Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) are both systems designed to automate and streamline processes in a business. While CRM is a system for managing the front-end of the business, ERP is involved in managing the back-end. The relationship between ERP and CRM is that these are two systems that need to work in conjunction with each other in order for the front and back office of the business to work effectively and efficiently.
Customer relationship management is the process of how a business manages its customer contacts. As the name implies, CRM focuses on how, when, where, and why the business interacts with current and potential customers. It includes the management of marketing activities to attract new customers and to communicate with existing customers. Customer accounts, managing customer activities, and providing customer support are the other primary areas covered under this process.
Enterprise resource planning is a system that manages how the business is managed and operated, so it deals with the business functions of the company. Some of the processes that fall under ERP are customer service, managing inventory, planning for the production of the goods and services that the business sells, tracking orders, and purchasing supplies for the business to operate. ERP focuses on automating the processes of the project management, distribution, financial, sales, and manufacturing areas of small- to medium-sized businesses.
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