An enterprise resource planning (ERP) system is a business management software suite containing integrated applications for functions like SCM, human resources (HR), manufacturing, financials, and distribution. While a manufacturing resource planning (MRP) system is part of an ERP with specific functionality used to manage procurement and purchasing, plan production, automate inventory control and track labor.
ERP systems are usually designed for larger companies with sophisticated needs in terms of scalability and integration with other advanced business software, including CRM. MRP for small businesses are extensions of ERP that focus on the manufacturing aspects of the business. They offer basic functionality, including tracking inventories, production operations, and materials procurement.
MRP for small business systems is smaller in scope than ERPs, while an ERP is better suited to larger companies with advanced needs for large-scale integration. It’s important to note that many manufacturers who identify as small businesses may still require an MRP system to meet their requirements.