Short answer
A CRM manages relationships with customers — contacts, deals, communication and sales. An ERP manages the company’s internal resources — order fulfilment, inventory, purchasing, production and finance. Simply put: a CRM helps you sell, an ERP helps you deliver and keep track. Many companies need both, connected together.
Comparison
| CRM | ERP | |
|---|---|---|
| Main focus | Customers and sales | Resources and operations |
| Typical users | Sales, customer service, marketing | Warehouse, purchasing, production, finance |
| Main data | Contacts, deals, communication | Orders, stock, costs, invoices |
| The question it answers | “Who are we selling to, and what?” | “How do we deliver it, and what does it cost?” |
Why they need to work together
A deal in the CRM becomes an order in the ERP. If the systems aren’t connected, employees retype data and the customer doesn’t get accurate information about the order status. That’s why CRM and ERP are connected with an integration or built as one custom system.
Which to choose first
- If the main problem is sales and customer communication — start with a CRM.
- If the main problem is order fulfilment, stock and costs — start with an ERP or one of its modules.