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What is the difference between MRP and ERP?

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Answer:

MRP (Material Requirements Planning) focuses specifically on planning what materials are needed, when they should be ordered, and in what quantities to support production or distribution.

ERP (Enterprise Resource Planning) is a broader system that covers multiple business functions — including finance, procurement, manufacturing, HR, and sometimes Supply Chain planning.

Most ERP systems include a basic MRP module. However, these built-in MRP modules often rely on simplified logic (fixed safety stocks, static lead times) and lack the advanced forecasting and optimization capabilities offered by dedicated MRP software.

Modern MRP solutions, like Flowlity, are designed to complement ERP systems — not replace them. They integrate with existing ERPs to enhance material planning with AI-driven forecasting, probabilistic inventory models, and real-time visibility.

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