ERP Software

Material Requirements Planning Enterprise Resource Planning Software

MRP (Material Requirements Planning) is an inventory reordering tool that has evolved into the realm of support planning and extended into shop floor control.  Many ERP (Enterprise Resource Planning) software solutions include an MRP module.  However, the module or grouping of functionality may not be called MRP, but it is essentially the same thing.  For example, SAP split MRP functionality into two modules called MM (Materials Management) and PP (Production Planning).  Oracle calls their MRP functionality Procurement and Manufacturing.

MRP ERP software solutions are suited to manufacturers.  However, there are two types of manufacturers; discrete and process.  A discrete manufacturer is typically one in the automobile, aerospace, or electronics industry.  Discrete manufacturers put things together.  When these things are taken apart, they are still useable pieces.  For example, if you dismantle a car, you still have a usual steering wheel, tires, and the like.  Process manufacturers mix things together that can no longer be taken apart.  A process manufacturer is typically in the chemicals industry, food and beverage industry, pharmaceuticals industry, or pulp and paper industry.

Many Enterprise Resource Planning products evolved from MRP products.  These MRP ERP software solutions compete with ERP vendors that evolved from other specialties.  For example, PeopleSoft started out as a human resources company and grew there Enterprise Resource Planning solution to include MRP functionality.  It doesn’t matter whether you select an Enterprise Resource Planning software solution that evolved from an MRP or not.  However, selecting the right MRP ERP software solution with the right functionality to suit your business needs is a big deal.

There are a large number of Enterprise Resource Planning vendors that offer MRP ERP software solutions.  Because there is no consistency in the naming convention of MRP ERP solution modules, it is sometimes makes ones exploration of the different offerings difficult and convoluted.  It’s a good idea to go to different Enterprise Resource Planning vendor websites and read detailed reviews of each module and the functionality it provides.  Knowing what you want and getting what you want are two different things.  All too often companies think they are getting one thing and end up with another.  If you have to hire external help to assist in the exploration of all the different MRP ERP software solution offerings, then by all means do so.

Written by :

kristine H