Difference between ERP and CRM

Difference between ERP and CRM

Currently, some modules of many ERP systems are duplicated by CRM, and some ERP vendors also claim that their ERP systems include CRM.

What to choose: ERP or CRM?

What to choose: ERP or CRM?

In fact, there is a big difference between them.

As competition in market intensifies, ERP is not very good at managing downstream (customer) supply chains. More and more businesses need to improve automation and scientificity of their daily sales, marketing and service business. This gave rise to CRM (Customer Relationship Management). In this way, CRM is like arm of ERP going beyond its reach.

Difference between ERP and CRM

Difference between ERP and CRM

ERP and CRM are enterprise software to improve profitability, but ERP aims to reduce management costs and costs, focus on products and internal optimization, while CRM is intended to increase profits through increase sales, paying special attention to client, and external optimization (focus). This is also fundamental difference between them.

Choose ERP or choose CRM?

If you just want to improve your sales and marketing processes and are happy with software you use for things like accounting and HR, then you probably just need a CRM system.

CRM system

CRM system

But when an enterprise reaches a certain scale, ERP and CRM become an inevitable double choice.

CRM system

Double selection

Large enterprises have already made a clear choice: ERP+CRM. They need an ERP system to manage multiple branches/factories, distribution centers, supply chains and currencies; at same time, they also need a CRM system to manage sales, support, and marketing. Moreover, not only one set is used, there can be several sets of ERP and CRM.