What is an ERP and how is it different from a CRM?
Nova “If every department keeps its own spreadsheet with the same data, you do not need another spreadsheet: you need a system that connects them.”
Quick answer
An ERP (Enterprise Resource Planning) is a system that integrates a company’s internal operations: inventory, purchasing, sales, finance and staff in a single database. A CRM focuses on customer relationships and the sales process. Many companies start with a CRM or an inventory system and grow into an ERP.
Key facts
| ERP | Integrates operations: inventory, purchasing, sales, finance and staff |
|---|---|
| CRM | Manages customers, leads and the sales process |
| Sign you need an ERP | The same data is entered several times across departments |
| Rollout | Module by module, starting with the most critical process |
| At CA | Custom systems from $750 USD |
What modules does an ERP have?
Each company uses the ones it needs. The most common are:
- Inventory and warehouses.
- Purchasing and suppliers.
- Sales, orders and invoicing.
- Finance, receivables and payables.
- Staff and payroll.
ERP or CRM: which do you need first?
If your problem is selling and following up with customers, start with a CRM. If the problem is operations (inventory that never matches, messy purchasing, reports that take days), you need an ERP, or at least its most urgent module.
Do your operations depend on spreadsheets nobody can reconcile?
See details and pricingOff-the-shelf or custom ERP?
An off-the-shelf ERP comes with standard processes and is licensed per seat. A custom one adapts to how you work and grows module by module. Custom makes sense when your operation is specific or you would pay for many features you never use.
How do you roll it out without stopping operations?
In stages. Start with the module that hurts most, migrate that process’s data and train the team before moving on. The business never depends on a big-bang switch overnight.
Frequently asked questions
Is an ERP only for large companies?
No. A small business can start with one or two modules, such as inventory and sales, and grow over time.
Does an ERP include a CRM?
Some include a customer module, but it is usually more basic than a dedicated CRM. Both can be integrated.
How much does a custom system cost?
At CA, a custom web system starts at $750 USD. Each tier’s price is listed on the product page.