Difference between CRM, ERP and SCM

CRM system (customer relationship management system), ERP system (enterprise resource planning system) and SCM system (system supply chain management) These are three hot topics of modern enterprise information system: whether it is CRM, ERP or SCM, its main goal is to reduce inventory, accelerate capital turnover, improve level of enterprise management, and ultimately improve competitiveness of enterprise core. But what is difference and connection between them?

The difference between CRM, ERP and SCM

(1) CRM-system is intended for development of customer-oriented behavior in business and implementation of customer-oriented business processes. The CRM system compensates for lack of ERP in foreground: by analyzing data obtained during sales, it extracts valuable information for enterprise and returns it to marketing activities, as well as to production and production system of enterprise. This requires mobilization of all enterprise resources to provide customer service to increase customer satisfaction and loyalty, as well as improve business performance.

(2) The ERP system is based on information technology, focused on systematic management of internal business processes of enterprise and implementation of internal information exchange. Generally speaking, for successful implementation of ERP, it is necessary to carry out business process reengineering (BPR) of enterprise. ERP completes management of an enterprise's internal supply chain and integration of internal business processes, and improves operational efficiency of an enterprise through this integration.

(3) The SCM system was originally developed on basis of ERP. It plans, organizes, coordinates and controls logistics, information flows and capital flows, which makes this process one. SCM covers all links in supply chain, enhances coordination of enterprises in supply chain and integration of external logistics, capital flow and information flow, and compensates for shortcomings of ERP.

Relationship between CRM, ERP and SCM (1) CRM system and SCM system are interdependent. Market strategy, sales management and collaborative relationships in CRM have a direct impact on SCM; at same time, SCM will also have a direct impact on customer satisfaction in CRM.

(2) There is a relationship of mutual support and interdependence between CRM system and ERP system. First, production ERP system provides rich data for data warehouse in CRM. Secondly, results of CRM analysis and market forecast provide data for decision making for ERP system. Finally, CRM enhances competitiveness and profit of an enterprise in terms of improving customer relationships, while ERP enhances competitiveness and profit of an enterprise in terms of optimizing production process of an enterprise.

(3) Both CRM system and SCM system can work independently and be effective, but for whole system to have a greater effect, it must be supported by ERP system, and ERP is also the basis of e-business and e-commerce.

CRM system, ERP system and SCM system are different and interconnected, and only when CRM, ERP and SCM systems are combined, they can form a complete closed cycle and play greatest role in development of an enterprise. Yihaisoft has been implementing CRM, ERP and other enterprise information systems for 10 years and can provide customers and partners with "on demand" industry solutions.