How do ERP and CRM systems compliment each other?

Most ERP systems include CRM as one module that can be purchased with the system. The CRM functionality can integrate into the organization's master data, which is obviously beneficial. To the extent that CRM becomes part of the core lifeblood of an organization, it pushes a change in thinking about customers. CRM data could also be used to help determine customer demand, and become an input to manufacturing planning, as another example of integration.

The integration of CRM and ERP provides benefits in both directions. For operations, having real-time sales pipeline provides tremendous efficienies into their processes and supply chain. For sales, they can now know all the details about their clients history and status. For marketing, they can develop initiatives based on product levels, resource availability, etc.
With the inegration of these two systems, many manual steps can be eliminated, thus increasing accuracy and decreasing costs.
Many companies have taken this integration a step further by providing this information through self-service portals to suppliers, partners, customers and employees.

CRM comprises sales, customer service and marketing. ERP is the accounting, inventory control and operations control. Integrating the two gives everyone a 360 degree view of the customer and organization. In order to properly serve the customer, the front end sales and marketing needs to know the status of customers' orders, available inventory, perhaps credit ratings. Operations should, though it often doesn't, pay attention to the sales pipeline. It won't be pretty if the shop foreman schedules all of his people's vacation just when the biggest order in the company's history is about to come through the funnel. Management can get a better picture of what's happening when sales forecasts feed information directly into the P&L and inventory. And from the data entry point of view, there are fewer mistakes, duplicate entries and out-of-date information when a customer's data is entered and updated in only one place.

CRM (Customer Relationship Management) is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time. This allows customer facing employees in such areas as sales, customer support, and marketing to make quick yet informed decisions on everything from cross-selling and upselling opportunities to target marketing strategies to competitive positioning tactics.

Please see the following link...its more elaborate.

http://erpfacts.com/difference-between-erp-and-crm.htm

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