CRM and ERP integration: Why should you link the two systems?
The use of CRM and ERP has become standard for medium-sized and large companies. But why does it make sense to use both systems? How do they complement each other? And how can the two be combined? In this article, we provide you with answers and highlight important facts about the combination of CRM and ERP. Our experience from 35 years of CRM practice.
Table of contents
The benefits of an ERP system
The focus of ERP (Enterprise Resource Planning) systems is on the integrated management and optimization of operational processes. The central ERP platform, on which the various company areas such as finance, human resources, production, sales and logistics are linked, enables the optimaluse of resources, which leads to improved profitability. An ERP therefore serves as the basis for controlling and decision-making in your company.
Differences between CRM and ERP
The differences between CRM and ERP lie both in their objectives and in their functions. In contrast to ERP, where the view of customers is purely process-oriented, CRM systems focus on the management and optimization ofcustomer relationships. They support companies in collecting, analyzing and managing information on prospective and existing customers in order to strengthen customer loyalty and increase sales.
The purpose of CRM software
CRM software primarily supports your business areas by capturing customer communication and soft facts that cannot be captured with an ERP system. Here are the advantages for the 3 areas
- CRM for Service & IT
helps to optimize complaint management, among other things, by quickly and easily managing all types of requests, solutions and the associated correspondence - CRM in sales
provides an overview of customer histories, the current customer situation, sales potential and the targeted realization of sales opportunities at all times - CRM in marketing
supports the coordination of various campaigns and mailings, the transfer of leads to sales and the evaluation of customer feedback
From CRM to xRM
However, a CRM system is not limited to use in these three business areas: suppliers, partners, personnel or objects such as real estate or car parks can also be managed with a CRM. You can expand your CRM system to xRM. The meaning is already reflected in the name: the x in xRM stands for the English word "anything" and means "everything". This means that you can map supplier evaluations in xRM as well as application procedures.
Why CRM and ERP cannot replace each other
As already described, CRM software offers employees support in customer communication and processing. It provides direct access to customer and prospective customer data and thus ensures that employees can provide competent and needs-based advice. The CRM system also provides important key figures for managing the company that cannot be determined using an ERP system. These include, for example
- the sales forecast - based on the sales opportunities
- Service capacity utilization
- Information on customer requirements
- feedback on campaigns or mailings
- and much more
The ERP cannot provide this customer data - but it can provide important key figures on stock levels or for finance and accounting, which are not recorded with a CRM.
Synergies of the connection between CRM and ERP
If an ERP system is already in use, a CRM system should by no means be dispensed with. Linking the two systems brings considerable benefits, as your teams receive a more complete picture of their customers, as illustrated in these examples:
- Information from the ERP on payment behavior, dunning status, creditworthiness, delivery times or returns can be displayed in the customer file of the CRM software.
- When master data is created in the ERP system, it can be automatically synchronized with the CRM.
- Item master data, currency information, payment and delivery links from the ERP can be used by the sales department to create sales opportunities and quotations in the CRM.
- Orders from the CRM can be transferred to the ERP for logistics and invoicing.
- Information on the delivery status from the ERP can be made available to the sales department in the CRM.
Use potentials of linking CRM and ERP
You can count on these added values when integrating CRM and ERP:
- Business processes are streamlined and throughput times are shortened
- Coordination effort and points of friction between departments are minimized
- Extensive reporting functions in CRM can be combined with data from the ERP to gain new insights
- Cost savings are realized through efficient data management
- Customer loyalty is optimized through high-quality customer support and advice
- Increased revenue is achieved through follow-up orders
Connecting Gedys CRM and ERP
Gedys CRM supports integration with any ERP software such as Proalpha, SAP, Microsoft Dynamics NAV or Infor. The bidirectional interface offers the option of displaying any data from the ERP system in the CRM or automatically transferring data from the CRM to the ERP system.
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