Difference between CRM and ERP

Many times customers for Enjay CRM ask us – why can’t we integrate inventory into CRM system, after all CRM is about maintaining relationships of customers and inventory is sold to customers – so they are related. Actually they are not. People don’t understand Difference between CRM and ERP.
CRM is a major  part of ERP system but not entire ERP. ERP has lots of functions like Inventory, Finance, Accounts, HR and CRM. Where as CRM is focused to handle CRM only, its design is meant for managing relations and not inventory or finance.  We have one more article which provides ERP solution for SMEs click here to know more.

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 Basic Difference between CRM and ERP

  • One: Relationships and inventory are different aspects
    • CRM is used to manage flow of business process and information about customer activity. The basic philosophy of the whole system is to manage relationship between customer & our own team. Quality of the relationships is the key word.
    • Inventory is something very very different from above, and also it has hugely variable factors to it, which is extremely difficult to standardise. The basic philosophy of the inventory system is to manage material movement. Quantity of inventory is the main keyword.
  • Two: Inventory + CRM = ERP system (almost)
    • if at all we try to include inventory into CRM, it will become ERP system.
    • So in fact customers are demanding ERP system @ the price of CRM.
    • Just consider following scenario:
      • We want to buy a car (four wheeler – which can cost Rs. 600,000) but we go to a motor cycle (two wheeler – which costs rs. 60,000) shop.
      • and tell the salesperson, do one thing give me your two wheeler, and do some little modifications (and add some accessories as follows) – and you may charge few thousand rupees more . . .- — Add two extra wheels
        – Add two luxury seats
        – Add Air conditioning.
        – Add roof etc.
    • I know you are laughing – but don’t you find the similarity in these two scenarios.

What SME / SMB segments use:

Generally above segment prefers to use one accounting package (in India, its Tally) to manage finance, accounts and inventory.  and for managing Customers and flow of business – they want to buy a CRM. Reason is simple – cost. Now we have added the bridge between Sugar CRM and Tally, here is our connector for the same.