ERP vs MRP: Know the Differences and Benefits

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ERP vs MRP : Know the Differences and Benefits

Businesses belonging to almost every sector are now charting out bigger goals on the back of technology and all that it has to offer. Two of the most impressive offerings so far have been the ERP and MRP software, thoughtfully built to embody automation. While both tools work wonders, it gets challenging when firms have to choose between the ERP vs MRP.

Before we discover who emerges victorious in the battle of ERP vs. MRP, let’s first understand what the MRP and ERP operations management tools are designed for and what benefits they bring to businesses. Then, we will study their key differences to determine which one serves a higher purpose.

What is MRP software?

Material Requirements Planning (MRP) is essentially software that helps businesses accurately determine what materials they require, in what quantities, and within what time frames. MRPs have been one of the oldest inventory management tools that have wonderfully evolved with time. The new-age MRPs include detailed capacity planning, scheduling, shop floor control, and other calculations. They provide first with precise forecasts and real-time data, optimize processes, enhance the overall performance – all to bring in more efficiency.

Benefits of MRP:

-Experts estimates demand to have the necessary materials in place
-Easy calculation of the amount of time and labor required to complete manufacturing
-Promotes minimized inventory levels, optimizing inventory management
-Helps reduce customer lead times, improving overall customer satisfaction
-Overall increase in the business productivity

What is ERP software?

Enterprise Resource Planning (ERP) is essentially software that is leveraged by organizations to manage daily or recurrent business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. It also helps streamline inventory management, order management, and data related to services organizations. ERPs enable firms to access and study data in real-time, bringing in more efficiency while staying within the designated budgets.

Benefits of ERP:

-Exclusively designed to streamline multiple business processes
-Facilitates consistent coordination between different departments of a particular organization
-Provides access to real-time data so teams can work in sync and stay updated on modifications
-Does not require manual interference once the implementation process is complete
-Eliminates the need to dedicate resources to repetitive and tedious tasks.


Key Differences Between ERP & MRP




Built to streamline the whole process – from the supply of raw material to the final delivery. Built to specifically manage the nuances of the manufacturing process.
ERP is developed with complete integration in mind. MRP systems are usually integrated with other software.
ERP is popular among many industries and handles many departments. MRP system is exclusive to the manufacturing industry.
Given that ERPs handle multiple business processes, they fall on the higher side of the price range. Given that MRPs only handle manufacturing processes, they are comparatively more affordable.

Both the tools are built for different purposes, it can get tricky to decide as to which one holds supremacy over the other. Ultimately, the decision to choose between the two depends largely on your business requirements.

PTS Systems and Solutions – Best ERP System Solutions in India

If you are looking for effective ERP software implementation, PTS Systems and Solutions is where you’ll find it. Our ultimate objective is to provide businesses with more value, control, and visibility through the successful implementation of ERP. We aim to be responsive to the management’s needs, expectations, and to re-engineer the business process to improve productivity and reduce the cost of operations for a better ROI.

If you are looking for tailored ERP system solutions, contact us today.

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