Major Difference Between ERP Software And CRM

Both ERP and CRM play important roles in improving businesses. What is the difference between ERP and CRM? This is a common question asked by many people. Let’s find here the differences between ERP and CRM. As per studies, using ERP and CRM are found to be very beneficial to increase sales and reduce costs. Before coming to the difference, let’s define what are CRM and ERP software first. CRM or Customer Relationship Management system is one of the common configurations used to manage sales and customer relationship. Unlike CRM, ERP is intended to manage productivity and employees in a company.

How CRM functions in a company? This is one of the widely asked questions by new comers in online marketing field. Use of CRM allow user to control all essential fields under one control. Project managers who wish to control marketing, sales, customer support and contact management under one control can definitely choose CRM. Similar to CRM, ERP is one of the widely used software by companies of all sizes. Today, ERP business software is a common configuration done to get good control over HR, manufacturing, finance and order management. Advantages of using ERP software vary from one business field to another.

Minimizing error in production is one of the main advantages keeping ERP in top position. Apart from reducing error, use of right ERP ensures high return on investment value in businesses. If you are an employee who wishes to reduce duplicate data, then never waste time to choose ERP system software. When you compare the functions of ERP and CRM in businesses, you can find a little similarity in operations. To get best result, project managers are advised to combine both CRM and ERP in businesses. Studies say that CRM is now becoming an essential part in ERP implementation process. Requirement of CRM implementation vary as per the complexity of project.

Proper resource management and inventory cost reduction are two main factors considered while promoting businesses. Use of CRM is found to be very beneficial to reduce the overall expenses. It can provide high profit and ensure high return on investment value. Assisting company owners in cross selling products is another main advantage of using CRM in businesses. Automated sales and marketing done by CRM is found to be very useful to increase sale productivity in company. Unlike CRM, ERP is renowned for improving communication.

Implementing the right ERP software can definitely enhance communication between workers. By using ERP, you can guarantee a smooth flow of information between intra-departments and inter departments. Generally, delay in receiving information is reported as a main hindrance to work. You can well overcome this reason by introducing ERP software to business fields. Also, use of right ERP software in companies can reduce the lead time of manufacturing products. If you wish to take wise decisions on right time, then never hesitate to choose ERP software. Choosing right ERP software can improve the overall performance of company. Unlike ERP, CRM can only look after the sales and marketing departments of company. This is a main difference between ERP and CRM. If both CRM and ERP are well integrated in company, you can definitely gain immense profit from businesses.

Read about ERP Implementation Best Practices. Also know ERP Implementation Risk Factors.

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