There are a few critical differences between manufacturing resource planning (MRP) software and enterprise resource planning (ERP) software that manufacturers should be aware of when choosing which type of software to use for their business.
MRP software is designed specifically for manufacturing organizations and therefore contains many features that are geared toward streamlining manufacturing processes. ERP software is designed to give each company a more flexible and comprehensive platform, as managers can use ERP integrations to optimize different nuances of production, sales, reporting, or shipping operations.
Another key difference between MRP and ERP software is how they handle inventory. MRPs use a system called materials requirements planning (MRP) to track inventory levels and generate reports on what needs to be produced. On the other hand, ERP solutions use enterprise asset management (EAM) system to track inventory levels and generate reports.
Finally, MRP software is typically installed on-premise, while ERP software is usually offered as a cloud-based solution. This means that MRP software requires a more significant upfront investment and gives you more control over the software and its use. On the other hand, ERP cloud software is typically less expensive and can be accessed from anywhere with an internet connection.