11 Sep Difference Between CRM and SCM
While many organizations and companies tend to use them together, there are distinct and subtle differences between Customer Relationship Management (CRM) and Supply Chain Management (SCM). CRM is primarily used by the sales and marketing departments of various organizations, while SCM is used by procurement, production as well as the distribution departments. What makes them similar is that this suite of software allows companies or organizations to track information that is related to their business and use this information to make more informed and better decisions.
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In a nutshell, the main and the most evident difference between CRM and SCM is that Customer Relationship Management (CRM) tracks the client and prospects who are willing to purchase any kind of service or product from the organization while Supply Chain Management (SCM) tracks products and information that is related to internal companies processes.
Customer Relationship Management (CRM)
The CRM software has been designed to move the sales process along and to make sure that the customers are happy and to keep them happy. All departments can use the same database to record their interactions with the customer and thus eliminate duplicate efforts. It can also record interactions via email processes, telephone, and even social media. Advanced CRM software can also predict what clients are likely to buy based on their past history or behavior with the companies products and services.
The marketing department can use the CRM software in order to track and analyze marketing campaigns as well as to measure the returns on investments by looking at how many people became customers from each and every campaign that was conducted. The Sales department can use the CRM software to track their interactions with customers as well as prospects by seeing where they were contacted, what they have purchased and what they are inclined to purchase in the near future. Customer Service departments can use the CRM to record the interactions that they have with the clients, such as the problems that they had with their products and services. CRMs help organizations to maintain customer relations better and to pitch their products and services to the customers better
Supply Chain Management (SCM)
SCM software is designed to track and execute the company processes, that includes design, procurement, manufacturing production, distribution, sales as well as the order fulfillment method. The result is that it can reduce company costs as well as the risks in things like having too much or too little inventory. Advanced SCM software can help predict problems with the supply chain before they are bound to happen before.
SCM software can be used across most of the company departments, from accounting to customer service, to manufacturing and shipping. Suppose, for example, sales tend to ramp up at the end of the year. SCM software can prompt you to order new inventory so that the inventory arrives at the company before you run low on stock or even order it for you automatically. It will then tell you where are your orders in shipment when they will arrive at the warehouse, when they are in production, when they are shipped, and when it will arrive at the customer’s location.
CRM VS SCM Examples
A Company that has many amounts of customers or have a long sales cycle that includes many prospects will likely to want and use CRM software. A company that has a strong focus on faster delivery times or that sources components or parts from multiple suppliers would want to use SCM software. Often companies have the requirements of both, but this does not always happen. Candidates for customer relationship management examples include e-commerce businesses, retailers, business-to-business and manufacturers
A services company that has a lot of clients would be much more likely to need a good CRM system, but without suppliers or products to track, it does not require a CRM software. On the other hand, small car manufacturers who design and develop parts for car manufacturers may have little need for CRM software but if it sources steel, plastic from several other suppliers and would need to track its shipments in real-time, SCM software would be very valuable.
Despite the difference between CRM and SCM software systems, any company or organization that wishes to track its products and wants to increase its sales revenue will be most likely to be able to use both. For these companies, it is essential to integrate both systems and can be used to ensure inventory levels are sufficient, for example, while customers can be rest assured to be getting their products quickly.
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