MRP or ERP, Which Is the Right Pick for Your Business?

December 22, 2021 by
MRP or ERP, Which Is the Right Pick for Your Business?
Konsultoo Software Consulting PVT. LTD, Nitesh Macwan

People who involve in manufacturing are familiar with ERP or MRP software. Similar features and functionalities in both put you in a dilemma when choosing from these two for your company. However, both MRP (Material Requirements Planning) and ERP (Enterprise Resource Planning) are widely used to automate business operations and generate more revenues. 

Let's understand the functionality of MRP and ERP software properly.

MRP Software

MRP software is a kind of application, which automates the manufacturing processes by planning and scheduling materials. Apart from this, it also controls the materials.

The key role of MRP software is to manage the inventory by maintaining the quantities of inventory. MRP handles the various inventory tasks single-handedly like ordering required materials, when and in what quantities. 

MRP software provides you with accurate inventory data that includes the real-time information of materials and components that are vitally important for manufacturing processes. You can create purchase orders based on updated data about inventory. In addition to this, it also helps generate reports and alerts including rescheduling notes. Let's move on to ERP now.

ERP Software

ERP was originated from MRP, which caters to the needs of the different kinds of businesses. ERP can manage multiple vital tasks effortlessly the likes of human resources, sales management, marketing, inventory management, accounting, supply chain management, and many more. Interestingly, MRP (Materials Requirements Planning) is also included as a module. 

Odoo is the best ERP software added more users as compared to other ERP software.

What Is The Connection Between MRP And ERP?

The association between MRP and ERP is very old. MRP is also referred to as an ERP solution. Both MRP and ERP offer cost-effective solutions depending upon the type of business. Both are largely used to streamline operations.

The Perks of MRP And ERP

Both ERP and MRP are beneficial to small and medium businesses when it comes to saving time and enhancing productivity. You can appropriately manage all your confidential data using these solutions.

MRP Benefits

Nowadays, manufacturing industries have noticed the rise of workload on employees, which may affect the crucial tasks. In such a case, The MRP helps reduce the burden on key members through automated features, thereby reducing errors. It is a great option for better data management and documentation.

With the best inventory management, MRP offers assistance to prevent overstocking and minimize inventory costs for your business as much as possible. On top of that, it also simplifies work scheduling and distribution planning. Businesses get advantages with real-time forecasting on material requirements provided MRP.

MRP allows easy access to updated data, which can help provide the customers with better services.

ERP Benefits

ERP is a cost-effective solution for small to medium-sized businesses. It is the best option for companies to go paperless. ERP system helps increase efficiency and reduce human efforts through its automated features. 

Although, the implementation of ERP software into your system costs higher, its operational cost is quite affordable due to the tools it has for saving time and minimizing human involvement on crucial operations.

Let's discuss the contrast between ERP and MRP software.


MRP is a standalone module, which has limited tools for inventory or material requirements management.

It does not support other business operations or activities. It generally deals with inventory operations.

It has a few modules with simple functionalities making it cost-effective as compared to ERP.


ERP is a business management software consisting of a variety of business applications. These modules are particularly developed to meet a wide range of business operations.

The integration with other modules makes ERP a complex system in comparison to MRP. It can smoothly integrate with other software and modules.

ERP is an expensive system due to the rich functionality of the modules.

ERP deals with critical business tasks such as accounting, HR, Sales, purchase, manufacturing, inventory, supply chain, and many others. 

Which Is the Perfect Choice for Your Business?

Both ERP and MRP are worth using as per their features. The choice depends upon the requirements and budget of your company. In this blog, we have unfold the qualities of both software that will help you choose the right solution for your business growth.

MRP or ERP, Which Is the Right Pick for Your Business?
Konsultoo Software Consulting PVT. LTD, Nitesh Macwan December 22, 2021
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