Visibility Blog

ERP v. CRM: What's the Difference and Do You Need Both?

Written by Katie Foley | May 2, 2025 3:00:00 PM

ERP v. CRM: What's the Difference and Do You Need Both?

By Katie Foley  

In the technology world, there is no shortage of acronyms... ERP, CRM, WMS, MRP, BI to name a few. One pain point for businesses can be choosing between an Enterprise Resource Planning Solution (ERP) or a Customer Relationship Management Solution (CRM). While they have some overlapping features, they also have some key differences. Today, we will define both ERP and CRM and explore how they are both different and similar. 

What is ERP?

ERP software is designed to oversee several business processes in one integrated application. The technology can store and analyze data from multiple areas of operation, like product development, manufacturing, accounting, sales and marketing in one central database. Core functionality of ERP typically includes:

  • Accounting and finance
  • Inventory and warehouse management 
  • Planning and scheduling 
  • Supply chain 
  • Procurement 
  • Project management 
  • Human resources and workforce management
  • Quality 
  • Bill of Materials management 
  • Business intelligence and reporting 

Many businesses use ERP systems to proactively identify and address potential issues. ERP software makes it easier for a business to comply with regulatory standards and automate several core business operations. The technology can also analyze and interpret data so employees can understand the company's performance on key metrics. 

What is CRM?

A CRM software can organize, track, and nurture your company's leads and customers. Core CRM functionality typically includes: 

  • Contact and lead management
  • Sales pipeline tracking
  • Marketing automation 
  • Customer service and support 
  • Customer analytics 

Employees can store detailed information and record every interaction they've had with a customer in the CRM database. CRM software should help streamline the entire sales process by automating certain tasks and making it easier for your sales team to convert potential leads into loyal customers. Certain types of CRM software allow you to have a visual overview of the entire funnel and measure the company's sales progress.  

Key Differences

Below is a Venn diagram illustrating the core differences between ERP and CRM systems. ERP is designed to centralize and streamline internal business processes such as finance, inventory, and supply chain management. In contrast, CRM focuses on automating external-facing processes, including sales, marketing, and customer service interactions.

Whether your business needs ERP, CRM, or both depends on factors like your industry, company size, organizational structure, and growth goals. However, many businesses find that implementing both systems provides a more comprehensive solution—optimizing operations from both an internal and customer-facing perspective.

Conclusion   

While ERP helps streamline operations and ensure internal efficiency, CRM focuses on nurturing leads and maintaining strong customer relationships. Visibility ERP brings you the best of both worlds. While our platform is built around a robust ERP foundation, it also includes powerful CRM-like features to support your customer-facing needs. These functions include contact management module to keep track of leads and opportunities, a customer server portal where current customers can get real time insight into their accounts, and a customer service module to track service calls. 

If your business is at a crossroads, trying to choose between investing in ERP or CRM, please reach out to the Visibility team to learn about powerful ERP solution.