Over the last decade, business management solutions such as CRM and SCM have been loved by business people for their ability to assist business processes.
Even though they both function as business management solutions, the two have significant differences. Then, what is the difference between CRM and SCM?
To find out, let’s see an explanation of the differences between CRM and SCM in the following article!
Customer Relationship Management (CRM)
CRM is a system used to manage a business’s entire customer relationship, including sales and marketing. All departments can use the same database to record their interactions with customers and eliminate duplicate efforts.
Thus, businesses can use CRM to improve customer relationships and drive sales growth.
Supply Chain Management (SCM)
SCM is a tool used to track and execute company processes, including design, procurement, manufacturing, production, distribution, sales, and order fulfillment.
The goal of using SCM is to reduce the company’s costs and risks in such things as having too much or too little inventory.
Meanwhile, SCM software can be used in most departments, from accounting and customer service to manufacturing and shipping.
What’s the difference between CRM and SCM?
Both CRM and SCM can help businesses facilitate business management processes, so they can run effectively and efficiently. However, what is the difference between CRM and SCM?
Here are some of the differences between CRM and SCM that businesses need to know before deciding to use them.
1. Customer Management Vs Product Management
CRM can assist businesses in implementing marketing strategies to acquire and maintain customer relationships.
Not only that, businesses can also integrate CRM applications with other business systems such as Omnichannel in one integrated platform.
Thus, businesses can optimally and efficiently manage customer relationships across different channels simultaneously.
If CRM functions for customer management, then this is different from SCM which functions for product management, such as managing the delivery of products and services.
The SCM platform will collect supply chain data and use it for sales forecasts and track product inventory and sales locations in real-time.
This data-driven approach to SCM helps organizations easily manage inventory checks, logistics information, delivery dates, and product supply control.
2. Driving Sales Vs Completing Sales
If CRM applications can help businesses to drive new sales, then SCM will focus on improving the sales process.
In this case, SCM platforms can accelerate product delivery times, overcome bottlenecks, and automate supply chain processes.
3. Revenue Generation Vs Cost Simplification
In general, companies will use CRM to create more sales and revenue opportunities.
However, this is different from SCM which helps companies simplify supply chains, thereby reducing costs and delivering products on time.
That’s the difference between CRM and SCM that you need to know. To determine which platform is most appropriate, you need to first understand the type and structure of your company. Does your company need CRM, SCM, or even both?
Companies with competitive markets will generally need a CRM platform to maintain multiple customer relationships and expand their market reach. So, the business will be able to get the maximum return on investment (ROI).
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