The industrialized landscape has moved drastically day by day. Then 2 of the best software solutions have come into our mind. Therefore, these 2 are MRP and ERP considered the best technology solutions to improve your resources. However, there is the basic difference between MRP and ERP is their functioning. MRP is the material requirements planning software particularly helpful in the manufacturing industry. On the other hand, ERP is enterprise resource planning software that handles all your business operations like accounting, finance, supply chain, and planning seamlessly. So, in this blog, we are going to discuss the major differences between 2 terminologies.

What Is The Difference Between MRP and ERP?

Two commonly implemented systems are ERP and MRP. Firstly, you must know the MRP and ERP meaning. However, both are the preferable choice of manufacturers. Below you can distinguish the major differences between them.

What is MRP?

MRP stands for material requirements planning software solution that is specifically designed for the manufacturing industry. Furthermore, the main objective of this software is to measure the required production material. This act will permit manufacturers to evade productivity loss. However, the companies that are not manufacturing are also utilizing MRP for their production growth. Therefore, this software helps you in different scenarios. Firstly, manufacturers can forecast the product material and secondly maintain the inventory levels.

Also, Learn more about the best ERP Systems For Manufacturing

How it works?

MRP comes with the basic functionalities as follows:

• Inventory management
• Stock control
• Production scheduling
• Supply chain management

So, if you are using these functions properly, it will move towards improved productivity. Also, helps you to reduce the cost. Therefore, if data is entered perfectly, then you can effectively improve business operations. On the other hand, the entry of incorrect data may disrupt ordering and planning.

Features of MRP

Inventory Management

Manually counting inventory is a difficult task. So, when working with inventory management software it should be easy for you. Furthermore, it will count all your inventory without any error. MRPs can evaluate the production material.

Forecasting

You must develop a better budget option with the help of estimated tools. If you compare the budgets, you can manage the production and also avoid the obstacles as well.

Production Management

MRP can manage and schedule the production producing the optimal quality materials. Therefore, this will allow the companies to decrease waste and find the best material for their production project.

Order Ranking and Stocking Analysis

MRPs can track and analyze the order status from raw materials to supplies. Furthermore, this system also tracks the materials to be restocked.

Pros of MRP

• Make sure perfect inventory control processes
• Improve purchase planning
• Better data management
• Improve production planning

Cons of MRP

• Need correct data entry
• Take longer time for deployment

What should be the Importance of MRP?

MRP systems are important for the following reasons:

• MRP confirms the presence of the right material for production
• It confirms the status of the products for delivery
• Upkeep the inventory management
• Significantly plan the manufacturing activities for your business

What is ERP?

ERP is recognized as Enterprise resource planning software solution. It is a comprehensive solution for daily business procedures. Therefore, ERP solutions are perfect for large enterprises. The ERP solutions come with a precise set of modules that can perform all your business operations in profit in a single place. Thus it can also remove the data duplication.

How it works?

The ERP software will allow its consumers to better project management. Furthermore, it can provide you with the complete financial statements and operations. It will offer a compact view of all compulsory business operations. Afterward, ERP can provide meticulous product performance and permit you to make informed decisions.

Features of ERP

Accounting

Manage your financial status with the help of ERPs. Furthermore, it can track the accounts payable, profit/loss reporting, and so on.

Sales and Marketing

Relish your sales and marketing with this amazing software solution and find new consumers having current customers too.

HR (Human Resource)

Utilize this software solution for hiring new staff or also maintaining the current staff. Therefore, you can track the employees’ attendance, performance, and valuable data in a singular place.

Supply Chain Management

It must be noted that the manufacturing business needs an inventory management system on a particular timeline. So, this software provides you with the best possible outcomes regarding supply chain management.

Manufacturing

The software solution will help to simplify the manufacturing process. It covers the production schedule, raw material quality, and so on.

Pros of ERP

• Business processes optimization
• Reduced operation cost
• Improved customer services
• Security management
• Better team collaboration

Cons of ERP

• Costly
• Steep learning curve

What Should Be The Importance of ERP?

Below are some significant points of ERP:

• Cost-effective features will lead to improvement in productivity.
• Scalable business growth
• Betterment in supply management
• Reduced human errors
• Great team collaboration

What Is The Relation Between MRP and ERP?

ERP and MRP software solutions are working side by side for business optimization. MRP runs as a subsystem of ERP. It provides authentic information about the materials to the ERP. Furthermore, ERP integrates and utilizes this information for other business departments. For example, Finance and accounting departments take the data from MRP and further proceed with ERP to calculate payable accounts. However, it can also determine the production cost.

Therefore, both advanced technologies are keenly working to shape the manufacturing industry and also improve efficiency.

Major Difference Between MRP and ERP?

What should be the Difference between MRP and ERP? Below are some major differences between them:

• The MRP system focuses on material management. While an ERP system can manmaage all business operations seamlessly.
• ERP covers the areas of accounting, finance, HR, supply chain, and project management. On the other hand, MRP only emphasizes material management and production.
• The MRP system is difficult to integrate with other systems. While ERP can easily integrate with other systems/tools. So, most business owners give preference to ERP.
• There is a cost difference between them. ERP comes with broader functionalities. Hence it is costlier than MRP. The MRP is less costly as compared to ERP.
• MRP works as solo software, while ERP is running as an integrated software solution for your business.
• MRP has a limited number of consumers. However, ERP has a broad number of consumers.

Conclusion

MRP vs ERP systems, both are game-changer technologies in the industry. Now after reading our blog, you can find the answer to your query what is the main difference between MRP and ERP? Furthermore, it completely depends upon your business needs which one is suitable for you. If you are running a manufacturing business, then MRP is the best choice. While, if you are going to handle or support all finances, accounts, HR, and project management departments, then must switch to the ERP. So, if you want more assistance regarding both of these technologies, Contact Evincible Solutions. Our proficient team will be happy to assist you.