Material Requirements Planning vs. Enterprise Resource Planning

A graphic saying What is MRP

MRP and ERP Systems

Hello again,

This post is for small to mid-sized manufacturers who are considering MRP or ERP implementation. The following definition is sourced from

We hope you find it useful:

“In your software search, you’ve likely come across both ERP and MRP.

Many definitions of these software categories don’t include much differentiation between the two, which can make the process of choosing a system pretty confusing.

Not to mention the fact that they are only one letter off from each other and that they both heavily deal with the manufacturing industry.


MRP stands for material requirements planning. Its basic purpose is to measure what material you need, how much of it you need and when you need it by, allowing you to ensure the highest rate of production in your manufacturing center.

MRP contains tools exclusively used to assist in manufacturing processes, though companies that do more than just manufacturing are encouraged to use an MRP system to boost inventory profitability.

Businesses typically manage their production planning with these systems, using them to forecast and order materials. This ensures that when those materials are needed for production, the right amount is available on the correct date.


ERP stands for enterprise resource planning and is one of the more common categories of business software, especially among large businesses.

ERP systems, like MRP software, help you manage manufacturing processes like production planning, scheduling and inventory management.

However, the full range of ERP capabilities is much more extensive than just manufacturing.

ERP at its core is an effective way of centralizing information and workflow processes through data management. Because ERP keeps all of your workflow data in one place, all of your business processes draw data from that location to inform insights.

This helps ensure data quality, as it never gets duplicated between systems. It also reduces the likelihood that numbers will get messed up or become difficult to access across internal departments.


The right software choice for you is always subjective. It depends on factors such as your unique business processes, your budget and number of users.

Enterprise resource planning integrates multiple modules and applications to generate a diverse range of data points from a centralized source

MRP systems can help your company streamline its manufacturing efforts by reducing spoilage and using demand forecasts to develop estimates of material requirements.”

Passport Software

Passport Software’s MRP module allows you to set planning rules, set lead times, and provides concise reporting.

PBS™ Manufacturing ERP for small businesses and mid-sized companies is a scalable, affordable modular solution that integrates with other modules to meet your company’s unique needs.


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Great advice, easily explained
for you to grow your business!