What MRP generally does
Material requirements planning starts with demand and the materials needed to fulfil it. Depending on the system and configuration, it may use bills of materials, inventory, orders, lead times and planned dates to calculate what is needed and when.
The usefulness of the result depends on accurate bills of materials, quantities, units, stock and planning assumptions. A missing component or an unreliable lead time can make a plan misleading. A planned order is not the same as a confirmed supplier delivery.
What ERP generally covers
ERP is a broader category of software for coordinating business processes and shared information. A particular product may include purchasing, inventory, finance, manufacturing, sales or other areas. MRP can be a component of an ERP suite, but not every product labelled ERP includes every planning capability.
For an engineering business, the useful question is what the product actually does with job requirements and material information, rather than whether its name sounds comprehensive.
A practical comparison
Use the terms as a starting point for discussion, then ask to see each workflow with a real example from your business.
| Question | MRP focus | ERP focus |
|---|---|---|
| Main concern | Material needs and timing | Connected business processes |
| Typical inputs | Demand, BOM, stock and planning assumptions | Depends on product: jobs, stock, purchasing, finance and more |
| Check in a demonstration | How are requirements and timing calculated? | Which processes and integrations are actually included? |
Choose based on the workflow you need
A workshop may first need reliable job requirements and stock visibility. A manufacturer with complex production scheduling may also need detailed planning, capacity or forecasting. Ask how exceptions, existing orders, partial receipts and changes to a drawing are handled, and who approves each action.
Recon's development build supports job materials, stock allocation, shortage review and procurement. It should not be presented as a complete production scheduling or demand forecasting system; supplier lead times are purchasing information rather than a demand forecast.
Questions for a software demonstration
Bring a small, real-world planning scenario with information removed or anonymised: a job requiring several parts, one item shared with another job, a partial stock balance and an incoming supplier order. Ask how the system distinguishes reserved stock, unallocated stock, draft supply and physically received goods.
If timing is important, ask what the planning calculation assumes about lead times, calendars, capacity and supplier confirmation. A system may display a supplier lead time without performing demand forecasting or capacity scheduling. Those are separate capabilities that should be demonstrated explicitly.
Also ask how changes are controlled. If a BOM revision changes after a supplier has quoted, can the team see the approved source used for the offer? What happens to an existing requisition or order? The answers often reveal more about fit than a broad ERP or MRP label.
How planning assumptions affect an example
Imagine a manufacturer needs 100 finished assemblies and each assembly requires two bearings. A simple bill of materials indicates a gross requirement of 200 bearings. That is only the beginning: the planner must also understand stock on hand, reservations, incoming orders and the dates and locations associated with those quantities.
If 80 bearings are recorded on hand but 20 are already reserved for another job, the available amount may be 60 rather than 80. An incoming order might cover some of the balance, but its timing and destination need review. Draft supply should not be mistaken for goods already available to issue.
More advanced planning can also consider production schedules, lead times, lot sizes and other rules. The exact calculation depends on the product and its configuration. Ask a supplier to explain how it handles each input and how a user can inspect or challenge the result.
Recon's documented development workflow supports engineering requirements, stock allocations and review of uncovered needs. The documentation does not establish general lead-time demand forecasting or production capacity scheduling. A business requiring those capabilities should verify them separately rather than inferring them from the term ERP.
Frequently asked questions
Can ERP include MRP?
Yes. Some ERP products include MRP capabilities, but the scope and planning methods vary by product.
Further reading
Explore how Recon connects engineering requirements with purchasing in the procurement workflow, or request a demonstration.