Blog Post

ERP vs MRP: What's the Difference?

Your manufacturing business has a lot of things to keep track of – inventory tracking, supply chain management, and human resources, just to name a few. ERP and MRP systems are great solutions to keep everything organized. However, they can be difficult to differentiate given they are both commonly used in the manufacturing industry. In this blog, we will go over the key differences between ERP software and MRP software.

Highly Integrated Software vs Standalone Software

One of the biggest differences between ERP systems and MRP systems is how they operate and who operates them. ERP software is fully integrated into your business and is utilized outside of the aerospace & defense manufacturing industry. Implementing an ERP system can be a complex task.  However, working with an industry partner will help with the process. They’ll be there for your company for long-term maintenance and assistance.

On the other hand, managing manufacturing resources and employees in that department are the typical uses for MRP software. While it is highly useful for that specific purpose, it can be difficult to integrate into your other administrative applications. In fact, you may even find you require an ERP software solution for other needs.

ERP Does what MRP can do, and More

In many cases, MRP modules can be a part of an industry ERP solution. MRPs date back to the 60s and 70s, and eventually evolved into MRP II, which started to integrate accounting practices.

Eventually, the need for an all-encompassing software to handle asset tracking, customer relationship management, and even timecards for employees became too great. ERP Software creates a catch-all for these items and more. Today, ERP software can do everything MRP software does, and much more.

ERP Software Helps with Certifications and Governmental Requirements

Because MRP software deals in manufacturing processes specifically, it helps streamline cost and maintain DCAA compliance. This is especially important when bidding for government defense contracts.

However, there is more to compliance than DCAA. ITAR compliance and AS9100 audits require strict documentation of everything your business does. Integrated ERP systems simplify the process of providing data. An ERP system like Epicor will make maintaining compliance simple.

Cre8tive Technology and Design will work with your business to build an ERP system to fit your needs. Contact one of our experts today to see the solution we have for you.