Integrating operational areas with customer relationship data gives your company new insights and efficiencies.
Enterprise resource planning (ERP) and customer relationship management (CRM) solutions offer great tactical solutions to businesses. Taken together, however, ERP and CRM are more than the sum of the parts.
An integrated ERP and CRM solution allows for real-time, actionable business intelligence, giving executives insights they need to make critical decisions in the time of need. Integration breaks down organizational silos and encourages collaboration. Learn more below about the benefits of integrating these tools, industry-specific examples and best practices for combining your solutions.
Benefits of ERP and CRM together
While no two ERP or CRM solutions offer the same features, in general, the roles of each can be defined as follows:
- ERP: Back-end functions such as accounting, human resources, manufacturing and purchasing.
- CRM: Front-facing functions like sales, marketing, customer service.
ERPs are built to bring synergy to core functions, providing transparency, a single source of data and improved collaboration and efficiency. CRMs are focused on providing a complete view of customer and prospect integrations, including marketing pitches, outreach, conversations and customer help requests.
Both are designed to build synergy among important functional areas, with the intent that shared knowledge helps to boost operations and outreach. By combining capabilities, you’ll be able to deepen the interconnectedness of various parts of your business.
“The main arguments for the integration … focus on obtaining in real time a coherent view of customers – the possibility of continuous access to everything relating to customer data and information, which … is needed for its proper operation,” state the authors of a recent paper on ERP and CRM integration. “A consistent view of the customer allows employees to make the right and quick decisions.”
Here are a few of the most essential benefits of bringing ERP and CRM together:
Seamless data sharing
CRMs and ERPs have their own unique data collection, storage and formatting guidelines. The advantage of integrated systems is the ability to provide everyone with a unified, transparent and consistent set of information. When the two solutions are integrated, changes or alterations made in one system should be reflected simultaneously in the other.
As business needs change and new data, fields or calculations are needed, the connectivity allows for continued consistency. The system integration allows for new insights, needs and opportunities to be available to each operating unit.
Optimized resource management
Consider the opportunities with a clearer, automated flow of information from sales to production. Companies can gain advantages on production planning, warehouse space optimization, supply planning, materials purchasing and production order prioritization. This benefit helps companies with long sales and manufacturing cycles to plan better based on the status of customer commitments, allowing companies to reduce carried inventory and begin production soon after an order is confirmed.
Faster delivery cycles
Companies with a free flow of information can track and share information on customer details and orders, leading to more accurate and timely shipments, lower operating costs and improved customer satisfaction with on-time deliveries.
Improved product forecasting
Linking marketing initiatives and projections allows for faster and more accurate production forecasting. Operations teams will be able to plan more accurately and companies will not tie up cash by buying excess inventory.
Appropriate and accurate sales proposals
If your sales professionals can see a customer’s complete history – order history, current balance, payment pattern, credit limit and unpaid invoices – proposals will be more consistent and appropriate. Information that’s readily available helps sales managers to make informed decisions, such as asking for down payments or full payment up front.
Sales reps using an integrated solution also have access to the most recent, updated pricing information, including any promotions or discounts. They can also provide more accurate production and delivery dates by accessing production schedules, inventory levels and requisition schedules. If merchandise is out of stock, salespeople can relay that information to customers early on in the proposal process or provide precise projections on timing.
More sales opportunities
Giving salespeople better access to order histories, leads and customer service requests helps them to frame their pitches, giving them a much better likelihood of securing a call, an appointment or a deal. Knowing the frequency of reordering, for example, helps sales professionals reach out proactively to up-sell or cross-sell products or services. When equipment is reaching the end of its predicted lifespan, salespeople can suggest new models of an old product.
Better consistency and standards in customer engagement
With an integrated CRM and ERP solution, your employees will have complete and current information on customers. Whether it’s a sales call, a help request, a product question or a delivery inquiry, employees will understand better the complete relationship, sentiment and pain points. Complete and timely data, collected from both systems, helps employees understand and respond better to customers.
Responsive approval processes
Give your salespeople access to ERP information in real time and they can move contracts through the approval process faster. Same-day signing means faster contract approvals and reduces the time it takes for revenue to be recognized.
Prompt billing and payments
Document sharing lets businesses quickly turn accepted proposals into work orders that can be tracked throughout the enterprise without manual intervention. This process simplification carries over to the finance functions, allowing for faster creation and distribution of invoices, drawing from a single data source. Faster billing leads to faster payment turnarounds and better cash flow.
Combined systems allow for better and more automated reporting, visualizations and data analysis. Reports pull in data from both systems without the need for manual manipulations, conversions or adjustments.
Applying ERP and CRM data has powerful functional advantages in the food, chemical and cannabis industries.
ERP and CRM industry applications
ERP and CRM solutions need to be uniquely suited to the industry they’re serving. Businesses like food and beverage production, chemicals and cannabis have unique functions and needs for both systems separately and together.
Here is a look at how ERP and CRM integration gives companies in those industries the capabilities essential for success and competitive advantage.
Chemical companies need solutions that address complex functions, including:
- Formula and recipe management, measure conversions, shelf-life management, packaging and labeling
- Rapid batch scaling in different sizes and formulations
- Quality controls that can track – and report to customers and prospects – product quality, shelf life and expiration dates
- Process design improvements based on customer needs, historical trends, costs and operations
- Rigorous regulatory compliance mandates, including federal, international, state, local and industry standards
- Lifetime customer value measurements
- Worker safety
- Tracking products from warehouse arrival to manufacturing processes (including intermediary products) to finished goods
- Traceability forward and backward with ordering histories and delivery data
For process manufacturers, these systems allow for shared, real-time access to information that is valuable to the salesperson, marketing manager, warehouse chief, finance officer and executive.
Food and Beverage
Sound supply chain management is at the core of any successful food or beverage company. While these functions traditional reside within ERP solutions, a CRM integration provides even more opportunities for efficiency.
With tight margins, fierce competition and changing consumer tastes, efficiency is paramount. By integrating the customer relationship insights with operational details, food and beverage companies are able to leverage the three interconnected supply chain components – suppliers, stores/restaurants and customers.
Here are three benefits for food and beverage companies when their CRM and ERP solutions are integrated:
- Lower operational costs. CRM tools help provide insights and ordering patterns that can improve ordering and inventory management, resulting in lower storage and spoilage costs.
- Customer segmentation. Targeted sales by customer segments allow for optimized ordering based on demand, relevance and location. Segmentation also allows for better analysis of customer profitability, based on logistical and operational costs. Customer analysis helps finance, sales and operations teams to identify and distinguish between stable, regular business and variable or unpredictable customers.
- Seasonality. Identifying ordering patterns allows for sales and procurement employees to track, predict and anticipate seasonal variances in demand.
With cannabis and CBD companies emerging and growing as more states approve medicinal and recreational use, businesses in this fledgling industry are seeking solutions. There is a critical need to manage the operational and customer sides, not only for better efficiency and profitability, but also to meet the scrutiny of law enforcement and regulatory agencies at the state and local level.
Cannabis companies need to track and access industry-unique data, such as the costs of materials and energy, growth rates, potency levels and cross-strain breeding attempts.
Integrating this information with customer demand, buying patterns and demographic data helps cannabis companies provide products that are most in demand and most profitable. Pricing, resource allocation and purchasing all benefit from a blending of customer and production data.
How to combine
Combining these two complex business solutions to maximize the potential of an integrated approach is a complex undertaking. Whether buying new solutions or integrating new ones, careful planning needs to happen. Among the key steps are:
- Determining whether the integration is unidirectional or bidirectional
- Identifying data and modules to integrate
- Unifying headers, labels, tags and data formats
- Mapping data and interfaces
- Assessing existing and future reporting needs
- Focusing on user experience
- Training users
To manage the many complexities involved in developing a cogent integration strategy, companies turn to NexTec. Our integration specialists have extensive knowledge of the providers, solutions and features available and the expertise to deliver a seamless integration experience.
Take a free tour of Sage Enterprise Management to learn more about NexTec and ERP/CRM integration.