Understanding ERP vs MRP: What’s the Difference?

Your manufacturing business has a lot of things to keep track of. From inventory tracking and supply chain management to human resources, every manufacturer and machine shop has many moving parts.

Enterprise resource planning (ERP) and material requirements planning (MRP) software systems can both be great solutions to keep everything organized. However, it can be difficult to differentiate between them.

Both are commonly used in the manufacturing industry, and they share a few important qualities. However, they’re ultimately very distinct from each other.

Wondering about the difference between an ERP and MRP solution? In this blog, we will go over the key differences between ERP software and MRP software.

MRP System vs ERP System: Standalone Software vs Highly Integrated Software

One of the biggest and clearest differences between ERP systems and MRP systems is how they operate and who operates them.

ERP software is fully integrated into your business, and into the operations of every company that uses it. Additionally, ERP 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. You can’t address your full slate of business processes and the related need for oversight with only an MRP platform.

In fact, you may even find you require an ERP software solution for other needs. While things like production scheduling.

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. They eventually evolved into MRP II, which started to integrate accounting practices.

Eventually, the need for all-encompassing software to handle asset tracking, customer relationship management, and even timecards for employees became too great. It wasn’t enough for businesses to limit themselves to the shop floor — to focus only on needs like production planning.

ERP Software creates a catch-all for these items and more. It’s a solution for overseeing, managing, and optimizing the entirety of a business. From inventory control to human resources for office employees, ERP has it covered, as Epicor explains.

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 to streamline costs 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. Your company can ensure it aligns with DCAA and ITAR requirements and needs related to AS9100 audits. This is another example of the comprehensive nature of ERP.

ERP vs MRP: Differences Made Clearer

This guide should help you better understand the differences and similarities between ERP and MRP. In most cases, an ERP solution will deliver more functionality, insight, and opportunities for positive change.

Cre8tive Technology and Design will work with your business to build an ERP system to fit your needs. One of our experts will help you find the solution that best aligns with your operations.

Ready to make improvements across nearly all areas of operation? Contact us today!

Posted in ERP