Which subsystem is essential for managing customer relationships?

Customer relationship management (CRM) is the subsystem specifically designed to effectively manage an organization's interactions with current and potential customers. This system focuses on improving customer relationships by analyzing data about customers' history, preferences, and behaviors. CRM systems enable businesses to streamline processes, enhance customer satisfaction, and maintain better communication with clients. They incorporate various tools and techniques to manage customer interactions, ultimately aiming to boost customer loyalty and retention.

In the context of the other options, supply chain management focuses on the flow of goods and services, overseeing the entire production process from raw materials to final delivery. Inventory management deals with the ordering, storing, and utilization of a company's inventory, ensuring that the right amount of products is available at the right time. Financial management involves managing an organization's finances, including budgeting, forecasting, and controlling financial resources. While all these subsystems are crucial in their own right, they do not specifically address the dynamic and complex nature of managing customer relationships as CRM does.