ERP CRM are two systems that frequently come up in the context of business management, but they serve different purposes. Their names are sometimes confused, even though they support different areas of business. Understanding the differences between ERP and CRM makes it easier to choose the right tools. Thanks to them, carrying out many day-to-day tasks at work will simply be easier and run more smoothly. This enables more efficient work. This, in turn, impacts the profits generated by companies. However, the two systems differ in terms of the scale at which they operate. Both can also be useful in other companies, depending on both their size and the nature of their business. So, to begin with, we’ll explain what both systems are.
What is CRM?
CRM systems are software designed for customer relationship management. They allow you to keep all customer information in one place. From contact details, through information about staff and telephone calls made, to completed sales. CRM also makes it easier to plan everything relating to customer contact. It acts as a sort of calendar in which you can schedule every email or telephone call. All these features simply enable more efficient and effective customer service. This, in turn, leads to increased customer loyalty and higher sales. Not only does it work well with a single client, but it also allows you to manage a larger number of them. CRM also makes it easier to train new staff and, if necessary, cover for them during their absence. Having all information in one place improves the flow of information within the company.
What is the ‘ERP’ system?
It is a tool that can, in effect, contain all of a company’s resources. It is a kind of database that allows easy access to the information required. However, in addition to this, such systems also have features that enable the automation of certain processes, as well as reducing costs. In systems such as ERP, all company accounts can be managed – including those relating to customers, suppliers and tax matters. Quite simply, a company’s accounts can be managed using such a system. This sort of software enables a company to take its operations to the next level. In businesses involved in trade and manufacturing, it will help to significantly reduce costs. More accurate calculation of material and goods requirements, and shorter storage times for everything – these are precisely the tasks for which the system at ERP can be utilised. Recording sales and all customer interactions is another area where an efficient system such as ERP will prove helpful. Yes, these latter features are exactly the same as those in the CRM system. The ERP system is therefore much more comprehensive.
See also: Online wholesale business – what is it and how do you set one up?
Differences between CRM and ERP
ERP is a much more comprehensive tool. CRM will prove useful in virtually any business, even a micro-enterprise or for a freelancer. This is simply because it is software that makes working with clients easier, and every business needs such functionality. ERP is a powerful tool for managing the entire organisation. For sole traders, most of the features may be completely unnecessary. It is only small and medium-sized enterprises that will be able to fully utilise the potential offered by this type of software. However, if a smaller business is set to grow significantly and expand its areas of operation in the long term, a suitable system such as ERP may prove useful. If a company already uses ERP, it generally makes little sense to implement the system at CRM, as it is usually already included within this more comprehensive tool. CRM will only be useful for customer relations; it will not reduce production costs if the company is involved in manufacturing, nor will it make dealings with the authorities more efficient. That is what external tools are for – or, indeed, the ‘ERP’ system, which integrates them all.
See also: The ‘ERP’ system – what is it and what is it used for?
Summary
ERP and CRM are responsible for other processes within the company. It all depends on the size of the company and the sectors in which it operates. Larger companies will certainly be able to make use of many of the features offered by ERP, which are comprehensive business management tools. CRM can help increase sales and improve customer relations. There is never any point in using both tools. Every system at ERP already includes CRM, so this would amount to duplicating the same functions.
See also: ERP programmes – examples of software available on the market ERP
Questions and Answers
What is the difference between ERP and CRM?
ERP manages the company’s resources and processes, whilst CRM manages customer relations. The two systems fulfil different roles.
What is the ERP system used for?
ERP It supports the management of finances, stock, production and logistics. It integrates data from various departments.
What is the purpose of CRM?
CRM It is used to manage contacts, sales and customer relations. It helps to organise the work of sales staff.
Can ERP and CRM work together?
Yes, integrating the two systems improves work efficiency. It enables a consistent flow of data.
Which system is more important in *B2B*?
It depends on the company’s needs. In practice, both systems are often equally important.