MRP and ERP are two terms often used synonymously, however they are not one and the same. MRP and ERP integration have key differences in functionalities in which businesses should be aware of when implementing control systems for manufacturing processes.
MRP stands for ‘materials requirement planning.’ It is mainly software based and used to plan, control and manage the materials needed for the manufacturing process. MRP was first introduced in the 1970s and sparked a revolutionary change in how manufacturing and production companies controlled their material requirements. Companies could calculate the materials needed as well the timing of the materials, to a much higher degree of accuracy. This allowed for a much more efficient manufacturing process, reducing waste and errors leading to higher productivity. The functionality of MRP systems expanded to include additional information such as billing, employee and financial needs.
The need for further integration, functionality and automation was the driving force behind an evolution from MRP systems, to fully integrated ERP systems used in modern manufacturing and control. ERP is an acronym for enterprise resource planning and is used to co-ordinate all the resources of a business. These can include manufacturing, sales, marketing and human resources. The goal is to provide transparency amongst the different facets of the business, creating a seamless flow of data. MRP is commonly used as a component an ERP system which can be integrated with all other aspects of the organisation into a single database, to increase efficiency. ERP allows a company to analyse all aspects of their supply chain to monitor and make informed decisions regarding various activities.
A company will only see the benefit of an ERP or MRP system, if it is well integrated. Many companies do not appreciate the processes needed for successful implementation. Based in Royal lamington Spa, Warwickshire, Gideon Hillman consulting possesses comprehensive experience of ERP and MRP integration. Gideon Hillman consultants cover all aspects of MRP, ERP warehouse and supply chain installation, specialising in warehousing, materials management, purchasing management and continuity planning.
For further information ERP and MRP integration, Visit www.hillman-consulting.co.uk