Difference Between ERP & MRP

attractive woman using computer image by Paul Hill from <a href='http://www.fotolia.com'>Fotolia.com</a>

ERP and MRP are acronyms for software technology that enables people to perform company processes. Both also refer to a completed implementation, or use, of software. ERP stands for enterprise resource planning, and MRP is short for material requirements planning or manufacturing resource planning.

Industries

MRP is usually a part, or a subset, of ERP, depending on the industry. MRP typically is used in manufacturing companies. ERP can apply to any company.

Business Processes

ERP and manufacturing resource planning can apply to all business processes in a company, including manufacturing, planning, finance, order management, inventory, distribution and purchasing. Material requirements planning usually refers to the material planning processes in a manufacturing company.

Technology

ERP can include supporting technology such as networks, databases and hardware; it is often viewed as a backbone system that supports other systems or technology. Material requirements planning, usually refers to business process-enabling software.

Project Scope

Implementations involving ERP are broader in scope and impact on processes and people than MRP. Material requirements planning is often referred to as a module within either manufacturing resource planning or ERP.

Complementary Technology

Product life cycle management (PLM), customer relationship management (CRM), enterprise asset management (EAM) and supply chain management (SCM) can be viewed as additional software outside the scope of ERP and MRP.