What are CRM and ERP?
If you are into a business, you might certainly have heard of ERP and CRM. These acronyms are familiar in the business world due to the incredible operational support offered by these software solutions.
The expanded form of ERP is Enterprise Resource Planning Software
The expanded form of CRM is Customer Relationship Management Software.
Both these can be termed as e platforms that help the business to coordinate operations and improve performance. Whenever we hear about these two solutions we may have several questions.
What are ERP and CRM?
Are they operating the same way?
How are they related?
So in this blog, we can find out
What is ERP?
What is CRM?
The role of ERP
The role of CRM
Difference between ERP and CRM
How to choose between ERP and CRM
So, shall we start?
Let us find out What is CRM?
CRM is a software platform that eases the customer relationship management operations of a business. We can say that every letter in CRM indicates different operations. While C indicates the role of CRM in managing customer, sales, and marketing operations, R stands for the software support to maintain a relationship with the client and post-sale support. The third letter M indicates the management of the delivery of products and services. IT also supports to track delivery operations.
CRM not only helps you to manage customer contacts. Instead, it assists a user to improve the relationship with customers and customer segments.
Key highlights of CRM
- Manage sales
- Pipeline management
- Generate leads
- Quotation management
- Sales team management
- Customer management
- Customer relationship management
- Improves communication with customers
- Introduces marketing tools
What is ERP
1) ERP is a software tool that can be used to coordinate and organize different activities taking place in an organization. That means ERP can replace human activities to a great extent and manage different roles at the same time.
2) ERP supports the management of the organization or the industry. Manage the operations of an institution using ERP
3) It also supports the management of resources including manpower, machines, and finance.
4) It can help you plan your projects, schedule programs, and prepare a database and ensure quality standards.
5) ERP can work as a link between different departments of an organization.
6) Want to coordinate all operations and ensure smooth coordination of all your internal wings?
7) ERP would be the right choice for any organization.
8) This e-platform supports a business to manage every activity from manufacturing to supply chain management, accounts and finance to human resources management and quality support to customer management.
Key highlights of ERP
- Manages Manufacturing
- Support Warehouse management
- Assists in Accounting
- Guarantees quality standards
- Assures better supply chain management
- Efficient use of human resources
An ERP, in short, helps the business to manage every operation, whereas CRM focuses more on customer management. Both these solutions have different functions. ERP can be customized to perform different types of operations and CRM is dedicatedly used for improving customer satisfaction
Are ERP and CRM different?
Both CRM and ERP are software tools that can help you improve the performance of the business. Both can be used by an organization, institution or industry. With similar focus, these two software solutions help the business to grow.
At the same time, these two solutions operate in entirely different ways. While CRM's focus is to grow business by improving customer relationships, ERP focuses on resources and money management for improved business.
Now let us find out
The link between CRM and ERP
As we have mentioned earlier, ERP is comprehensive software support that can support all business operations. Meantime, CRM handles only customer management and its subsidiaries like sales, marketing, and customer handling. This way we can consider CRM as a component of ERP. CRM can be easily integrated with other ERP solutions to strengthen ERP solutions. That means an ERP that efficiently manages finances, supply chain, human resources, inventory and other operations can also coordinate customer relationship management once CRM joins hands with ERP.
How can ERP get CRM features also?
CRM and ERP integration
A customer relationship management software can be integrated easily with an ERP solution strengthening the operations of ERP. It can support the ERP to improve sales and marketing operations and improve customer relationships.
The integration will help the ERP to get additional features like sales management, lead management, conversion of leads to opportunity, sales team management, and marketing tools.
CRM can go well with different ERP tools including manufacturing, accounting, and supply chain
Which is suitable for your business?
The selection of ERP and CRM can be done only based on the requirement of the business. If you want to support only for improving customer relationships and for planning marketing activities CRM can be a suitable solution for your business. But if your plan is to focus on CRM along with other activities it would be better to choose an ERP.
ERP can offer you a total solution for employee management, machine management, customer management, and every other aspect.
Can CRM stand alone?
We have already found out that CRM is a part or subsidiary of an ERP. However, it is true that CRM can have an independent existence. A CRM can either stand as a part of ERP or standalone or support your business.
CRM can easily help you to streamline all sales activities. It can help to improve the sales pipeline and automate customer management services. It can support the business to manage customer contacts and generate customer profiles. CRM also speeds up marketing activity and generates sales and customer reports to improve business.
Quick glance at the benefits of CRM and ERP
| CRM |
ERP |
| Manage Sales |
Supply Chain Management |
| Pipeline Management |
Sales Activities |
| Generate Leads |
Purchase Management |
| Quotation Management |
Human Resources Activities |
| Sales Team Management |
WorkCentre Management |
| Customer Management |
Accounting and invoice generation |
| Customer Relationship Management |
Manufacturing Support |
| Improves Communication with Customers |
Sets quality Standards |
| Introduces Marketing Tools |
Improve Productivity |
| Customer Profile Management |
Work Hour Efficiency |
We are here to answer all your doubts and queries regarding CRM and ERP