ERP vs. MRP: What’s the Difference?

ERP vs. MRP; what’s the difference, anyway?

For those in manufacturing, the answer may seem obvious. After all, ERP (enterprise resource planning) is the software that helps businesses manage inventory, finances, and supply chains, while MRP (materials requirements planning) is the software used to plan production and manage inventories of finished goods, work-in-progress, and raw materials. Additionally, for those in the cannabis industry, specialized cannabis software can also be utilized to track inventory, manage compliance and streamline various business operations.

Still, there is some confusion about the difference between ERP and MRP. In part, this is because the two terms are often used interchangeably, even though they refer to different things. It’s also because, in practice, the line between ERP and MRP has become blurred as the two cannabis manufacturing software systems have evolved and become more integrated.

Keep reading for a full summarization of ERP vs. MRP, some examples, similarities between the two, and more.

ERP/MRP Meaning

Knowing the meaning of ERP and MRP ensures you’ll never get the two confused. As stated earlier, ERP is enterprise resource planning software. Meanwhile, MRP is materials requirements planning software.

More on ERP Systems

ERP systems are all-encompassing and cover a broad range of business needs, from accounting to human resources to supply chain management. In other words, ERP software is designed to help businesses manage their entire operations. Innovative software like cannabis ERP software is helping companies manage and streamline operations.

An ERP system will usually include modules for finance, accounting, manufacturing, inventory, and more. The specific modules offered by an ERP system will vary depending on the software. However, most ERP systems will offer some combination of the following:

– Financials

– Accounting

– Manufacturing

– Inventory management

– Supply chain management

– Human resources

– Customer relationship management

– Business intelligence

More on MRP Systems

On the other hand, MRP systems are focused narrowly on manufacturing. In particular, MRP software is designed to help businesses plan production and manage inventories of finished goods, work-in-progress, and raw materials.

An MRP system will usually include modules for production planning, inventory management, and sometimes supply chain management. The specific modules offered by an MRP system will vary depending on the software. However, most MRP systems will offer some combination of the following:

– Production planning

– Inventory management

– Supply chain management

– Business intelligence

As you can see, the difference between ERP and MRP is clear. ERP software is designed to help businesses manage their entire operations, while MRP software is designed to help businesses plan production and manage inventories.

Now that you know the meaning of ERP vs. MRP, let’s take a look at some examples.

MRP ERP Systems Examples

SAP Business One

SAP Business One is an all-in-one business management software designed for small and medium-sized businesses. The software includes modules for accounting, manufacturing, inventory management, supply chain management, and more.

Oracle E-Business Suite

Oracle E-Business Suite is a comprehensive business management software suite that includes modules for accounting, manufacturing, inventory management, supply chain management, human resources, and more.

Microsoft Dynamics 365 for Finance and Operations

Microsoft Dynamics 365 for Finance and Operations is an all-in-one business management software suite that includes modules for accounting, manufacturing, inventory management, supply chain management, and more.

Infor CloudSuite

Infor CloudSuite is a comprehensive business management software suite that includes modules for accounting, manufacturing, inventory management, supply chain management, human resources, and more.

GrowerIQ

GrowerIQ is the most intuitive ERP for licensed cannabis producers. As an end-to-end tracking solution for the cannabis industry, this software helps licensed producers boost traceability, lower operating costs, remain compliant, and improve product quality management.

As you can see from these examples, ERP systems can be either all-in-one suites or they can focus on a specific area of business, like manufacturing or accounting.

Let’s take a closer look at the similarities between MRP and ERP systems.

How are MRP and ERP Similar?

MRP and ERP systems are similar in a few key ways.

Important to note is that both MRP and ERP systems are designed to help businesses manage their operations. Both types of software include modules for accounting, manufacturing, inventory management, supply chain management, and more.

Equally essential to remember is that both MRP and ERP systems can be either all-in-one suites or they can focus on a specific area of business, like manufacturing or accounting.

In addition, both MRP and ERP systems are available in on-premise and cloud-based versions. And we should keep in mind that both MRP and ERP systems can be customized to meet the specific needs of a business.

Loving this article? Make sure to check out our other article on how to select a manufacturing software before you leave!

Closing on ERP vs. MRP

To sum it up, ERP systems are designed to help businesses manage their entire operations, while MRP systems are designed to help businesses plan production and manage inventories.

Now that you know the meaning of ERP vs. MRP, you’ll be able to make more informed decisions about which type of software is right for your business. Feel free to contact us at any time if you have questions about ERP or MRP software for your cannabis business.

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