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MRP vs. ERP vs. CRM, Pros & Cons for Businesses

MRP vs. ERP vs. CRM, Pros & Cons for Businesses

Improving access to information is essential for business growth, reducing costs, and improving efficiency. Choosing the right software package is essential

Every business wants to reduce costs, improve service, grow sales and save money.

It’s a simple and straightforward recipe for success! Well, many companies know that it’s much easier said than done.

However, all of this is possible with improved access to information, and the vehicles that improve that access, are the multiple software tracking packages, including MRP, ERP, and CRM.

What Are the Benefits of an MRP System?

MRP is a business acronym for Material, or Manufacturing Resource Planning. Its basic premise is that it tracks the manufacturing, and material requirements, for manufacturers.

It allows companies to better manage inventory, offers a window in their production’s capacity, and tracks production cycle times through work orders.

These work orders include bill of materials that specify amount of material and parts needed, the steps and operations in production, and tracks the work through various stages.

  • Improves inventory management and forecasting.
  • Incorporates bill of materials usage, and streamlines production operations.
  • Improves cycle time analysis.
  • Offers a window to current production capacity.

How Does ERP differ from MRP?

The ultimate in information access for the entire organization, ERP (Enterprise Resource Planning), takes the approach of MRP, and improves upon it.

While MRP systems may concentrate on manufacturing, ERP bridges together a company’s design & engineering, manufacturing, sales & customer service, accounting & finance, and shipping, into one all encompassing database.

  • Tracks ECN’s (Engineering Change Notices) & QCR’s (Quality Control Review) for engineering, and their effects in manufacturing.
  • Offers real time information for all internal departments.
  • Reduces operational and soft costs by improving work processes and procedures.
  • Eliminates redundant and time consuming operations.
  • Improves strategic planning initiatives by tracking resources & objectives.

What is a CRM Software Package?

Last but certainly not least, is the Customer Relationship Management (CRM) packages.

Designed specifically to track the sales and marketing efforts of companies, these software packages provide a window into customer order patterns, credit history, cyclical and seasonal demand within the market, and tracks sales leads and cycle times.

Most importantly, it bridges together a company’s sales, marketing and customer service, into one central database.

  • Better manages marketing and sales initiatives.
  • Improves customer service.
  • Tracks customer purchasing patterns and the market’s demands.
  • Helps in sales account gap analysis.
  • Allows for lower sales cycle times.

When it comes to choosing between these packages, it’s essential to start by writing down the organization’s needs. Each of these has its role, and each plays an important part in improving real time information, reducing costs, and improving service.