EXPLAINER

MRP vs ERP - what's the difference?

MRP and ERP are often used interchangeably, but they solve different problems. MRP is focused on the manufacturing supply side: bill of materials, procurement, work orders, and inventory. ERP is the broader system covering finance, HR, CRM, and operations across the whole company. The right answer for many small and mid-size manufacturers is a focused MRP system that integrates with the accounting tool they already use, not an end-to-end ERP rollout.

What MRP does

MRP turns demand (sales orders, forecasts) into a procurement and production plan: which materials to buy, when to issue work orders, how to allocate stock across locations, and where bottlenecks will appear. Modern cloud MRP systems like FabHub also handle the full lifecycle: BOM management, purchase orders, work orders with operations and yield, quality checks, rework loops, sales fulfillment, and stock takes.

What ERP does

ERP is a single integrated suite that covers finance (GL, AP/AR), HR/payroll, CRM, supply chain, and often manufacturing. The promise is one source of truth across the company; the cost is implementation time, customization, and lock-in. Mid-market manufacturers often spend 12 to 24 months and 6 to 7 figures rolling out an ERP.

How they overlap

Both touch inventory, procurement, and BOMs. The difference is depth vs breadth. ERP covers more functions but typically with a thinner manufacturing layer; MRP goes deeper on production-specific workflows. Most modern MRP tools integrate cleanly with accounting, so you do not lose finance data by choosing MRP.

Which one do you need?

If your gap is manufacturing visibility - you have spreadsheets for BOMs, scattered procurement, and stock that does not reconcile - start with MRP and integrate it with your existing accounting. If your gap is fragmented finance/HR/CRM systems and manufacturing is just one piece, ERP makes sense.

How FabHub fits

FabHub is a focused, cloud-native MRP. It connects BOM, procurement, production, quality, and inventory in one workflow, integrates with accounting platforms, and deploys in days rather than months. See the features and pricing pages for details.

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