Why CRM should not have Inventory Management

Many times customers for EnjayCRM ask us – why cant we integrate inventory into CRM system, after all CRM is about maintaining relationships of customers and inventory is sold to customers – so they are related.

But there is serious difference between both of these things, and there are two aspects to these differences

• ONE: Relationships and inventory are different aspects
  • CRM is used to manage flow of business process and information about customer activity. The basic philosophy of the whole system is to manage relationship between customer & our own team. Quality of the relationships is the key word.
  • Inventory is something very very different from above, and also it has hugely variable factors to it, which is extremely difficult to standardise. The basic philosophy of the inventory system is to manage material movement. Quantity of inventory is the main keyword.
• TWO: Inventory + CRM = ERP system (almost)
  • if at all we try to include inventory into CRM, it will become ERP system.
  • So infact customers are demanding ERP system @ the price of CRM.
  • Just consider following scenario:
    • We want to buy a car (four wheeler – which can cost Rs. 600,000) but we go to a motor cycle (two wheeler – which costs rs. 60,000) shop.
    • and tell the sales person, do one thing give me your two wheeler, and do some little modifications (and add some accessories as follows) – and you may charge few thousand rupees more . . .
      • add two extra wheels
      • add two luxury seats
      • Add Air conditioning.
      • add roof etc.
  • I know you are laughing – but don’t you find the similarity in these two scenarios.

What SME / SMB segments use:
Generally above segment prefers to use one accounting package (in India, its Tally) to manage finance, accounts and inventory.  and for managing Customers and flow of business – they want to buy a CRM.
Reason is simple – cost.

For more details – please read this article which explains this concept in very much detail.

This is the reason, we dont offer inventory in our CRM system, inventory cannot be an add-on, it has to be a base package (a basic functionality)