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Distinctions Between Customer Relationship Management and Enterprise Resource Planning

Customer relationship management (CRM) and enterprise resource planning (ERP) both offer ways to automate processes and run your business more efficiently, but the systems were originally designed to streamline different functions.

CRM solutions are used to manage contacts, accounts, opportunities, activities, marketing, customer support, and many other sales and service-related processes. CRM calls for knowledge of business needs and customer demands.

ERP is a system of managing operations and business functions, including product planning, purchasing, inventory, customer service, order tracking, and other back-end business processes. ERP requires knowledge of financial and manufacturing processes.

However, the lines between CRM and ERP are beginning to blur as ERP vendors incorporate CRM functions into their software and CRM vendors add ERP capabilities to their offerings. Both industries are working to develop all-in-one applications to streamline internal operations and customer activities.