The terms ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) are often mixed up, although they solve different problems.

What a CRM is responsible for

A CRM works with the client and the sales process: where the lead came from, which stage it is at, who spoke to them, when the payment came in. The focus is the client.

What an ERP is responsible for

An ERP manages the company's internal resources: finance (revenue, costs, payroll), stock and inventory, staff and KPIs. The focus is the company itself.

A simple example

The sales team works with the client in the CRM — a lead arrives, negotiations happen, a contract is signed. Once it is signed, the goods have to leave the warehouse, appear in the financial report and count towards an employee's KPI — that is the ERP's job.

Which business needs which

  • If you only need order in the sales process (lead → client), a CRM is enough.
  • If stock, finance or multi-employee processes have become complex (retail, manufacturing, logistics), you will need an ERP.
  • If you need both, they are integrated: every sale in the CRM automatically affects stock and finance in the ERP.

How they work together

In practice ERP and CRM are often connected into one flow: the client pays in the CRM → the event is passed to the ERP → the item is written off stock and lands in the financial report. That is what business process automation means.

Frequently asked questions

  • Does a small business need an ERP? Usually not — a small team is well served by a CRM and simple reporting. An ERP makes sense for medium and large businesses with a warehouse or a large headcount.
  • Can it work with our existing accounting software? Yes — integration with systems already in use (accounting, warehouse software) is done through their API.

If you want to work out which solution fits your company, get in touch.