ERP MRP software seem to be term that has interchangeable parts.

For most of us, this is OK. We know what we are talking about.

But, if you are curious let us explain the differences in this short article.

What is the difference between ERP and MRP?

MRP (Material Requirements Planning) and ERP (Enterprise Resource Planning) are both systems that are used to manage resources within a business, but they serve different purposes and scopes.

MRP is primarily focused on the planning of inventory for manufacturing operations. It attempts to balance the demands of production with the supply of materials and manufacturing activity. Bills of materials, routes and work orders all sit comfortably in the MRP camp.

ERP is a comprehensive business management software that typically includes the MRP functionality. The extended functions include quotations, sales order management, finance and customer relationship management.

Don't forget MRPII!

For those of you that are eagle eyed, you may have heard of MRPII (pronounced MRP two).

Its full name is Manufacturing Resource Planning and this is when more detailed scheduling starts to appear in the mix. Capacity management and defining the parameters of work centres is when this part of the system started to mature.

If you think of ERP MRP software as an onion, it would look something like this:

The functionality you need from your ERP MRP software selection will help you to define how much, or how little, you need from the above list of features. Each part of the system builds on the previous part.

A rough timeline

To put all of the above into the context of time:

1975 - MRP

1978 - MRP II

1990 - ERP

The features that have been developed over the past couple of decades have primarily focused on integration between systems, moving to the cloud and reducing costs.

A simple ERP system

We believe this is the next evolution. Simple ERP software that is quick to learn, easy to use and low cost.

This is the mission Fraction ERP has been on for the past five years. In terms of ERP MRP software, Fraction sits right in the middle of the ERP offerings, but without the cost.

We believe that you should be able to try out ERP software before you buy. This is why we offer a free two week trial to help you get to grips with the system and put some test orders through the system.

If you are ready to look at Fraction ERP in more detail, please fill in the form below or use this link.

Hopefully this short article has helped to clarify what people mean when they say ERP MRP software. But, if you are like the majority of our customers, you just want a piece of software that reduces headaches, helps your business make more money and deliver on time.

Either way, it's all good!