ERP vs CRM

Your ERP Application acts as a single and multi-functional solution. It supports different business activities, including Customer Relationship Management. The CRM module is included with most ERPs. However, it may be unavailable if your company has chosen not to opt for it (for example -due to a tight budget) during the billing and payment terms.

Yes, an ERP can replace the CRM. This is because it encompasses all the functionalities that are already included in your stand-alone CRM tool in addition to very highly specialized and customizable solutions that you may want to try out to nurture growth & promote efficiency. An ERP delivers a comprehensive 360-degree overview of your customer information. It lets you track order history & customer information, create sales prospects, and understand the effectiveness of your marketing campaigns.

Technically, it’s possible to use both ERP and CRM together. However, it can lead to multiple challenges given below:

• Separate Datasets: You will have two separate datasets for the same customer list. This can result in confusion, errors, and productivity loss.
• Additional Costs: Using both tools simultaneously can result in additional costs. Since ERP already has an in-house CRM, there is no need to purchase a separate CRM tool.
• Technical Complexities: It’s possible that your ERP and CRM store their data in two different formats. Integrating such huge data can be a challenging task.
• Employee Training: You will need to train your employees to handle both systems simultaneously, which can overburden your employees.
• Data Security: With two separate datasets, there is an increased risk of data breaches that can lead to severe financial losses, reputational damage, and regulatory penalties.

There are different advantages of ERP over CRM. Consider using an ERP if you want to make use of cutting-edge technology and benefit from centralization and standardization of the data, eliminate labor work, improve organizational productivity & regulatory compliance, and lower operational and administrative costs.

Even though the upfront ERP cost may appear to be higher, investing in ERP is a long-term investment that pays off in the near future. Nevertheless, there are better options such as Cloud ERP with no upfront costs.

• Manufacturers across the world use Manufacturing ERP Software to gain visibility into the manufacturing processes and make timely & data-driven decisions.

• Pharmaceutical companies use Pharma ERP Software to enhance regulatory compliance, supply chain, and accuracy in day-to-day operations.

• Chemical manufacturers use ERP for Chemical Industry to maintain high-quality standards, maintain safety, and adhere to strict regulatory practices.

• Food companies use the ERP for Food Industry to manage recipes, manage supplier performance, and quickly fulfill customer orders.

• Furniture manufacturers use the ERP for Furniture Manufacturing to track customer orders and build a robust system of supply chain.

As we’ve seen in the difference between ERP and CRM, CRM software enables businesses to benefit from improved efficiency in the sales, marketing, and customer support operations. Use the CRM if you want to enhance marketing efficiency, track the performance of your marketing campaigns, automatically generate Invoices and quotations using an Invoice Management System, and optimize the sales lifecycle.

Another reason why some companies choose a CRM despite the tremendous benefits of ERP is that it saves costs. The ERP implementation is often costly, due to higher upfront costs. The CRM software, on the other hand, is priced cheaper due to the absence of various features such as production, inventory, warehouse, supply chain, and financial management.

Best ERP Software in India is costlier than CRMs because of the large feature set it offers. Typically, ERPs cost between $100,000 to $700,000 for medium-sized businesses, whereas CRM costs between $10 to $300 per user charged monthly. The actual product prices may vary from product to product, and modules selected.

Sage X3 is a popular example of ERP. It is an all-encompassing solution that comes with a robust range of capabilities and industry-specific featureset to gain agility and improve competitiveness. Businesses across different industries and sizes use it to tackle modern-day business challenges, cut costs, and improve efficiency.

Sage CRM software is a popular example of CRM. It provides accurate project overviews, business profitability analysis, expense & time tracking, and lead sourcing & generation capabilities to convert your potential leads into actual sales.