains generally increases supply chain performance by increasing availability and reducing inventory costs.” Another major distinction between the two systems and traditional management systems is that the former requires a small amount of input and output data to perform sophisticated and complex functions, while the latter takes and outputs a large amount of data.