CRM, ERP, and SCM: A Comparison

CRM (Customer Relationship Management) is software that helps companies manage interactions with customers and clients. It typically includes tools for sales, marketing, and customer service.

ERP (Enterprise Resource Planning) is software that helps companies manage various business functions, such as finance, accounting, manufacturing, and supply chain management. The main goal is to improve and streamline internal business processes, which typically requires reengineering of current business processes.

SCM (Supply Chain Management) is software that helps companies manage the flow of goods and services, from sourcing raw materials to delivering finished products to customers. It typically includes tools for logistics, inventory management, and procurement.

In summary, CRM is focused on managing customer interactions, ERP is focused on managing business functions, and SCM is focused on managing the flow of goods and services. While these systems may overlap in functionality, they are typically used for different purposes and by different departments within a company.

SCM Models

Push-based Model: Production master schedules are based on forecasts or best guesses of demand for products, and products are “pushed” to customers.

Pull-based Model: Actual customer orders or purchases trigger events in the supply chain.