ERP vs MRP Difference | Which is the best software for manufacturing businesses? Check what is MRP and ERP and their Pros & Cons. Comparison Table Below.

The debate between ERP vs MRP systems is one that has been around for years, with no clear winner in sight. Both systems have their pros and cons, and it can be difficult to decide which one is right for your manufacturing business. To help you make the best decision for your manufacturing business, we’ve put together a comparison of ERP vs MRP systems. We’ll go over the key features of each system and explain the benefits and drawbacks of each one. By the end of this article, you’ll have a better understanding of which system is best for your business. 

Table of Contents

What is ERP & How Does It Help Your Manufacturing Business?

Now you’ve been in the manufacturing business for some time now, you’ve probably heard of ERP or enterprise resource planning.  Maybe You have also heard that ERP systems help manage and streamline manufacturing processes. Well, that’s correct! 

An ERP software system for manufacturing is a comprehensive business management software solution that helps manufacturers to increase operational efficiency and improve productivity. A typical Manufacturing ERP Software system includes modules for accounting, CRM, SCM, PLM, quality management, and more. With a Manufacturing ERP system, businesses can streamline and automate their manufacturing processes. ERP systems are designed to be scalable and flexible, so they can grow with the business. Therefore, when we say ERP vs MRP systems, ERP systems are one step ahead of MRP systems 

ERP vs MRP what will i get

But now the most important question that comes into your mind that, what will I get if I invest in ERP systems? & How to use it for my manufacturing business?  

Now firstly look at some of the major benefits of ERP for your business. 

Benefits of ERP for Your Manufacturing Business- Get the most out of your investment.

do you know about ERP vs MRP

Whether you are from instrumentation manufacturing, locomotive parts manufacturing or any manufacturing industry, An Enterprise Resource Planning (ERP) system helps a lot. Here are some major benefits. 

1. Central Access with Customized Dashboard:

ERP helps you to gain full visibility and control over production processes. It allows businesses to manage and monitor all aspects of their operations from one central system. 

2. Manage Your Inventory with Your Finger Tips:

As a business owner or as a manager two questions give you a lot of frustration. These questions are: 

  • How much is my raw material remaining? 
  • What is the count of my product that needs to be delivered? 

To resolve these questions using ERP systems, get a holistic view of all types of inventories. For example, your raw material, different kinds of manufactured dies or products, delivered products, Returned vendor parts/dies/products and many more. 

3. Track Compliances:

As a manufacturer, you know the importance of different compliances such as ISO 9001, ISO 27001, ISO 62262. Or maybe you are dealing with DAEMON, UltraISO  or ImDisk. However, it is very hard to keep an eye on every part of quality and track compliance requirements with its improvements. Therefore, you customized ERP for your business that will help you to track compliances.  

4. Get Your Financial Data in One Place:

Running a business is very tough, especially if you’re into the manufacturing business. You must keep an eye on your PO’s (Purchase Orders), Bills that you need to pay, Bills that your clients need to pay, Tax amounts, salaries of employees and many other financial activities. Get every piece of your financial activities with the help of ERP systems This can lead to improved decision-making, increased efficiency, and reduced costs.  

5. Manage Your Product Effectively

MRP vs ERP which is best

Get the details of every point of the manufacturing waterfall model -from product development and launch to delivery and post-sales service. With the help of Manufacturing ERP software, you get real-time visibility into all aspects of the manufacturing business, from finances and inventory to supply chain and customer relationship management. 

6. Improve your Daily Operations:

Use suitable ERP for your business and improve production planning, scheduling, and quality control. As a result, you can reduce overhead costs and increase efficiency. 

Some of the industries that can benefit from manufacturing ERP software include: 

  • Industrial Equipment and Components manufactures  
  • Electronics components manufactures  
  • Automotive parts manufacturers 
  • Locomotive Parts manufacturer  
  • And every industry is related to manufacturing. 

Read More: Best ERP available in the market and its Implementation Plan & Roadmap   


What is MRP (Material Requirement Planning)?

Material Requirement Planning (MRP) is a computer-based system that helps businesses plan for the materials they need to manufacture their products. MRP is a production planning system that helps manufacturers manage the procurement and production of materials. MRP systems are used to figure out how much raw material is needed, when it is needed, and what type of raw material is needed. This information is then used to create production schedules and plans. 

 In other words, MRP systems are typically used in manufacturing environments where finished goods are assembled from component parts. The MRP system tracks the component parts needed to build each finished good, as well as the quantity of each component part that is on hand. When a manufacturer receives an order for a finished good, the MRP system generates a list of the component parts needed to build that good. The manufacturer then procures the necessary component parts and assembles the finished goods.  

MRP systems help manufacturers optimize their production process by ensuring that the necessary materials are always on hand. In short, MRP systems are important because they help businesses manage their inventory levels and production schedules. By having an MRP system in place, businesses can avoid overproduction and stock outs, and they can better meet customer demand.  

Benefits of Using MRP

MRP, or Materials Requirements Planning, is a powerful production planning and inventory control system used by manufacturing businesses. Here are the top benefits of MRP. 

1. Optimize Production

MRP helps businesses optimize their production and inventory levels by considering all aspects of the production process, from raw materials to finished goods.  

2. Track Inventory

MRP systems are used to track inventory levels, forecast future demand, and generate production schedules.  

3. PO Management

MRP can also be used to generate purchase orders for raw materials and components. In addition, MRP systems can help businesses track and control their production costs. 

4. Customer Management

MRP systems can help businesses to improve customer service levels by ensuring that finished goods are available when customers need them. 

ERP VS MRP: Comparison Table

ERP and MRP systems are both types of software that help businesses manage their operations. They are similar in many ways, but there are also some key differences.  

erp vs mrp comparison table

ERP systems are designed to be comprehensive, covering all aspects of a business’s operations. They are also more customizable, which means they can be tailored to fit the specific needs of a business. MRP systems, on the other hand, are designed specifically for manufacturing businesses and focus on managing production and inventory. ERP systems are typically more expensive and complex than MRP systems, but they can offer a more comprehensive solution for businesses. MRP systems are simpler and often easier to implement, but they may not provide the same level of functionality as an ERP system. Here is a comparison table that will help you to analyze which one is best for your business. 

ERP vs MRP: Feature Comparison for Manufacturing Businesses

For more information here is another comparison table of different features so that you can get a better idea of ERP VS MRP  

mrp and erp difference in features

However, it’s difficult to decide which system is right for your business? The short answer is it totally depends on your specific needs. If you’re not sure which system is right for you, talk to a software expert who can help you compare ERP and MRP. 

Wish to Start a 30-day Free Trial for Business Central Today? 

Making the Final Decision: ERP vs MRP

In the world of business, technology has drastically changed the way that things are done. In the past, most businesses relied on manual processes to get things done. However, with the advent of computers and software, things have changed. One of the most important changes that has taken place is in the way that manufacturing businesses operate. In the past, most manufacturing businesses used MRP (Material Requirements Planning) systems. However, more and more businesses are now using ERP (Enterprise Resource Planning) systems. But the most important thing is, both systems have their own set of features and benefits. Although here are two important questions that you need to ask yourself to choose between MRP vs ERP 

1. What’s Your Purpose of Using MRP or ERP?

When it comes to MRP vs ERP, firstly you need to consider for what reason you want to use it? Suppose you only want to improve manufacturing processes then MRP is very useful for you. On the other hand, ERP software is required if you want to optimize, automate, and connect activities that extend beyond manufacturing to accounting, human resources, and other areas. 

2. What is Your Budget?

As we all know MRP is less costly than ERP, however if you want most out of your investment you can extend your budget a little bit and go ahead with ERP. Because ERP covers all the aspects of MRP plus it gives you growth and increases your efficiency. 

Read More : Top 8 Cloud ERP Software: Features, Reviews, and Pricing   

However, it is always best to have a word with an expert, that will analyze your business needs and deliver you the customized solution for your manufacturing business. 

Talk with a Manufacturing ERP Expert to make the right choice for your business-specific requirements!

How to Choose ERP For Your Manufacturing Business?

As we all know, Enterprise resource planning (ERP) software helps businesses manage and automate a variety of key functions, including inventory management, supply chain management, finance, and HR. If you’re a manufacturing business, you likely know that an ERP system is a crucial part of staying competitive and efficient. But with so many ERP software options on the market, how do you know which one is right for your business? 

When it comes to choosing an ERP system for your manufacturing business, there are a few things you need to keep in mind.  

  • First, you need to make sure that the system you choose can integrate seamlessly with your existing systems and processes.  
  • Second, you need to make sure that it is scalable and can grow with your business.  
  • And third, you need to make sure that it has all the features and functionality you need to run your manufacturing operations efficiently. 

Now to fulfill all these requirements, Microsoft Dynamics 365 Business Central ERP is a recommended choice for most manufacturing businesses. 

Microsoft Dynamics 365 Business Central Manufacturing ERP Software Capabilities

Microsoft Dynamics Manufacturing ERP software offers a complete set of capabilities to help you run your manufacturing business. From product lifecycle management to financials and supply chain, our software can help you manage every aspect of your business. Microsoft Dynamics Manufacturing software is a complete ERP solution that offers all the features you need to run your business, including:  

  • Product lifecycle management  
  • Financials  
  • Supply chain management  
  •  Manufacturing process management  
  • Quality management and many more. 

Summary:

When it comes to manufacturing, ERP vs MRP is a popular debate. Both systems have their own set of features and benefits. The main factor in choosing between the two is the company’s needs. However, by comparing and analyzing we can definitely say that Microsoft Dynamics 365 Business Central ERP systems are one step ahead of MRP systems. To learn more about Business Central ERP and how it can help your business, try our free demo today.