ERP (Enterprise Resource Planning) and MRP (Material Requirements Planning) are both software systems used in manufacturing and supply chain management. MRP systems’ functionality is primarily focused on materials planning and procurement, whilst ERP functionality covers wider business processes within a company. While they share similarities and often work together, there are some key differences between the two…
ERP vs MRP Software Comparison
Scope and Functionality
MRP helps manufacturing businesses plan and control the flow of materials needed for production. MRP software calculates the quantity and timing of raw materials, components, and subassemblies needed to fulfil demands, considering factors such as lead time, order rules and stock levels. This allows businesses to optimise their stock levels, and minimise shortages and excess stock.
ERP, on the other hand, encompasses a broader range of functionalities. It integrates various business processes, such as accounting, finance, manufacturing, supply chain, procurement, project management and manufacturing. ERP software aims to provide a comprehensive view of the entire organisation with many systems in one place.
Business Processes
MRP systems focus on production planning, inventory control, and procurement processes. They generate purchase orders, track inventory levels, and create production schedules based on the demand forecast and bill of materials.
ERP systems cover a wider range of business processes. In addition to production planning and inventory control, they handle finance and accounting, sales and marketing and other functions. This has both its pros and its cons. Whilst it’s beneficial to have all business processes under one roof, it does mean there’s no flexibility for choosing specialised software for each process.
Scalability
MRP systems are typically suited for small to medium manufacturing businesses with a primary focus on materials planning and production scheduling.
ERP systems are designed to accommodate the needs of larger businesses. They offer scalability to support complex operations and growing organisations.
Introducing Our MRP Software
Here at CIM Software, we have developed MRP software for both Sage 50 Accounts and Sage 200 Professional. Our MRP reads through all of the demands on the demand schedule and then offsets available stock and replenishments against those demands to determine which cannot currently be satisfied.
It will then generate a list of rule-based recommendations to purchase components and manufacture sub-assemblies and/or finished goods to ensure all demands can be met. This means that your business can plan ahead and ensure that you meet all customer needs. To save rekeying data, recommendations can be actioned to create purchase and works orders too.
If you’d like a free demo of our MRP systems for Sage, fill out the form below and we’ll be in touch.
