ERP or CRM? CRM or ERP? It is not uncommon for this doubt to arise when the need to improve process management arises and a tool needs to be acquired.
However, you need to understand what exactly your business needs. Improve customer relationships? Automate administrative processes?
The best-case scenario is, of course, to make these two things assertive. You may already know what CRM is. But, and ERP, what is it about?
The truth is that many managers are still unaware of the true meaning and use of an ERP and how it can contribute to improving business results.
Regardless of what your company chooses, it is necessary to make the administration of any business more and more efficient. And adopting the so-called digital transformation is the way out of this.
After all, it is only through technology that we can have accurate and organized information in a single tool.
It is through it that we can make processes more assertive, automated, scale sales and, consequently, grow.
In this article, find out what ERP is, what it is for and if it makes sense to have it in your company. We’ll also talk about the difference to CRM and which one is best for your type of business. Whether one, the other, or both.
Come on? Good reading?
So, tell me: what is ERP?
ERP stands for Enterprise Resource Planning, or, in a free translation from English, integrated management system. An example of an ERP system is Superlógica.
It is a technology that helps managers to optimize processes and integrate activities from different sectors within the same company.
Its objective is to connect information flows between company sectors so that strategic information can be in constant connection – without having to be physically in the same place.
And this is essential to help managers make decisions. Among its possible applications for management, such as monitoring accounts payable and receivable, sales and purchase orders, we can mention some modules that ERP helps in managing.
- financial ;
- project management;
- people management;
- between others.
I understood! And what is ERP for companies?
Let’s think of a practical example, in one of the modules that the system optimizes processes such as the purchasing sector.
After a purchase is made by the company – no matter what or the value -, the financial sector automatically receives this information and already knows how to proceed.
The result of this? Optimization of working time.
After all, with an automated process, resources and time are saved, in addition to not having to use paper, printers or even internal displacement in the company to know what the sectors are doing.
However, there are other beneficial factors in implementing an ERP in companies, such as transparency, security, and various ways to assist decision-making.
Below, we’ve broken down some of the main benefit points of implementing this system.
As we said, the integration between sectors is one of the main factors for cost reduction. As it is a visual tool, the manager is also able to follow the flow of money and know how much there is in cash to provide segments for the necessary operations.
Thanks to automated processes, manual and repetitive work is left out. Such as reports, retrieval of relevant information, data import, among others.
As a result, teams are able to focus on higher-value activities, optimizing other actions needed for each sector.
With more accurate data analysis, the risk of error is greatly reduced by adopting an ERP.
After all, the sectors are in constant communication and, with management processes within the system, information is registered and management is facilitated.
Managers can systematically monitor the practices adopted by all sectors and ensure the strategic alignment of all involved.
After all, the focus needs to be on increasingly agile and optimized results and processes. If necessary, holding feedback meetings and applying the agile methodology can enhance the use of ERP.
Another benefit is the monitoring of the sales team’s performance, monitoring the output of products or services sold, being able to check the stock level in real-time.
This helps decision-making, knowing if you need to invest in an item or discontinue it from your company.
Or if it is necessary to call the supplier to replenish the stock.
ERP or CRM? CRM or ERP? How to know how and which one to hire?
Understanding that each business has its peculiarities, needs and way of working, we have separated 5 factors that you cannot ignore.
They help you make an assertive decision when hiring both a CRM and an ERP. Take into account how many items you find necessary.
However, you cannot ignore:
1 – Features
The first point to be analyzed, and perhaps the most important is the functionality sought. It’s no use the price being good if it doesn’t meet 100% of the pain your company has.
But, for this, you need to have mapped everything that needs to be corrected within your company.
This way, point by point, you can explain what you need and understand whether or not a particular tool suits you.
2 – Cost-effective
Costs cannot be ignored and every manager is well aware of their challenges in keeping finances in order on a day-to-day basis. Even more when it comes to a tool from outside Brazil.
Are you ready to be subject to exchange rate fluctuations? Consider the size of your business as well as your need and compare prices and features offered.
If it’s urgent and if the tool helps you, then it’s cost-effective. If the price is low but there are few features – which would change your current way of working very little – what sense is there in hiring?
3 – Reputation and evaluation of the company
Talk to who is already a customer. See reviews on sites specializing in B2B platforms, such as the B2B Stack . Surround yourself with care wherever you can.
After all, you will be making an important decision for your business. So digging deep to discover the company’s valuation and reputation never hurts.
4 – Support
It is an important point and cannot be ignored. Problems happen and the company you hired needs to provide the necessary support.
Therefore, one of the points to consider is having help in Portuguese and in a simple and direct way. After all, anyone with a problem is in a hurry – and nothing is more valuable than your business right now.
5 – Customer Success
This factor, in reality, you will only know if it is well done if it works after you hire it. But, try to talk to who is already a client of the company you want to hire.
Does it sell and never speaks to the person who bought the solution sold again? It is critical to understand having companies concerned about customer success, in ensuring that you are having the best possible experience with the system.
Okay. But which one makes the most business sense?
The truth is, only you can answer that question. Everything will depend on the current needs that your business has.
If your company improves lead generation, customer acquisition, sales cycle, among others, then a sales system like CRM makes perfect sense.
It is through it that it will be possible to organize the entire commercial process and also the sales funnel, pre-sales, marketing, customer success, among others.
It will make sales work much more agile, assertive and will give the sales team much greater empowerment.
After all, he will be able to generate value for the customer and this will positively impact the CAC and LTV of his business. In addition, all purchase journey information for any customer is registered within the CRM.
The data is owned by the company – which reduces the risk of losing any business if the seller leaves the company.
However, if you understand that your sales process is working as it is today, you may want to focus on other areas.
And then an ERP makes more sense. Or, if you understand that your company is small, or your business is still in a structuring phase, it may be that neither one nor the other is needed right now.
It is necessary, first, to structure the processes in all areas. You will notice that by doing this you will be able to work better.
And, from there, to grow, it will need software that will help in this mission. The ideal, however, for companies that already have well-defined processes, is to have both integrated.
Only in this way is it possible to have control not only of the sales routine but also of any internal process.
More than that, any decision-making, whatever the sector, can be done in a much safer and more assertive way.
CRM PipeRun has ERP integration
CRM PipeRun has native integration with Superlógica, one of the most complete ERPs on the market. However, if you want to integrate the ERP you already have with our CRM software, you can do this through a URL.
This way, you have full control over your sales and also over other processes. All automated.
As soon as the sale is made, the integration with the ERP automatically generates everything you need to guarantee the delivery of what was purchased and, also, internally control the corresponding administrative processes.
It’s much easier to grow and be more and more a reference in the area in which you work in this way, isn’t it?
So, how can we help you?
If you’re in doubt about the usefulness of a CRM in your business, talk to a consultant today and they can help you.
Enjoy and read two articles that will help you better understand your context and also your needs.
The first talks about the importance of good sales management in companies to be able to control the commercial process.
The second covers important sales metrics that you cannot neglect in your business.