ERP and CRM, the terms – and the tools! – are gaining in popularity in the context of the digitalization of companies, and remote working induced by the health crisis further reinforces their legitimacy. Yet confusion remains when it comes to understanding the difference to compare their respective uses… ERP or CRM, which software to choose for your company? Answers.
ERP and CRM: definitions and uses
Before identifying the difference between ERP and CRM, a reminder of the similarities between these two digital tools.
- ERP and CRM are software, installed on site (On Premise solution) or hosted directly in the Cloud (SaaS mode).
- ERP and CRM make it possible to centralize and process digital data on a single platform.
- ERP and CRM are equipped with process automation functions and business intelligence (BI) functionalities to improve performance in managing the company
The principle is similar, but the applications differ: while ERP addresses the needs of all company departments, CRM specializes in customer relations.
ERP, a global solution for centralized management
ERP, for Enterprise Resource Planning, is software that includes several management modules, within the same application, to cover the business needs of the company. Of course, the extent of the needs covered by the tool varies from one ERP to another. It is accepted that, at a minimum, the software serves 2 main functions in the company – finance/accounting and commercial management.
Depending on the type of ERP, other modules can be added to these two basic modules:
- A warehouse management module (WMS)
- Management of points of sale (connected checkouts)
- Quality management
- Management modules for “administrative” aspects, such as production management and human resources
Production
the tool intelligently plans the production chain to ensure the consistency of sales flows. Anticipation of needs, based on an automated analysis of sales data reported by the sales department, makes it possible to react immediately to fluctuations. At stake: maximizing revenue, while optimizing costs. The key indicators provided by the ERP help in decision-making: the department in charge has a reliable view of the efficiency and cost of its processes, it easily identifies weak points and areas for improvement.
Accounting
the ERP centralizes and stores all the accounting data in a secure manner. On this basis, the tool makes it possible to automate the accounting of the company, to save time but also to reduce the risk of error at the time of entry. The reports generated by the software offer a clear view of the financial situation, to guide the strategy over time.
Human ressources
The software simplifies and accelerates the management of human resources. Based on production data, the tool develops and adapts schedules in real time. From a purely administrative point of view, the ERP also manages payroll and leave, in accordance with the legal provisions in force. Human resources are indeed confronted with the evolution of the regulations – as well as the personal conveniences of the employees – and the software makes it possible to ensure compliance.
The ERP centralizes the management modules of the company’s various departments: each continues to work independently, but relies on a single solution. Information thus circulates fluidly, the modules communicate with each other to cross-reference useful data and allow teams to collaborate – even remotely.
The CRM to manage the customer relationship
CRM, for Customer Relationship Management, makes it possible to take advantage of digital opportunities to improve customer relationship management.
- Process automation functions – prospecting, promotion, etc. – save time and increase reliability.
- BI functionalities make it possible to increase performance – predictive analysis, data cross-referencing, etc.
- The platform centralizes and stores customer data and traces the history of contacts. The configuration of access rights makes it possible to share the data with the people who need it.
Illustration: the CRM offers a customer segmentation feature, based on automated filters based on targeted criteria – geographical area for example. The tool allows the massive sending of a newsletter to a specific segment, in just a few clicks.
The CRM is intended for the marketing team and/or the sales department. But overall, the success of the company requires decompartmentalising the functions: marketing, production, human resources… the data and actions of each department serve the company’s business challenges on a global scale. This is why ERP and CRM must be considered in a complementary way.
ERP & CRM: complementary solutions
- A company can completely equip itself with an ERP without a CRM, and conversely with a CRM without an ERP.
- When the company chooses to acquire the 2 tools, it is important to check the software compatibility, to be able to exploit cross-data reliably in real time.
The choice between (i) only 1 of the 2 tools (ERP or CRM) and (ii) 2 complementary tools (ERP and CRM) depends on the needs of the company and its scope in the first place, and its budget in the second place. Ideally, at the time of digitization, the company releases the necessary budget to take advantage of the opportunities for increased performance offered by the use of the 2 solutions.
Illustration: the marketing department has access to stock data recorded in the ERP, it relies on this data to send a commercial offer to a target clientele via the CRM.
To simplify your procedures and reduce your costs, Archipelia offers an all-in-one solution. ERP and CRM: these key tools for managing your growth project are hosted on a single platform. Commercial management, supply chain, production, marketing, accounting… you use all the useful ERP and CRM functionalities to improve performance and reduce your costs.
ERP & CRM: complementary solutions
- A company can completely equip itself with an ERP without a CRM, and conversely with a CRM without an ERP.
- When the company chooses to acquire the 2 tools, it is important to check the software compatibility, to be able to exploit cross-data reliably in real time.
- A company can completely equip itself with an ERP without a CRM, and conversely with a CRM without an ERP.
- When the company chooses to acquire the 2 tools, it is important to check the software compatibility, to be able to exploit cross-data reliably in real time.