Introduction: CRM (Customer Relationship Management) and ERP (Enterprise Resource

Planning) software are powerful tools for a business or enterprise to use. CRM handles the sales,
marketing, and customer service information. It handles activities such as recording customer
interactions, sales tracking, pipeline management, prospecting, and creating/evaluating
marketing campaigns. On the other hand, ERP handles the back-end processes and internal
information. It takes care of tasks like order placement, tracking, billing, shipping, accounting,
and supply chain details.

Although they are unique in what they do, there is crossover, and it is worth it to spend the extra
money to get them fully integrated. Here are 6 reasons why:

1. Centralization of Accounts and Contacts

Both CRM and ERP software systems store detailed information on customers (including contact
information, order history, and billing/shipping details).

By integrating the two solutions, you can see all the details for one account in one location,
rather than having to look at the same account in the two different solutions. This will also save
time on data entry. Instead of updating accounts/contacts in both systems, you will only have to
do so in one centralized location.

2. Reduction of Data Duplication

If you’ve ever used an automated solution such as ERP or CRM before, you know that duplicate
data can be a major headache for software users. While enterprise resource planning software is
focused on billing-related and shipping data, customer relationship management software holds
customer-centric information and sales metrics.

With an integrated approach, duplicate data entry is a thing of the past, since both systems work
through the same rules and structure.

3. Stronger Visibility and Forecasting

In a major B2B enterprise, sales reps need to be able to access data within the enterprise resource
planning solution. Sales reps often need to check in on the status of an order, make changes and
check in on the progress of orders and accounts at any time, and more.

In terms of forecasting, the integrated ERP and CRM system will naturally provide better data
since it’s real-time and always as accurate as possible.

4. Cross-Departmental Collaboration

A major benefit of both enterprise resource planning and customer relationship management
software is the ability to work cross-departmentally, without department siloes.
In a siloed business approach, departments are completely distinct from one another,
discouraging collaboration, making data accessibility a challenge, and data duplication common.
A cross-departmental approach ensures real-time data is always being utilized and departments
are working together to accomplish the same goals.

5. Easier Quoting and Ordering

A sales rep will be able to take a proposal from CRM and turn it directly into an order in the ERP
system without having to change systems and re-enter the data in multiple locations. This will
save time and improve company efficiency. Additionally, the sales reps would also have
improved visibility into the status/progress of an order for customer updates as well as easy
access to make changes if needed.

6. Correct Quoting and Inventory

A sales rep, with the integration, can look at the ERP to view the company’s inventory and
current costs to get the most accurate quote. They can factor in things like promotional and
discount pricing from the CRM. From there, they use this information to make a far more
accurate quote and ultimately, a faster timeline from quote to the finished product.
Integration of ERP and CRM Applications:

There are two key challenges that force business owners to check how they run their businesses
in the fast-paced and global outsourcing environment. The first one is outdated IT systems that
can’t cope with complex global relationships. Systems were made for the old paradigm without
the ability to get updated information. The second challenge is that IT solutions fail to deal with
customer relationship management.

Usually, companies first buy enterprise resource planning (ERP) for strong business foundation
and then go for customer relationship management (CRM) software separately. CRM handles
front-end information involving sales tracking, recording customer interactions, prospecting,
pipeline management, and developing/assessing marketing campaigns. Enterprise resource
planning deals with key backend operations such as purchase history, accounting information,
billing and shipping details, supply chain management details and financial data.

However, if CRM and ERP systems are not integrated, businesses need to worry about holding
them synchronized. All changes have to be integrated into each system.

Moreover, it is a manual process with a need to wait to see updates that means slower processes
and a risk of mistakes. On the other side, integrating ERP and CRM them into one software will
speed up business processes and improve productivity.

Statistics shows that ERP systems enhance order-to-shipment times by 43% while ensuring an
inventory of more than 95%. They help to improve client satisfaction and the results is increased
with a unified system.

Implementation of CRM functionality to the ERP solution will help both systems save all the
changes in one database and make them visible instantly. It helps to automate and streamline
interaction with the customers. Moreover, it delivers needed transparency and visibility into all
stages of the business.

Experts say that mutual integrations of CRM and ERP helps to deliver a 360-degree view of the
clients. It helps to cover various issues from accounting to finance. Such integration helps to see
what areas of business need to be improved, and consistent data brings you greater reporting and
analytics. Managers may faster notice changes, know customers preferences and level of loyalty.

With successful integration, employees from different departments may cooperate better as well.
Managers have quicker access to the key company’s information and track business processes.
Without it, team members can become less productive.

Both CRM and ERP systems save valuable account and contact information. They complement
each other: ERP deals with warehouse, billing address and shipping while CRM pays attention to
sales and customer support goals.

The ERP and CRM implementation eliminates the need to duplicate information. Moreover, it
brings greater structure, quote management, and inventory.

With CRM and ERP implementation, companies may turn proposal generation into the orders by
applying one system. It allows providing data management faster and refining company
efficiency. Besides, the sales managers receive better visibility and easier access to updated
information.

Single platform for CRM and ERP helps to decrease IT costs and expenses related to the
training.
Benefits:
Both these systems (ERP & CRM) deal with contacts, orders and companies. Let’s consider their
differences to understand the benefits:

1. The main difference is users of these systems: sales and customer support managers use
CRM, ERP users pay attention to logistics and the processes. They are internal and
supplier-facing.
2. CRM is aimed to track interaction with the customers while ERP has to deal with
software to handle business processes.
3. Customer relationship management is a front-office system that needs to standardize
cooperation with the clients and simplify them, handle sales pipeline, and develop
dashboards and meaningful reports. Besides, it can track resources such as time and
efforts, speed up sales processes, automate customer service, identify the bestselling
services and products, manage inventory, supervise business contacts, share customer
profiles with other team members, etc.

ERP systems strengthen the data delivered by different departments and handle and automate
back-office business assignments and activities involving accounting and finances, purchase, HR
and payroll, manufacturing, supply chain management, distribution process management,
services knowledge base, and project management. Also, ERP systems may decrease extra tasks,
reduce expenses, standardize key business processes and speed up them.

1. CRM pays attention to increasing sales, but ERP is focused on decreasing costs.
The entire supply chain network has to involve both ERP and CRM management systems.

These are the objectives of enterprise resource planning:

1. Access to needed data.