Salesforce is not an Enterprise Resource Planning (ERP) system. It is the leading Customer Relationship Management (CRM) platform that is used in sales, service, and marketing automation. Salesforce offers cloud-based solutions to organizations and helps them handle customer relationships. A proper Salesforce Implementation ensures successful setup, customization, data migration, and automation so businesses can fully utilize the platform according to their requirements.
But ERP, called Enterprise Resource Planning, is integral in business operations. It gives the integrated solutions and handles the various business processes, like human resources, financials, supply chain and manufacturing. Many businesses search for clarity around the Salesforce ERP system concept, especially while comparing CRM and ERP platforms for comprehensive business operations.
Both terms Salesforce and ERP are different. But we can integrate the Salesforce and ERP to bring back office operations with front office sales, reduce manual data entry and errors and enhance visibility into customer data. Read this blog to know in detail if salesforce is an ERP system or not, and why and how to integrate both.
What is Salesforce?
Salesforce is the CRM system that gives you comprehensive solutions for service, sales, and marketing automation. Its wide range of Salesforce features, such as workflow automation, lead management, customer insights and analytics, helps businesses to enhance engagement and productivity. Its cloud-based architecture allows your business to access tools and data from anywhere and ensures scalability and flexibility.
What is ERP?
ERP is the enterprise resource planning system. It is software that organizations use to handle resources and day-to-day business activities. It improves the data flow between teams and optimizes the business process.
The ERP system functionalities are focused on improving the financial aspects of the business. it manage range of business process, like
- Accounting
- Compliance
- Procurement
- Project management
- Supply chain management
Is Salesforce an ERP System?
No, Salesforce is not an ERP system. It is the recognized CRM platform. Salesforce offers a range of tools to manage customer sales, relationships, marketing, and services, along with advanced customization through Salesforce Lightning Development to build dynamic and user-friendly applications.
It also enables businesses to track customer interactions, gain insights from behavior, and automate marketing campaigns through comprehensive CRM Services. Despite these comprehensive capabilities, Salesforce is not an ERP system because it does not offer core business process functionalities, such as supply chain management, procurement, and accounting.
Difference between Salesforce and ERP
As a CRM system, Salesforce focuses on a single aspect of business, primarily managing customer relationships and interactions. It helps businesses analyze data, track customer information, enhance engagement, and support custom App Development to build tailored solutions that improve user experience and operational efficiency.
But Salesforce and ERP overlap in some areas, but differ in functionalities. Here are the differences between both
- ERP focuses on core business areas, like supply chain, finance, manufacturing, etc., but Salesforce more focused on marketing, sales and customer service
- In an ERP system, you can store and manage a variety of internal data, including inventory levels, financial data, employee records, and production schedules. But in Salesforce, you can only store and manage the customer-related data.
In any ERP software comparison, Salesforce is the leading software system because it focuses on customer-centric processes instead of core operational management.
Organisations can integrate both Salesforce and ERP to handle the customer relationships and internal business process effectively. They can install both systems separately or integrate to each other, on the basis of their requirements.
Why Integrate Salesforce and ERP?
Salesforce ERP integration gives the consolidated views to your business of various functions, such as service and sales. ERP includes the functionalities like production, finances, supply chain, inventory management, etc. Combining the powerful Salesforce features with ERP capabilities will give a complete view of your business to manage customer details and financial performance in one place.
Here are more reasons why you should integrate it
-
Complete Visibility
Salesforce ERP integration gives you complete customer views to the next level and adds better understanding of how it impacts your business finances.
-
Improved Efficiency
You can automate the work with Salesforce ERP integration and enhance your productivity. It reduces manually data entry needs once ERP is integrated in your Salesforce software.
-
Improved Employee Collaboration
It empowers your employees to look at critical customer details, even if they do not work in your sales or service team. It gives you access to real-time data and supports you in making the right decisions.
-
Reduced Data Duplication
When you work with CRM and ERP systems separately, then the same customer data exists at both systems, which leads to inaccuracies and duplication. But with integration, you can reduce duplication and keep accurate records.
-
Speed Up Sales Records
After Salesforce and ERP integration, teams can move customers through the approval process quickly and give them access to real-time data. It speeds up the sales records.
-
Reduce costs for IT Support
The Salesforce ERP integration gives you a single connected system and reduces support costs. Now, you do not need to maintain both systems separately. You can also Hire Salesforce Developers to ensure smooth integration, proper customization, and ongoing technical support. It helps train your team to use a unified platform, reduce downtime, and improve overall system efficiency.
Best Practices for Salesforce and ERP Integration
To successfully integrate Salesforce features with ERP, you can follow given practices
-
Start with a Clear Plan
Make the proper integration plan that outlines your goals, timelines and available resources. Ensure to create a plan that also fits your business needs.
- Evaluate the key data process and flows that integrate between ERP and Salesforce
- Decide the outcomes and measurable success you want
- Mention the key resources, includes team experience and budget you want
-
Choose Right Integration Tools
You must select the right integration tool compatible with both platforms. Consider factors like scalability requirements, complexity, and customization levels to choose the right solution. It is also beneficial to Hire Salesforce Consultant to evaluate technical requirements and recommend the most suitable integration approach.
- Consider the long-term support and maintenance requirements
- Evaluate the different integration options, like point to point integration, pre-built connectors, API based integration and middleware solutions.
-
Focus on Data Quality
Then, check the data quality and consistency you required during integration. Ensure the proper data preparation and cleaning in both systems before starting integration.
- Determine and address data duplications, inconsistencies, and inaccuracies in systems, if any.
- Set clear data ownership, security measures and access control and protect your sensitive business information.
- Set the consistent mapping rules and data formats to maintain seamless data exchange between systems.
-
Involve Stakeholders
Make sure to involve all stakeholders in the integration process, including sales, IT teams, marketing, customer service departments and other departments. You should gather input from all and encourage collaboration to meet all requirements.
You have to communicate all the benefits and challenges of integration to stakeholders. Also, remember to give them training and support to make them familiar with Salesforce and ERP integration, increase the adoption rate and reduce disruptions.
-
Test Properly
Conducts the rigor testing at several stages of the integration process, including integration testing, unit testing, and user acceptance testing. It addresses and resolves the issues before final integration.
The proper test plan will cover all scenarios. It also involves the users in the testing process, and gives you feedback on how integration works. You must perform the document integration to see integration outcomes for future problems and address it earlier.
By following these practices, you can increase the chances of successful Salesforce and ERP integration. It maintains seamless data flow, improves operational efficiency, and enhances customer experience.
Examples of Salesforce and ERP Integration
Here are the examples of Salesforce and ERP integration, where it uses
-
Rootstock cloud ERP
Rootstock Cloud ERP is the famous ERP solution that integrates with Salesforce. It shares the same data model as CRM, and enables real time data synchronization and unified user experience.
-
FinancialForce
FinancialForce is another ETP integrated with the Salesforce platform. It offers billing, accounting, revenue recognition modules and professional services automation. It allows the business to handle financial operations along with CRM activities and give a complete view of financial performance.
-
SAP ERP Integration
SAP ERP is the recognized ERP system that integrates with Salesforce. It enables the business to sync sales orders, customer data, and inventory information. It ensures data consistency and increases operational efficiency.
Conclusion
Even though Salesforce is not a traditional ERP, it can integrate with ERP systems to offer significant benefits to businesses, supported by reliable Managed Services for continuous monitoring, support, and optimization. Businesses must evaluate their requirements to find the best integration tools, follow best practices, and implement them successfully.
Understanding Salesforce as a CRM, not a full Salesforce ERP system, helps businesses in smart decision-making. They can also integrate Salesforce with ERP to improve operational efficiency and growth. Enhancing data accuracy, streamlining operations, and improving customer service, it provides the solid foundation for businesses to succeed in a competitive landscape.
