posted by Max Watkins on April 19, 2022

CRM and ERP – What is the difference_600x600The world of Business Technology is vast and can be confusing. One thing that can make things even more difficult is abbreviations for example CRM, ERP or even YMCA. If your search has brought up the last one you might be a little bit lost. 

Don’t worry though, in this article we will only be focusing on the first two, phew! This will cover what CRM and ERP stand for as well as what really is the difference between the two. The sooner you know how both vary it may help with future buying decisions for your business as not understanding the difference could have your business miss out on revenue. 

What do CRM and ERP stand for?

CRM or customer relationship management systems, as the name suggests, focuses on the customer-facing side or front end of your business helping you focus on:  

  • Sales Automation 
  • Customer service 
  • Marketing 
  • Dashboard reporting 
  • Forecasting 

On the other hand, ERP, or enterprise resource planning system you guessed it focuses on the back end of your business. 

An ERP system is more commonly used within Manufacturing, IT and Financial Services due to what the system focuses on but that does not mean it can tick all the boxes. For instance, a typical ERP system will allow you to manage the following: 

  • Financial Management & Accounting  
  • Order Management  
  • Production & Supply Chain Management  
  • Warehouse Management & Fulfilment  
  • Inventory Management  

You may occasionally find a system that is both an ERP and CRM which can be beneficial. For example, Infor bought Saleslogix CRM and renamed it Infor CRM with the goal of seamlessly integrating with their ERP system.  

With a system that includes both you may also find the system difficult to manoeuvrer if, for instance, you are part of the marketing team for a foundry. This could be due to the main core of the system being built for the more operational side of the business. 

Why would I need a CRM System?

Having a CRM for your business can be beneficial for your day-to-day work life as well as increasing sales. to help better understand this topic feel free to have a look at a previous blog of ours: The Pros and Cons of Having CRM for a Small Business. 

Once you have access to a CRM you might realise that you have been wasting time on menial tasks as well as not getting the most out of the information already sitting in your database. One thing we like to say is a CRM helps reduce the time spent on tasks and increases the quality of what you do. 

Why would I need an ERP System?

An enterprise resource planning system or ERP helps manage your overall stock, and operations and helps provide transparency into your complete business process. This is done by tracking all aspects of production, logistics, and financials. 

A system like an ERP is more focused on helping a variety of industries like metal foundries. Without having access to an ERP their entire back-end process can become difficult to move through and allows a variety of issues to appear. 

You may question if you could do without either of the two, the answer is yes but is it beneficial to the future of the business? Systems like a CRM or ERP are crucial to future-proofing the stability and workflow of your business. 

If you already have an ERP and are questioning if adding a CRM would be beneficial to your business, then let us help you answer that. We will also be posting an article focusing on the subject to make sure you get the right answers as well as the correct solution for your business. 

These systems have been created to give you a 360-degree look at how your company works and in doing so, allow you to focus on what you need to instead of what you have to. If you are unsure about what is right for your business and unsure who to talk to then please, get in touch. 

  • Where can I get more advice?

    With us! If you need help with choosing a suitable CRM system for manufacturing and engineering, or you want to make sure that your CRM project will be a success, talk to our team. We offer a free, independent CRM consultation that will help you get started with your CRM project. During the session, one of our CRM experts will help you define your needs, what your goals are and what tools you need to achieve these goals. Schedule your CRM consultation now!