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Though ERP and CRM are different systems, the idea of having them implemented is the same. Both these systems help in enhanced productivity, automation and revenue generation of the business. To many, both ERP and CRM may look similar, but there are some factors that distinguish each apart from the other. Before we get into the similarities or differences, let’s have a basic understanding of each.

What is ERP?

Enterprise Resource Management (ERP), in simple terms, is a tool that helps in improving the efficiency of the business. An ERP software handles the business processes including the inventory management, HR management, distribution, sales and finance. While some ERP systems offer a readymade software that can be implemented to the system, many of the software providers offer customization of the software according to the customer’s specific requirements.

What is CRM?

CRM stands for Customer Relationship Management. The CRM software aims at ensuring customer satisfaction. The modules and functionalities incorporated into a CRM software are to maintain a better relationship of the company with its existing as well as potential clients. Thus, the processes within the system deal with customer interaction, engagement and customer service.

What Are Major Differences Between ERP and CRM?

The major difference between the ERP and CRM lies in their approaches and strategies to gain more profits for the business. While ERP focuses on the back-office activities, a CRM software ensures that the front-office activities are streamlined and beneficial for the business.

The tasks handled by ERP include:

  • Supply chain management
  • Automation of employee life-cycle
  • Payroll management
  • Human resource management
  • Assessment of business needs
  • Standardization of business processes
  • Facilitation of project planning
  • Management of financial data

The tasks handled by CRM include:

  • Automation of customer service processes
  • Management of sales
  • Creation of data reports
  • Analysis of best-selling products
  • Prioritization of leads
  • Management of inventory based on sales data
  • Management of business contacts
  • Sharing of customer data internally

As you now know the basic differences between an ERP system and a CRM software, you can decide what your company really needs based on your requirements. Whether you’re looking for ERP or CRM, we’re here to take it forward. Visit us for more details.