Materials Resource Planning (MRP) and ERP (Enterprise Resource Planning) are essentially system frameworks to help better manage manufacturing process. The state of your current logistics functions and future requirements, the size of business and complexity of manufacturing process, informs which system is preferable.

ERP & MRP demystified

 

We tend to find potential clients can always benefit from new technologies and solutions to upgrade their supply chain, such has been the advances in the area. At Acorn with have the experience to advise and aid you in implementing the best fit of software and hardware solutions for your unique situation. Your organisational and manufacturing needs along with budgetary and market constraints will define which ERP/MRP framework is preferable. But in plain terms what are they?

MRP simplified
ERP simplified

Calculating what is needed to manufacture a product: what materials and components are required. Materials Requirements Planning is a 'push' system where inventory levels and goods produced are based on forecast need. It comprises production planning, scheduling and inventory control systems that are enabled by a software and hardware technology mix appropriate for the OEM. It is a standalone system easier to apply and execute.

A fully integrated manufacturing system providing all organisational functions with the information they need to function efficiently. An Enterprise Resource Planning solution at a base level manages production planning, scheduling and inventory management, But on a wider implementation is able to optimise the overall production process through coordination of functions, with transparency in collecting and accessing production and manufacturing data. It can centralise business processes from supply chain management, financial management, inventory management, manufacturing management, customer and supplier relationship management and HR.

Factors in ERP selection

— How do we make informed decisions on our manufacturing data?
— How do we control production costs?
— How do we shorten lead time and create leaner inventory?
— How do we optimise materials and build quality?
— How do we achieve more customer-specific production?
— How do we connect production and warehousing more efficiently?

Factors to consider in MRP

— What is your production capacity and flexibility?
— Do you have insights into order history and seasonal demands?
— What are supplier and materials lead time and restocking considerations?
— How best do we make sure production demand and inventory sync up?
— What on-hand inventory do we need for efficiency and resilience?