MRP or ERP: Which software best suits subcontract precision engineers?

When it comes to managing a successful subcontract manufacturing business, PSL Datatrack says choosing the right software can make all the difference. Two of the most commonly used solutions are MRP (material requirements planning) software and ERP (enterprise resource planning) software. While both offer valuable tools for manufacturers, understanding their differences is key to selecting the best fit for your business. A third option is production control software, which PSL Datatrack will come to later.

What is MRP software?

MRP software is designed to help manufacturers manage material planning, inventory control and production scheduling. It ensures that the right materials are available at the right time to meet production demands.

Key features of MRP software

• Inventory management: Tracks raw materials, work in progress and finished goods
• Bill of materials (BOM): Ensures accurate definition and allocation of component and material BOM items
• Production planning: Helps schedule jobs efficiently
• Purchasing control: Aids purchasing to avoid shortages or excess stock
• MRP software provides precise control over materials and scheduling to prevent production delays and inefficiencies.

What is ERP software?

ERP software is a broader system that integrates multiple business functions, including MRP, finance, customer management and human resources. This type of software provide a centralised platform for managing an entire manufacturing operation.

Key features of ERP software

• Comprehensive control: Includes MRP functionality along with finance, sales and HR management
• Real-time data visibility: Provides insights across departments for better decision-making
• Order management: Tracks customer orders from quotation to delivery
• Compliance and traceability: Supports ISO standards and regulatory requirements
• An ERP system offers a more holistic approach for manufacturers, ensuring that all business processes are aligned for maximum efficiency.

MRP vs ERP: Which is best for subcontract manufacturers?

The choice between MRP and ERP software depends on business complexity.

Factor                            MRP Software                                                  ERP Software

Business Size              Small to Medium                                            Medium to Large

Focus                              Material & Production Planning               Comprehensive Business Management

Integration                    Stand-alone                                                     Multi-department Integration

Scalability                      Limited                                                               Highly Scalable

Cost                                 Lower                                                                   Higher

The third option: PSL Datatrack production control software

For subcontract precision engineers looking for flexibility and traceability, PSL Datatrack says it offers a modular production control software system that provides many of the benefits of both MRP and ERP software. It allows businesses to start with core MRP functions and expand into a more comprehensive solution as they grow.

With PSL Datatrack, manufacturers can:

• Streamline the quoting process to generate estimates quickly and efficiently
• Streamline material planning to reduce waste and improve efficiency
• Improve scheduling and job tracking for better management and efficiency
• Enhance traceability for ISO compliance and quality control.

Conclusion

Choosing between MRP and ERP software depends on the needs of the subcontract manufacturer. If the business requires efficient material planning, MRP may be enough. However, if it needs a complete business management solution, ERP covers non-manufacturing areas such as integrated accounts and HR.

In contrast, PSL Datatrack says its offers a scalable, modular approach that grows with the subcontract manufacturer, ensuring availability of the right tools at every stage of the journey.