ERP Software

What is MRP ERP?

OK, now we’re getting back to the acronym alphabet soup of words that have multiple meanings.In this case the word or words are “manufacturing resource planning,” (MRP) “material requirements planning” and “material resource planning.” Enterprise resource planning (ERP) began as manufacturing resource planning some 40 years ago, but morphed into manufacturing resource planning; that was followed by material resource and requirements planning somewhere along the way. Now, doesn’t that all make sense? Somewhere along the way we will find clarity and it will all become clear and you will know the answer when someone asks, what is MRP ERP? 

To simplify matters, understand that all of the MRPs are used primarily by the manufacturing industry; and are self-explanatory. Material requirements planning concerns the type of and amount of materials needed for a manufacturing production; material resource planning involves the resources required to get the job done. Perhaps the term should be manufacturing supply chain management, because that is really what it’s all about, supplies and resources.

MRP software is use d to manage the supply chain and production schedule. It’s all about inventory, purchasing and procurement, distribution, logistics, shipping, the warehouse and of course, the manufacturing project; it’s also about planning and scheduling. All of this relates to machine workloads, labor loads and personnel coordination, pre-assembly and maintenance.All of these are critical to successful manufacturing production. So, what is MRP ERP?

Whereas the MRPs relate to manufacturing, enterprise resource planning (ERP) addresses the needs of any type of business, thus, the “enterprise.” It should be noted however, that ERP, today, has become synonymous with all businesses and industries; which means it encompasses MRP, as well. And it should also be noted that many ERP software vendors exclusively market manufacturing software.

MRP enterprise software ensures that you have the materials you need in place for production; that you are maintaining proper inventory levels and are prepared for just-in-time deliveries; that you have purchased all of the necessary materials; and that you have planned and scheduled efficiently, so that you save time and have less waste. Other departments are also brought into the manufacturing scenario; these include accounting, sales and marketing and customer relationship management.

Applications modules are provided for all of these entities, along with tools for analysis, reporting and business intelligence, which gives management real-time visibility of the manufacturing production. So, when they ask, what is MRP ERP? You’ll be able to tell them.

Written by :

Amy Cruz