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ERP vs MRP – what’s the difference?

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Are you familiar with the terms ERP and MRP? If you’re a growing company, then it’s not only important to recognise what these business acronyms mean but also the difference between them. Understanding how these resources work and influence your working practices can improve your business and propel your success forward, setting you distinctly apart from your competitors.

Whether you’re currently working with an MRP or an ERP, businesses like yours should also contemplate the importance of SCM or Supply Chain Management Software. By using SCM software, your business can benefit in numerous ways, including a more effective supply chain and a better supply chain strategy.

Now, let’s explore the difference between MRP and ERP…

MRP: Material Requirements Planning.

An MRP is a simple yet highly effective tool for manufacturers to manage their businesses. This tool gives users the ability and insight to calculate the materials and components they need to produce and manufacture their products. An MRP gives users an insight into material requirements, and even schedules deliveries to coincide with their inventory needs. This straightforward software can provide a clear overlook of a company’s material requirements.

ERP: Enterprise Resource Planning.

ERP is MRP and more – it provides a bigger and more inclusive overlook of the entire manufacturing process. Not only do you get the features of an MRP, but also sales and customer relationship management, HR resources, quotes, estimates and so much more. All available in one simple software application.

So, what’s the difference between an ERP and an MRP?

When you use an MRP, you have better control of your inventory requirements and you’ll have the ability to plan ahead and meet the requirements of your production line on time and in the correct quantities. Although incredibly useful within the industry, MRPs are often considered one dimensional when compared with the practicality of an ERP system.

With an Enterprise Resource Planning application, users are given a complete overlook of their business requirements. With features that help them streamline the procurement process and applications that help businesses meet the demands of both their clients and inventories. With an ERP, users can enjoy all the features and practicalities of an MRP, but with additional features that allow them to control and monitor their business from one simple software platform.

ERPs go far beyond the capabilities of standard MRP software, with features designed to improve your inventory handling, order processing, as well as quotes and estimations of orders and potential vendors. Customer relationship management tools give businesses a head start in maintaining those crucial connections, and with accounting capabilities and even HR resources, it’s easy to see why more businesses are turning away from traditional MRP to an ERP application.

And finally, what can I expect from an ERP?

Adopting an ERP platform means giving your company the edge, helping you grow your business from one simple platform. With increased efficiency, accurate inventory planning, stronger customer connections and even reduced operational costs at your fingertips you can expect an ERP application to push your business success forward.

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