When people talk about MRP and ERP software they often use the terms interchangeably.

For most of us, there is no difference. We know what we mean.

But, for those of you that are curious on the differences here is a quick explainer.

MRP software

The original part of the system (circa 1975), MRP stands for Material Requirements Planning.

This 'engine' is concerned with Bills of Materials, routings, works orders, purchasing, stock control and work to lists.

MRPII software

The next part of our equation appeared around 1978 and stands for Manufacturing Resources Planning. This is when capacity planning and more detailed scheduling came into place.

A lot of businesses will work with a separate MRPII (also known as MRP 2) system, to complement their order management system. For businesses with complex scheduling requirements, this is still an appropriate route to take.

ERP

Enterprise Resource Planning (ERP) appeared as a term around 1990. This is a reference to all the above, and more, being organised into one integrated system.

The order processing and capacity planning tools are extended to include functions such as customer relationship management (CRM), enquiries, sales orders, supply chain integration, invoicing, spares, asset management etc...

In more recent times (last ten years), it seems that many more industry specific ERP solutions have become available. The term ERP seems to have blurred (for us at least) as to what is included.

Fraction ERP

Our cloud ERP system is what we'd like to think of as a traditional manufacturing ERP system. It covers the range of functions listed above (enquiries, sales orders, works orders, purchasing, scheduling, capacity planning, shop floor data capture, shipping and invoicing).

We don't have an accounts function but we do integrate with cloud options (currently Sage, Xero and Quickbooks). You can find out more about our functions on our features pages.

Free trial account

We also know how hard it can be to select an ERP system that is right for you. And, if you have been wrestling with the differences between ERP and MRP software, then you might be even more confused as to what you need.

We offer a free two week trial account, so you can properly evaluate Fraction ERP. There's nothing better than getting your hands on the software and trying it out. Having your team run a few orders through our system is the perfect way to find out if Fraction ERP will do what you need.

Also, you can be inputting orders in a matter of minutes. Our support pages provide step by step instruction and setup can only take a few minutes.

To organise your free trial account, fill in the form below.

ERP and MRP software

We hope this article has shed some light on what the differences are between ERP and MRP software packages. Even within these terms, what is included can blur but the basic idea is that ERP is fully joined up and MRP focuses on specific aspects of manufacturing control.

Either way, we hope you find what works best for you.