What is an ERP System?
An Enterprise Resource Planning (ERP) system is software that helps businesses manage and integrate various core processes like finance, supply chain, human resources, etc., onto a single platform. ERP systems create a centralized database where different departments can access and share real-time information, leading to better efficiency and decision-making.
Key points
- ERP systems simplify business operations. ERP software reduces manual work and improves decision-making with real-time data by integrating finance, inventory, HR, and other core processes into one platform.
- ERP and CRM serve different purposes but complement each other. ERP manages internal business operations, and CRM is designed to improve customer relationships. Many businesses use both systems together for a more efficient workflow.
What are the benefits of an Enterprise Resource Planning System?
An ERP system helps businesses operate at a higher level. Some of the benefits are:
- Efficiency – Automates repetitive tasks, reduces errors, and saves time.
- Data Insights – Provides real-time reports and analytics for better decision-making.
- Scalability – Adapts to business growth by supporting new functions and users.
- Cost Savings – Reduces operational costs by eliminating inefficiencies and duplicate processes.
- Regulatory Compliance – Helps businesses comply with industry regulations through built-in reporting and tracking features.
An ERP for a manufacturing company can track raw materials, manage production schedules, and handle invoices in one system rather than using separate software for each function.
ERP vs CRM
While ERP and CRM (Customer Relationship Management) systems both help businesses manage operations, they serve different purposes:
| Feature | ERP (Enterprise Resource Planning) | CRM (Customer Relationship Management) |
|---|---|---|
| Purpose | Manages internal business processes | Manages customer interactions and relationships |
| Focus Areas | Finance, inventory, supply chain, HR, operations | Sales, marketing, customer service |
| Data Type | Transactional and operational data | Customer-centric data |
| Example Use Case | A company uses an ERP to track inventory levels across warehouses | A business uses a CRM to manage leads and customer communication |
ERP manages business operations, while CRM focuses on customer relationships. It’s not uncommon for businesses to integrate both systems for a seamless workflow.
An ERP system helps integrate and automate the day-to-day operations of a company. While ERP and CRM systems serve different purposes, they often work together by specializing in specific workflows that help to improve the company as a whole. When choosing an ERP, businesses should consider their size, industry, and operational needs. There are many different systems available to choose from.
ERP & CRM System comparison chart (A-Z)
Below is a short list of popular ERP, CRM, and accounting software made to help businesses simplify their operations.
| Software | ERP or CRM | Key Features | Best For |
|---|---|---|---|
| Acumatica | ERP | Cloud-based financials, CRM, and project management | Growing businesses |
| Accounting Seed | Accounting ERP | Built on Salesforce, financial management, automation | Small to mid-sized businesses |
| BlackLine | Accounting Software | Financial close automation, compliance tracking | Large enterprises |
| Close CRM | CRM | Built for inside sales teams, pipeline tracking | Sales-driven businesses |
| Creatio CRM | CRM | Low-code CRM, sales, and marketing automation | Mid-market businesses |
| Deltek | ERP | Project-based ERP, government contracting | Government & professional services |
| Epicor | ERP | Manufacturing, distribution, retail, and automotive | Mid-size businesses |
| Exact ERP | ERP | Financials, payroll, supply chain | Small to mid-sized businesses |
| Freshsales (Freshworks) | CRM | AI-powered insights, customer engagement tools | Small businesses |
| FreeAgent | Accounting Software | Invoicing, bank reconciliation, expense tracking | Freelancers & small businesses |
| HubSpot | CRM | Sales automation, marketing tools, reporting | Small to mid-size businesses |
| IFS | ERP | Asset management, field service, supply chain | Engineering, aerospace, defense |
| Infor CloudSuite | ERP | Industry-specific ERP solutions | Manufacturing, healthcare, retail |
| Intuit QuickBooks Online | Accounting | Cloud accounting, tax preparation, payroll | Small businesses |
| Keap (Infusionsoft) | CRM | Marketing & sales automation, lead nurturing | Small businesses & solopreneurs |
| Microsoft Dynamics 365 | ERP & CRM | Finance, sales, customer service, AI-driven insights | Mid to large businesses |
| Multiview ERP | ERP | Enterprise accounting, business intelligence | Mid to large enterprises |
| NetSuite | ERP | Cloud-based ERP, accounting, inventory, e-commerce | Mid to large businesses |
| Nimble CRM | CRM | Relationship management, social media integration | Small businesses & startups |
| Odoo | ERP & CRM | Open-source ERP, customizable modules | Small businesses & startups |
| Oracle ERP Cloud | ERP | Finance, procurement, supply chain | Large enterprises |
| Pipedrive | CRM | Deal tracking, automation, pipeline management | Sales teams & SMBs |
| Plex | ERP | Smart manufacturing, production tracking | Manufacturing companies |
| Priority ERP | ERP | Supply chain, finance, project management | Manufacturing & wholesale |
| QuickBooks Enterprise | Accounting | Advanced accounting, payroll, inventory | Small businesses |
| Ramco ERP | ERP | AI-powered ERP, HR, logistics | Global enterprises |
| Sage 50 | Accounting Software | Small business accounting, inventory management | Small businesses |
| Sage 100 | ERP | Financial management, distribution, manufacturing | Mid-sized businesses |
| Sage Intacct | ERP | Cloud accounting, financial management | Small to mid-size businesses |
| Salesforce | CRM | Sales, marketing automation, customer service | Customer-focused businesses |
| SAP Business One | ERP | ERP for small to mid-size businesses | Growing companies |
| SAP S/4HANA | ERP | Finance, supply chain, AI-driven analytics | Large enterprises |
| SugarCRM | CRM | AI-powered automation, customer analytics | Enterprise sales teams |
| SYSPRO | ERP | Manufacturing & distribution-focused ERP | Industrial businesses |
| Tally ERP | ERP | Accounting, GST compliance, payroll | Small to mid-size businesses |
| Unit4 | ERP | Service-oriented ERP, finance, HR | Non-profits, public sector |
| Workday | ERP | HR, payroll, workforce planning, financials | HR & finance-focused companies |
| Xero | Accounting Software | Cloud-based accounting, invoicing, expense tracking | Small businesses & freelancers |
| Zoho Books | Accounting Software | Cloud-based bookkeeping, invoicing, expense tracking | Small businesses |
| Zoho CRM | CRM | Lead tracking, automation, omnichannel engagement | Budget-conscious businesses |
| Zoho ERP | ERP | Cloud ERP, financials, project management | Small to mid-sized businesses |
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