ERP Systems

MRP ERP Systems

ERP, or Enteprise Resource Planning, is a business software system that controls data from every department in a business in order to turn that data into information usable by every operational department within that business, thereby allowing the company to function much more efficiently and effectively. MRP, or Materials Requirement Planning, on the other hand, is a business system much smaller in scope. When first designed, its purview was simply to manage the materials within the supply chain of a manufacturing plant, but technologically and business needs called for development, which was realized with the advent of ERP. So, the origins of modern ERP software can be traced, through Materials Requirement Planning II, all the way back to MRP systems.

Today, MRP and ERP still means Materials Requirements Planning and Enterprise Resource Planning. It is what in point of fact enables a business to plan what has to be done and when that task has to be accomplished; it also informs departments of any issues that need to be addressed.

Basically, MRP ERP software systems offer complete solutions that help make growing businesses more productive, competitive, and responsive to customer needs and production requirements. MRP ERP Systems refer to the fact that the systems offer, as a minimum, planning of materials based on finished product. The addition of ERP to MRP systems typically offer additional functions such as scheduling, advanced inventory planning, finance, human resources, customer relationship management, and supplier relationship management. The purpose of these functions is to enhance the flow of materials and information between suppliers, manufacturers, and customers. The latest MRP/ERP systems are designed to work in various manufacturing environments including make-to-order, engineer-to-order, batch process, and mixed. These software systems provide the requisite Inventory, Purchasing, Manufacturing, and Shop Floor controls to effectively communicate between all departments. There are other modules such as Customer Service and Accounting that help make an MRP ERP System complete.

It is important to note that MRP ERP Systems are not just for large enterprises.  Although the initial MRP and MRPII software systems were designed to help very large businesses, nowadays MRP ERP software systems are sized in a way that makes them applicable to businesses of any size. In fact, companies with only 5 employees have implemented such software systems profitably. Therefore, small to medium sized companies prepared to make the purchase and effort to implement an MRP ERP System, will be able to reap the benefits many times over the years that follow.