Expert knowledge for digital decisions
Where does CRM end and where does ERP begin?
Short answer
The Division
| Area | System |
|---|---|
| Contacts and Prospects | CRM |
| Sales Opportunities, Quotes | CRM |
| Conversation History, Tasks | CRM |
| Order | Transition Point |
| Inventory, Procurement | ERP |
| Production, Shipping | ERP |
| Invoice, Accounting | ERP |
| Post-purchase Customer Service | depends on system setup |
Designing the Transition Point Cleanly
When an opportunity becomes an order, data migrates to ERP. Information such as status and invoice details return to CRM, enabling sales to provide updates without needing to check ERP.
Important: One system manages each data type. Customer master data should be maintained in one place and transferred to the other – otherwise they will diverge, and no one will know which address is correct.
Why a single system for everything rarely works
ERP systems with CRM modules typically only roughly model sales. CRM systems with order management fail at inventory and accounting. Both approaches end with a side that users do not want to use.
When a single system is still useful
For small businesses with simple processes and few users. There, the effort of maintaining two systems plus an interface outweighs the functional loss.
Practical Note
The question "which system manages customer master data?" should be answered before building the first interface. Resolving it afterwards is significantly more expensive.
Key facts
- Transition Point
- The Order
- Most Important Rule
- One system manages each data type
Sources
All external claims are backed by traceable sources.-
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Ouhud CRM Ouhud GmbH