CRM and ERP

CRM and ERP

Companies nowadays employ different strategies and tactics in making sure that their businesses perform efficiently, especially in terms of business management and customer service. This is one of the biggest reasons for the emergence, and continuing popularity, of customer relationship management (CRM) and ERP, or enterprise resource planning. It is common knowledge in business that using either CRM or ERP (or both) in your day-to-day company affairs will mean better company performance, internally and otherwise.

However, although CRM and ERP are both focused on helping businesses become more efficient and effective, these two business solutions or systems were actually created with different functions in mind, since it deals mostly with matters related to the organization or company itself. ERP works well if employed by SMEs, or small and medium scale businesses.

While ERP’s main purpose of existence is to create a system that businesses can use for managing a company’s business affairs or functions, CRM is more concerned on the demands of the customers, along with the needs of the business. While ERP handles matters related to customer service, purchasing, tracking of orders, product planning, inventory and manufacturing and financial procedures; CRM deals mainly with managing accounts, activities, customer support and contacts among other service related procedures. ERP concentrates more on internal matters.

These differences, though, do not really matter that much anymore as majority of businesses now integrate CRM and ERP. Vendors nowadays actually include ERP capabilities into CRM system that they offer. Some manufacturers and vendors are actually coming up with comprehensive software that has both CRM and ERP.

Since there is a need to communicate and to be constantly in touch with other departments, integrating CRM and ERP has become increasingly important. For example, if you have an online shop, you will need to consult your ERP module to get  information about product availability before using the CRM module to comply with the proper delivery procedures.

Years ago, when business systems and processes first became in demand, ERP and CRM functioned quite well independently. Now, with the many changes and developments in the business field, the integration of ERP and CRM has become especially significant.