Expert knowledge for digital decisions

Where Does CRM End and Where Does ERP Begin?

Short answer

CRM accompanies the process up to the order: contacts, opportunities, quotes. ERP takes over afterwards: order processing, inventory, production, invoicing, accounting. The order is the interface. Those who want to force both into one system end up with a system that poorly represents one side.

The Division

Area	System
Contacts and Prospects	CRM
Sales Opportunities, Quotes	CRM
Conversation History, Tasks	CRM
Order	Interface
Inventory, Procurement	ERP
Production, Shipping	ERP
Invoicing, Accounting	ERP
Customer Service After Purchase	Depending on Structure, Both

Designing the Interface Cleanly

When an opportunity turns into an order, the data moves to ERP. Status and invoicing information come back so that sales can provide information without having to check ERP.

Important: One system manages each type of data. 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 usually represent sales only roughly. CRM systems with order management fail at inventory and accounting. Both directions end with one side that is not usable.

When a Single System Makes Sense

In small businesses with simple processes and few users. There, the effort of two systems along with an interface weighs heavier than the loss of functionality.

Practical Note

The question "which system manages the customer master data?" should be answered before the first interface is built. Clarifying it afterwards is significantly more expensive.

Key facts

Interface: The Order
Most Important Rule: One system manages each type of data