MRP vs ERP: Software for Dummies
Materials Resource Planning, better known as MRP, is designed to control inventory and production most specifically. Enterprise Resource Planning, aka ERP, is an overall business solution that includes modules for MRP manufacturing processes.
MRP helps enterprises control and streamline processes synonymous with order fulfillment. MRP Software is designed to analyze production demands from current sales orders, short and long term sales forecasts, and then procures the exact information for what is needed to manufacture each order. MRP software considers factors like expected lead times, order quantities, and the level of safety stock in inventory when generating it's list of materials to purchase. What MRP Software lacks, ERP Software is likely to have. MRP is useful for inventory and production optimization, but not built to facilitate sales or accounting processes.
]]>MRP software is not always the right solution for enterprises. For custom-designed products or low-volume production companies, MRP is not a wise investment. MRP software is a better fit for businesses with a large order volume or diverse material purchases.
ERP Software can be used to monitor and manage all aspects of business, including modules controlled by MRP Software. ERP software is designed to streamline and assist with processes associated with accounting, sales, production, logistics and much more. ERP vendors offer their solutions as a suite of integrated modules that work together to share information to decision makers, so that informed decisions can be made. When it comes to collaboration throughout an enterprise, ERP software is an enterprise's best software solution bet.
Choosing the right ERP or MRP vendor isn't as easy as one would imagine. Best advice is: do your research! ERP and MRP solutions are both worth looking into as an enterprise, to achieve maximum ROI on your products and services. To help with the research process download your free copy of Business Software's Top 20 ERP Software Vendors: http://www.business-software.com/top-20-erp-vendor-report.php
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