[{"data":1,"prerenderedAt":111},["ShallowReactive",2],{"1O8qNKBSwZHb_C0RMU5y20oW6EW0P2PEvm8Zj9jw4Y8":3,"article_mrp-erp-difference_delmiaworks":10,"_apollo:default":109,"_apollo:identified":110},{"mailchimpAudience":4},{"actionUrl":5,"slug":6,"locale":7,"default":8,"__typename":9},"","mrp-erp-difference","en","https:\u002F\u002F3ds.us3.list-manage.com\u002Fsubscribe\u002Fpost?u=ed4601044e1936748c0d2aa6b&id=e5080ff9fe&f_id=002d4de2f0","MailchimpAudience",{"posts":11},{"nodes":12,"__typename":108},[13],{"id":14,"slug":6,"title":15,"uri":16,"excerpt":17,"locale":18,"featuredImage":21,"tableOfContents":30,"content":31,"date":32,"authorJobTitle":5,"author":33,"masterings":45,"globalTags":49,"products":63,"disciplines":77,"seo":97,"__typename":107},"cG9zdDo1NjE2MQ==","MRP vs ERP – What’s the Difference?","\u002Fproducts\u002Fdelmiaworks\u002Fmrp-erp-difference","\u003Cp>The progression manufacturers are making from MRP to ERP has its basis…\u003C\u002Fp>\n",{"locale":19,"__typename":20},"en_US","Locale",{"node":22,"__typename":29},{"large":23,"__typename":24,"medium_large":25,"thumbnail":26,"srcSet":27,"sizes":28},"https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fwhat-you-need-to-know-about-mrp-and-erp-final-2-1024x615.jpg.webp","MediaItem","https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fwhat-you-need-to-know-about-mrp-and-erp-final-2-768x461.jpg.webp","https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fwhat-you-need-to-know-about-mrp-and-erp-final-2-150x150.jpg.webp","https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fwhat-you-need-to-know-about-mrp-and-erp-final-2-1024x615.jpg.webp 1024w, https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fwhat-you-need-to-know-about-mrp-and-erp-final-2-300x180.jpg.webp 300w, https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fwhat-you-need-to-know-about-mrp-and-erp-final-2-768x461.jpg.webp 768w, https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fwhat-you-need-to-know-about-mrp-and-erp-final-2.jpg.webp 1389w","(max-width: 640px) 100vw, 640px","NodeWithFeaturedImageToMediaItemConnectionEdge",[],"\u003Cp>The progression manufacturers are making from MRP to ERP has its basis in how diversified their product lines have become in response to customers’ need for more versatile, configurable and customizable products. Many manufacturers got their start producing the same product using components they sourced locally or made themselves. Customers weren’t given the option of customizing products. Doubling down on manufacturing efficiency, the core process areas of Bills of Materials (BOM), Inventory Tracking and Master Production Scheduling dominated global manufacturing. Automating these three areas became the foundation of Material Requirements Planning (MRP).\u003C\u002Fp>\u003Cp>Global\ncompetition became fierce fast, forcing manufacturers to rely on price and\navailability to win more sales. Offering more customized products and\ncapitalizing on the ideas customers had for new, configurable products helped\nmanufacturers escape price wars and becoming a commodity. More feature-rich\nproducts that often needed services also required a new production system, and\nManufacturing Resource Planning (MRPII) was born. \u003Ca href=\"https:\u002F\u002Fwww.gartner.com\u002Fit-glossary\u002Fclosed-loop-mrp-closed-loop-material-requirements-planning\u002F\">Gartner defines closed-loop MRP\u003C\u002Fa> \u003Cem>as\na system built around MRP that also includes production planning, master\nproduction schedule, and capacity requirements planning. Once the planning\nphase is complete, and the plans have been accepted as realistic and\nattainable, the execution functions come into play. These include the shop\nfloor control functions of input\u002Foutput measurement, detailed scheduling and\ndispatching, as well as anticipated delay reports from both the shop and\nvendors, purchasing follow-up and control, and other functions\u003C\u002Fem>.\u003C\u002Fp>\u003Cp>MRP II was\nperfect for the expanding world of manufacturing that had become heavily\ndependent on suppliers. It’s common to find 60% or more of a given new\nproducts’ components are from suppliers and production partners outside the\ncompany. For Engineer-to-Order manufacturers, it’s close to 75% or more.\nProducts are becoming complex exceptionally fast, with a typical \u003Ca href=\"https:\u002F\u002Fwww.technologyreview.com\u002Fs\u002F508231\u002Fmany-cars-have-a-hundred-million-lines-of-code\u002F\">new car having over 100 million lines of\ncode according to the MIT Technology Review\u003C\u002Fa>, not counting future Amazon Alexa integration.\u003C\u002Fp>\u003Cp>To stay\ncompetitive products have to be managed over their lifecycles, not just month\nto month to meet production targets. The financial implications of changing\nproduction mix need to be predicted first and factored for customer demand, and\nsupplier quality levels and inventories checked for availability. Every area of\na manufacturing business needs to stay coordinated with production costs,\ndirection, forecasts, and plans. Enterprise Resource Planning Systems (ERP) was\ndesigned specifically for this need and continue to expand to meet\nmanufacturers’ requirements today.\u003C\u002Fp>\u003Cp>Comparing The Benefits of MRP, MRPII, And\nERP \u003C\u002Fp>\u003Cp>Designed for an era when mass production dominated manufacturing, MRP systems are designed to make factories as efficient was possible on their own. The greater the product complexity, the more integrated manufacturing needed to be across an entire business, leading to MRP II. The proliferation of new products, greater intensity of global competition, shorter time-to-market, and need for greater cost control and visibility led to ERP platforms being created.  The following compares the benefits of MRP, MRP II, and ERP:\u003C\u002Fp>\u003Cdiv class=\"wp-block-image\">\u003Cfigure class=\"size-large thumbnail wp-caption aligncenter\">\u003Cimg loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"502\" src=\"https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fmrp-versus-erp-1024x502.jpg.webp\" alt=\"\" class=\"wp-image-55341\" srcset=\"https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fmrp-versus-erp-1024x502.jpg.webp 1024w, https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fmrp-versus-erp-300x147.jpg.webp 300w, https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fmrp-versus-erp-768x377.jpg.webp 768w, https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Fmrp-versus-erp.jpg.webp 1248w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \u002F>\u003C\u002Ffigure>\u003C\u002Fdiv>\u003Cp>What Motivates Manufacturers To Change from MRP to ERP  \u003C\u002Fp>\u003Cp>It’s common for manufacturers to begin operations relying on Microsoft Excel for production scheduling and Intuit QuickBooks for their financials and it’s the same with how many progress from MRP to ERP.  The more they become reliant on outside distributors and suppliers, the more the added advantages of ERP motivate them to migrate from MRP. Having two different systems that aren’t in sync with each other quickly leads to problems including higher than industry average scrap rates, missed customer shipments, limited visibility & control of manufacturing costs and more. Eldon James is an example of a leading plastics manufacturer who chose to migrate away from Microsoft Excel and QuickBooks to an IQMS EnterpriseIQ ERP software system. Here’s what they were able to accomplish:\u003C\u002Fp>\u003Cul class=\"wp-block-list\">\n\u003Cli>On-time deliveries happened 50% of the\ntime with siloed systems that didn’t communicate, and with the IQMS\nEnterpriseIQ ERP system integrated across their operations, they soared to 98%\n– a jump of 96%. By\nhaving a single system that organized all the data they needed for production\nscheduling, quality assurance, and shipping, Eldon James was able to increase\ntheir on-time delivery accuracy nearly 100%, jumping from 50% to 98% in less\nthan a year.\u003C\u002Fli>\n\u003C\u002Ful>\u003Cul class=\"wp-block-list\">\n\u003Cli>Reject rates plummeted from 30% to 2% as\nQuality Assurance had real-time monitoring to track where scrap was being\nproduced in the production process.\nLike on-time deliveries, scrap rates and reject rates drastically improved when\nEldon James had real-time data from IQMS’ ERP system to manage production.\nWhere and how to scrap was being produced was no longer a mystery; the answers\nto the most challenging quality assurance questions were in the IQMS system\nanytime they needed them.\u003C\u002Fli>\n\u003C\u002Ful>\u003Cul class=\"wp-block-list\">\n\u003Cli>The long-term goal of offering and\nproducing over 6,000 products has been achieved with scale to spare. One of Eldon James’ strategic\npriorities is always to be innovating, always find new ways to improve, and\nthis includes their new product development strategies. With IQMS’ ERP system\nin place today, they are now offering over 6,000 products to their customers\nlocated in 40 different countries. \u003C\u002Fli>\n\u003C\u002Ful>\u003Cp>Conclusion\u003C\u002Fp>\u003Cp>MRP began on the shop floor and has stayed within the four walls of factories as a system for continually improving production efficiency. Today many of the core elements of \u003Ca href=\"https:\u002F\u002Fwww.iqms.com\u002Fproducts\u002Ferp\u002Fmanufacturing\u002Fscheduling\u002Fmrp.html\">MRP software \u003C\u002Fa>systems are included in \u003Ca href=\"https:\u002F\u002Fwww.iqms.com\u002Fproducts\u002Ferp\u002F\">ERP software systems\u003C\u002Fa> including Material Requirements Planning, Labor Capacity Planning, Auxiliary Equipment Planning, Machine & Work Center Capacity Planning AND Rough Cut Capacity Planning. The more adept manufacturers become using the MRP functional areas of their ERP systems, the more efficient they become at achieving their manufacturing goals, especially those that rely on suppliers, partners, and distributors.    \u003C\u002Fp>\u003Cdiv class=\"wp-block-image\">\u003Cfigure class=\"size-large thumbnail wp-caption aligncenter\">\u003Cimg loading=\"lazy\" decoding=\"async\" width=\"552\" height=\"248\" src=\"https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Ferp-fit-and-function-cta-2.jpg.webp\" alt=\"\" class=\"wp-image-56158\" srcset=\"https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Ferp-fit-and-function-cta-2.jpg.webp 552w, https:\u002F\u002Fblog-assets.solidworks.com\u002Fuploads\u002F2025\u002F12\u002Ferp-fit-and-function-cta-2-300x135.jpg.webp 300w\" sizes=\"auto, (max-width: 552px) 100vw, 552px\" \u002F>\u003C\u002Ffigure>\u003C\u002Fdiv>","2019-05-30T18:03:38",{"node":34,"__typename":44},{"nicename":35,"description":36,"slug":35,"name":37,"firstName":38,"lastName":39,"avatar":40,"__typename":43},"lcolumbus","Louis is currently serving as DELMIAWorks Brand Senior Marketing Manager. Previous positions include Director Product Management at Ingram Cloud, Vice President Marketing at iBASEt, Plex Systems, Senior Analyst at AMR Research (now Gartner), marketing and business development at SaaS start-ups.","Louis Columbus","Louis","Columbus",{"url":41,"__typename":42},"https:\u002F\u002Fsecure.gravatar.com\u002Favatar\u002F017636990cdea5c6bc0330b5cc6413c8550d64ef8bae860eeb42a12959427ffc?s=96&d=mm&r=g","Avatar","User","NodeWithAuthorToUserConnectionEdge",{"nodes":46,"edges":47,"__typename":48},[],[],"PostToTaxonomy_masteringConnection",{"nodes":50,"__typename":62},[51,57],{"id":52,"name":53,"slug":54,"uri":55,"__typename":56},"dGVybTo5NjI3","Enterprise Resource Planning (ERP)","erp","\u002Ftags\u002Ferp\u002F","Taxonomy_tag",{"id":58,"name":59,"slug":60,"uri":61,"__typename":56},"dGVybTo5Njc1","Production Planning and Scheduling","production-planning-scheduling","\u002Ftags\u002Fproduction-planning-scheduling\u002F","PostToTaxonomy_tagConnection",{"edges":64,"nodes":74,"__typename":76},[65],{"isPrimary":66,"node":67,"__typename":73},false,{"id":68,"name":69,"slug":70,"uri":71,"__typename":72},"dGVybTo1NA==","DELMIAWorks","delmiaworks","\u002Fproducts\u002Fdelmiaworks\u002F","Taxonomy_product","PostToTaxonomy_productConnectionEdge",[75],{"id":68,"name":69,"slug":70,"uri":71,"__typename":72},"PostToTaxonomy_productConnection",{"nodes":78,"edges":92,"__typename":96},[79],{"id":80,"name":81,"slug":82,"uri":83,"parentId":84,"disciplines":85,"__typename":91},"dGVybTo3Ng==","Manufacturing","manufacturing","\u002Fdisciplines\u002Fmanufacturing\u002F",null,{"nodes":86,"__typename":90},[87],{"title":81,"uri":88,"parentId":84,"__typename":89},"\u002Fdisciplines\u002Fmanufacturing","Discipline","Taxonomy_disciplineToDisciplineConnection","Taxonomy_discipline",[93],{"isPrimary":66,"node":94,"__typename":95},{"parentId":84,"id":80,"name":81,"slug":82,"uri":83,"__typename":91},"PostToTaxonomy_disciplineConnectionEdge","PostToTaxonomy_disciplineConnection",{"canonical":5,"title":98,"metaDesc":5,"opengraphAuthor":5,"opengraphDescription":99,"opengraphTitle":15,"opengraphUrl":100,"opengraphSiteName":101,"opengraphPublishedTime":102,"opengraphModifiedTime":103,"twitterTitle":5,"twitterDescription":5,"readingTime":104,"metaRobotsNoindex":105,"__typename":106},"MRP vs ERP – What’s the Difference? - Blog Solidworks","The progression manufacturers are making from MRP to ERP has its basis…","\u002Fproducts\u002Fdelmiaworks\u002Fmrp-erp-difference\u002F","Blog Solidworks","2019-05-30T22:03:38+00:00","2025-12-17T17:34:31+00:00",5,"noindex","PostTypeSEO","Post","RootQueryToPostConnection",{},{},1777034306116]