Salesforce is the world’s most popular customer relationship management (CRM) software, serving 150,000+ companies globally. Enterprise resource planning (ERP) systems like SAP, Oracle NetSuite and Microsoft Dynamics handle vital back-office business processes for companies large and small.
But is Salesforce an ERP system? And if not, how feasible and beneficial is integrating Salesforce CRM and ERP platforms? The exact answer to whether Salesforce is an ERP: No, Salesforce is primarily a CRM (Customer Relationship Management) system.
This guide examines the key differences between CRM and ERP software systems and discusses popular strategies and use cases for connecting Salesforce with ERP technologies to unify sales, service, marketing and back-office workflows under one roof. Let’s dive in.
Key Takeaways
- While Salesforce excels as the #1 CRM software for sales, marketing, service and all customer interactions, it is not a full end-to-end ERP system.
- ERP software suites like SAP, Oracle, Microsoft and more focus on automating vital back-office functions from finance to inventory management.
- Together, integrated CRM and ERP solutions can unify data, workflows and insights across customer and operational realms.
- Salesforce offers native tools like Salesforce Billing that provide lightweight ERP capabilities to complement its CRM platform for simpler needs.
- Salesforce enables straightforward integration of its CRM with major ERPs like SAP and Oracle NetSuite through pre-built connectors between the major platforms.
Salesforce: The #1 Global Cloud CRM Platform
Salesforce originated cloud CRM software and remains the undisputed market leader after 20+ years of relentless innovation.
At its core, Salesforce specializes in customer relationship management tools to help all sizes of companies sell smarter and deliver connected customer experiences.
Salesforce enables businesses to efficiently and effectively manage key activities across:
Sales force automation – Tools like opportunity and lead tracking, sales forecasting, document creation and management, sales workflows, commissions and more to empower sales teams.
Marketing automation – Managing campaigns, workflows, personalization, customer journeys, email marketing, attribution, analytics and more to align sales and marketing.
Customer service and support – Ticketing systems, knowledge bases, self-service portals, social media engagement, call centers, field service and more to drive customer satisfaction.
Commerce and community engagement – Facilitating ecommerce, self-service experiences, customer communities and engagement across channels.
And much more, with new innovations constantly added via the Salesforce platform.
As a pure cloud software-as-a-service (SaaS) CRM, Salesforce delivers an intuitive user interface, flexibility, scalability and agility to evolve with companies as they grow. It excels at managing customer-facing sales, marketing, service and support interactions end-to-end. But CRM is not the same as ERP.
How Does It Differ from CRM?
ERP (Enterprise Resource Planning) systems are comprehensive software solutions designed to manage various business processes within an organization. They typically cover areas like supply chain, human resources, financials, and inventory management.
On the other hand, CRM (Customer Relationship Management) platforms, like Salesforce, focus primarily on managing customer relationships, sales, and marketing activities.
Difference Between ERP and CRM:
| Feature | ERP | CRM |
|---|---|---|
| Primary Function | Business process management | Customer relationship management |
| Key Modules | Supply chain, financials, HR | Sales, marketing, customer service |
| Core Benefit | Operational efficiency | Enhanced customer interactions |
ERP: Mission-Critical Back-Office Business System
Enterprise resource planning (ERP) software enables core back-office business process management across functions like:
Finance and accounting – General ledger, AR/AP, financial reporting, compliance, planning and analysis.
HR and payroll – Talent management, training, payroll, 401K/benefits administration, compliance.
Supply chain and manufacturing – Inventory control, supply chain management, production planning, scheduling, quality control.
Warehouse management – Tracking stock levels, inventory optimization, order fulfillment.
And often numerous other operational processes depending on the industry.
Top ERP platforms include market leaders SAP, Oracle, Microsoft Dynamics, Infor and IFS servicing global enterprises. Popular middle-market solutions include Sage Intacct, Acumatica, Epicor, SYSPRO and more. And specialty SaaS ERPs focus on niches like manufacturing, distribution and other verticals.
The core purpose of ERP software is to integrate and optimize complex workflow automation, analytics, visibility, control and compliance across an organization’s sprawling back-office business activities. ERP aims to help companies efficiently coordinate enterprise-level planning, management and execution.
But while managing internal back-office processes, ERP systems may lack the sophisticated CRM capabilities that many companies need on the sales, marketing and customer service fronts. This is where taking an integrated approach between ERP and CRM can create a best-of-breed “technology stack” unifying end-to-end systems.
Is Salesforce an ERP? How Salesforce Compares to ERP Systems
Salesforce on its own is not a complete end-to-end ERP system – it simply doesn’t provide the deep back-office functionality that defines ERP suites for financials, HR, supply chain, manufacturing and more.
Some key differences between Salesforce CRM and ERP systems include:
Salesforce:
- As the pure cloud CRM pioneer and leader, Salesforce is delivered exclusively as a highly flexible, multi-tenant SaaS (software-as-a-service) platform. This enables rapid deployment, easy scalability and speed of upgrades.
- Salesforce offers highly customizable and configurable industry-specific CRM solutions out-of-the-box rather than complex custom coding. It can adapt to many unique business needs.
- The Salesforce platform facilitates straightforward integration and connecting APIs to external apps, data sources and systems. New tools and capabilities can be added seamlessly.
- Salesforce specializes in sales, marketing, service and support workflows rather than operational back-office processes. The focus is perfecting customer interactions end-to-end.
ERP Systems:
- ERP solutions come in a mix of legacy on-premise models requiring companies to host their own hardware and software, as well as newer cloud delivery options depending on the vendor.
- ERPs emphasize core back-office workflows for finance, HR, supply chain, manufacturing and more. They excel at transaction processing, analysis and regulatory compliance.
- Heavily customized ERP deployments are common to tailor rigid workflows, which can require expensive and lengthy implementation projects involving custom code.
- Connecting add-on solutions like CRM and integrating external data sources may involve complexity depending on the capabilities and age of the ERP platform.
In essence, Salesforce provides enterprise-grade CRM capabilities that empower marketing, sales and customer engagement workflows optimized for the cloud age. ERP systems enable back-office business process automation tailored to complex organizational needs and regulatory demands.
Together they can provide an end-to-end connected workflow automation “nirvana” unifying all business functions under one roof.
The Best ERPs for Salesforce
There are a number of different ERP systems that can be integrated with Salesforce. Some of the most popular ERP systems for Salesforce include:
- NetSuite
- SAP
- Oracle ERP Cloud
- Microsoft Dynamics 365
- Workday
Salesforce Integrating CRM and ERP Systems
To unify customer experience (CRM) and operational back-office (ERP) capabilities in one platform, Integration with Salesforce offers several options to its leading CRM with major ERP solutions:
Salesforce and SAP integration – Bidirectional connectors optimize workflows between Salesforce CRM and SAP ERP. Pre-built integrations automate data flows and processes.
Salesforce and Oracle NetSuite integration – Oracle NetSuite ERP capabilities can be delivered natively within Salesforce through added apps/functionality.
Salesforce and Microsoft Dynamics integration – Dynamics 365 and Salesforce synchronize contacts, calendars, data and workflows through built-in integration.
The benefit of leveraging pre-configured integrations between major platforms like Salesforce CRM and ERP titans SAP, Oracle NetSuite and Microsoft Dynamics is avoiding the need for extensive custom coding and simplifying connected workflows. Shared data, activity history and business processes unite sales, service, marketing and back-office realms into a single contextual view.
For simpler needs, Salesforce also offers various native tools that provide lightweight ERP capabilities such as Salesforce Billing to complement the CRM platform and reduce need for complex integrations.
Benefits of Integrating Salesforce CRM and ERP Systems
When successfully unified, some of the many benefits that seamlessly integrating Salesforce CRM workflows with ERP data and processes can provide include:
Shared customer insights – Sales, support, operations and finance share a common 360 view of customer data, history and financials powering coordinated personalized engagement.
Streamlined order processing – Sales orders flow directly into ERP order execution without duplication across disconnected systems.
Real-time inventory synchronization – Inventory levels, warehousing data and order statuses align across ERP and CRM in real-time.
Connected financial workflows – Sales forecasts, order fulfillment, collection activities and revenue reporting workflows become linked across systems.
Unified metrics and KPIs – Single consistent versions of common data and reporting across departments powering aligned cross-functional KPIs.
Single source of truth – One version of shared information, metrics and insights across all users reduces misalignment.
By connecting CRM and ERP ecosystems, companies can eliminate disjointed silos and drive more contextual, efficient execution across sales, service, marketing, operations, finance and all customer-impacting functions.
Strategies and Options for Salesforce and ERP Integration
For companies running Salesforce CRM that also have a need for ERP functionality, here are some popular strategies and options to consider:
Leverage native ERP tools – For simpler needs, native Salesforce tools like Salesforce Billing added on provide lightweight ERP capabilities that may suffice without complex integration.
Utilize pre-built connectors – Salesforce offers a variety of pre-built, two-way connectors and integration tools to quickly connect major ERP platforms like SAP, Oracle NetSuite, Microsoft Dynamics and Workday to its CRM.
Middleware – Robust middleware can deeply unite CRM and ERP data and workflows between any major platforms in a customizable way, but requires greater effort.
Legacy ERP modernization – For outdated ERPs, strategies like gradually phasing out legacy on-premises ERPs via new cloud ERP or taking a hybrid approach can work.
The best approach depends on your stack, use case needs and priorities balancing IT cost, complexity and functionality across systems.
How to Choose the Right ERP System for Your Business
When choosing an ERP system for your business, it is important to consider your specific needs and requirements. Some of the factors to consider include:
The size of your business: ERP systems can be expensive and complex, so it is important to choose a system that is right for the size of your business.
Your industry: There are ERP systems that are specifically designed for different industries.
Your budget: ERP systems can range in price from tens of thousands of dollars to millions of dollars. It is important to set a budget before you start shopping for an ERP system.
The “Salesforce ERP” Myth Busted
It’s important to reiterate: Salesforce is not an ERP in the traditional sense. While it can be extended and integrated to offer ERP-like functionalities, its primary focus remains on customer relationship management. Businesses must understand this distinction to make informed software choices.
Getting Salesforce CRM and your existing ERP solution working harmoniously together provides that coveted “single source of truth” for your business spanning sales, service, operations and beyond.
Salesforce vs. Other ERP Giants: A Comparison
When comparing Salesforce to ERP giants like SAP or Oracle, the differences become clear. Salesforce excels in customer management, while ERP systems like SAP offer a comprehensive suite of business process management tools.
| Feature | Salesforce | SAP |
|---|---|---|
| Primary Purpose | CRM | ERP |
| Core Modules | Sales, Marketing, Customer Service | Supply Chain, HR, Financials |
| Best For | Businesses focused on customer engagement | Enterprises needing holistic business process manageme |
FAQs
Why Isn’t Salesforce Typically Classified as an ERP?
Simply put, Salesforce’s core competency lies in CRM, not ERP. While it offers extensive functionalities, especially when integrated with other platforms, its primary purpose is not to manage diverse business processes like an ERP. Salesforce is primarily a CRM, but when integrated with platforms like Oracle or SAP, it can mimic some ERP functions.
Is Salesforce an ERP, or is it primarily a CRM platform?
Salesforce is primarily known as a CRM platform. However, with the right integrations, such as the Salesforce ERP integration, it can interface with ERP systems.
What are the benefits of integrating Salesforce with ERP systems?
Benefits of Salesforce ERP integration include real-time data sharing, streamlined operations, and the ability to run both CRM and ERP functionalities on the Salesforce cloud platform.
How do Salesforce and ERP systems work together?
With Salesforce and ERP systems integrated, businesses can have a unified view of their sales, service, and business processes. This integration of Salesforce allows for better data consistency and operational efficiency.
Can Salesforce operate like an ERP with solutions like Rootstock Cloud ERP on Salesforce?
Yes, with solutions like Rootstock Cloud ERP built natively on the Salesforce platform, Salesforce can offer ERP functionalities, providing a flexible and scalable ERP solution.
What’s the difference between ERP and CRM when considering platforms like Salesforce?
While an ERP helps in managing and streamlining business processes, a CRM platform, like Salesforce, focuses on customer relationship management. However, with Salesforce ERP systems and the right integration strategy, both can coexist on the Salesforce cloud platform.
How does Salesforce integration with already deployed ERP software work?
Salesforce integration with already deployed software or ERP is achieved through APIs and middleware solutions. Systems that integrate with Salesforce can share real-time data, enhancing business decision-making.
Are there any notable ERP solutions that work well with Salesforce?
Yes, solutions like Rootstock Cloud ERP on Salesforce and Microsoft Dynamics ERP have shown to integrate well with Salesforce, offering businesses a comprehensive software solution.
Conclusion
While not a full ERP system, Salesforce still offers numerous options like native billing or pre-configured SAP and Oracle NetSuite integrations to attain unified back-office capabilities beyond its best-of-breed cloud CRM functionality.
Approaching integration with a strategy tailored to your specific stack, cost considerations and use cases helps balance the complexity to value. But thoughtfully connecting Salesforce CRM and ERP workflows provides organizations with complete real-time visibility across customer experience and business operations.
Breaking down data and functionality silos results in more contextual automated processes. And single authoritative versions of information and insights empower employees across functions to execute smarter, faster and more collaboratively fulfilling your digital transformation vision.
