When you’re considering the installation of software to complete vital business processes, two of the most common acronyms you’ll encounter are ERP and MRP. MRP stands for material requirements planning, a manufacturing-related software system that dictates production and purchasing schedules based on a bill of materials. This is the term used for the collection of data that specifies what materials are needed for production, how much of those materials to order, and when to acquire them. ERP, on the other hand, stands for enterprise resource planning, and it is a software platform that covers a wide range of business applications—manufacturing-related or otherwise.
Both ERP and MRP are varieties of software. Both are also widely used in industries that involve manufacturing processes, in addition to having the capacity to assist in core processes like production scheduling and inventory management. But with only one letter separating these two in a software catalog, what are the best ways to tell them apart?
This article will briefly discuss the importance of an ERP system versus an MRP system, how to distinguish between them, and ultimately, how to decide which one of these your business needs more.
MRP versus ERP: Four Defining Differences
In general, there are four main differences between MRP and ERP. What follows is a short breakdown for each one.
Choosing the Right Software for Your Company
Making the right choice between an ERP and an MRP will depend on your company’s current situation. You have to consider your organization’s budget, size, and industry, along with the scope of business processes you’ll need help with managing. The bigger your company has grown, the more necessary it may be to get an integrated platform. Luckily, ERPs come as all-in-one packages or custom suites of applications and you might even get great software deals by doing your research.
Both ERP and MRP can help you execute core business processes to make your company more accurate and efficient at your work. It is only a matter of choosing which of the two will serve your business better.