Material Requirements Planning (MRP) with ERP is a strategic approach that unites planning and control processes in a single center, developed to enable manufacturing enterprises to use their resources more efficiently. By evaluating critical data such as production plans, inventory levels, procurement processes, and lead times through the MRP system, the goal is to prevent costly issues such as material shortages or excess inventory.
MRP with ERP is not merely a tool that calculates which materials are needed; it is an integrated management model covering the entirety of production processes. MRP systems working in conjunction with an ERP infrastructure provide businesses with a more controlled, predictable, and sustainable production structure by simultaneously analyzing planned and actual production data.
What is Material Requirements Planning (MRP)?
Material Requirements Planning (MRP) is a systematic planning approach that calculates which materials are needed, when, and in what quantity based on a company’s production plans. The primary objective of MRP is to prevent excess inventory and material shortages simultaneously while ensuring that production continues uninterrupted.
For manufacturing enterprises, MRP is not just an inventory calculation tool; it is an inseparable part of production planning. Thanks to a properly functioning MRP system, firms can take control of their production processes by procuring the necessary raw materials and semi-finished goods at the right time.
What Does MRP Do?
MRP systems consolidate complex relationships within the production process under a single planning logic. Its primary functions include:
- Automatically calculating material requirements based on production plans.
- Preventing unnecessary procurement by considering current stock levels.
- Reducing production downtimes caused by material shortages.
- Planning procurement and production lead times realistically.
Consequently, production, procurement, and inventory management processes become planned and predictable rather than reactive.
Which Data Does MRP Utilize?
For an MRP system to produce healthy results, the following fundamental inputs are required:
- Production plans and customer orders.
- Bill of Materials (BOM).
- Current inventory levels.
- Open work orders.
- Procurement and supply lead times.
By evaluating this data together, the system calculates when a material should be ordered or dispatched to production.
Why is MRP Alone Insufficient?
While MRP is a critical component of production planning, it remains limited when operating in isolation. MRP systems that are not integrated with capacity status, financial data, and actual production results:
- Operate with outdated data.
- Create a disconnect between procurement and production.
- Lead to late detection of variances between planned and actual production.
Therefore, in modern business, MRP is positioned within and integrated with ERP systems.
The Integrated MRP with ERP Approach
Modern ERP systems offer an integrated structure that manages MRP alongside production planning, inventory management, procurement, and finance from a single center. This approach ensures:
- Production plans are instantly reflected in the MRP.
- Inventory and procurement data are updated in real-time.
- Comparisons between planned and actual production can be made.
Canias ERP adopts this approach by handling MRP processes in integration with production planning and operational data. Thus, material planning transforms from a theoretical calculation into a management tool aligned with the realities of the production floor.
The Direct Link Between MRP and Production Planning
There is a reciprocal and mandatory relationship between MRP and production planning. While production planning defines when, how much, and with which resources the business will produce; MRP calculates which materials, at what time, and in what quantity must be procured based on these plans.
The flow operates as follows:
- Customer orders or demand forecasts are generated.
- Production plans and work orders are defined.
- MRP is executed based on the production plan.
- Procurement, inventory, and production processes are shaped by MRP outputs.
This structure ensures that production is planned not only according to capacity but also according to realistic material availability. Otherwise, production plans that appear feasible on paper will fail on the field due to material shortages.
Why is an ERP-Integrated MRP Essential?
Traditional or independent MRP applications fall short in the face of today’s production dynamics. The primary reason for this is that MRP cannot function in a vacuum; it must operate in tandem with production, purchasing, inventory, finance, and operational data.
MRP systems that are not integrated with an ERP frequently encounter the following problems:
- Outdated production plans
- Manual or delayed inventory information
- Purchasing lead times that are incompatible with production
- Late detection of variances between planned and actual production
An ERP-based MRP approach eliminates these issues through centralized data management. Thanks to MRP positioned within the ERP:
- Production plans are updated instantly.
- Inventory and purchasing data are used in real-time.
- Work orders automatically match with material requirements.
- Financial impacts (inventory costs, purchasing budgets) become visible.
This integration transforms MRP from a mere calculation tool into an active control mechanism for production management. At this point, Canias ERP handles MRP in an integrated manner with production planning, logistics, and operational processes. Consequently, material requirements are managed not just based on planned production, but by taking actual production, capacity status, and procurement realities into account.
As a result, an ERP-integrated MRP offers businesses a strategic framework providing:
- More controlled production
- Lower inventory costs
- More reliable delivery dates
- Higher operational efficiency
MRP Processes with the Canias ERP Approach
In the Canias ERP approach, MRP is not treated as an independent module or a purely inventory-focused calculation mechanism. In Canias, MRP is an integrated management process operating on the same data model as production planning, logistics, purchasing, and financial processes.
The foundation of this approach lies in production being a dynamic structure constantly fed by actual data rather than just “planned” figures. MRP processes in Canias ERP:
- Are directly linked to production plans and work orders.
- Account for current stock levels and open orders.
- Calculate purchasing and lead times realistically.
- Make financial impacts (stock costs, purchasing budgets) visible.
In this way, MRP answers not only the question of “How much material is needed?” but also: “Is this production plan truly feasible?” The production-oriented architecture of Canias ERP turns MRP from a theoretical planning tool into an operational control and decision-support mechanism.
How Does MRP Work in Canias ERP?
The MRP process in Canias ERP operates within an end-to-end workflow stretching from production to purchasing. The process progresses automatically through data defined in the system, without the need for manual intervention.
The working logic of MRP within Canias ERP consists of these summary steps:
Production Plan and Work Orders
Production plans are created in line with customer orders or demand forecasts. Work orders are defined through these plans, and each work order includes the operation and material requirements of the product to be manufactured.
Bill of Materials (BOM) and Recipes
Defined BOMs and recipes for each product are the primary reference points for MRP. Thanks to multi-level BOM structures, requirements for raw materials, semi-finished goods, and sub-components are calculated in detail.
Inventory and Open Order Control
When MRP is executed, current stock levels, open purchase orders, and open work orders are considered. Thus, the system only plans for materials that are truly needed.
Purchasing and Procurement Planning
Purchasing suggestions are generated for missing materials. Procurement periods and delivery dates are calculated to be compatible with the production plan, and purchasing processes are triggered automatically.
Comparison of Planned vs. Actual Production
Using actual data from the shop floor, planned material consumption is compared with actual consumption. Deviations are detected at an early stage, allowing plans to be revised.
Through this structure, MRP in Canias ERP operates in a way that is:
- Dynamic, not static
- Based on real data, not estimates
- Fully integrated, not disconnected
Strengthening MRP with Real-Time Production Tracking
The greatest weakness of traditional MRP systems is that they work with planned data and fail to reflect the actual situation on the ground. When downtime, scrap, speed changes, or unexpected material consumption on the production floor are reflected late in the system, MRP outputs quickly lose validity.
The Canias ERP approach eliminates this problem by feeding MRP with real-time production tracking. Thanks to instantaneous data from the field:
- Planned and actual production quantities are compared.
- Actual material consumption is monitored.
- Deviations are detected early.
- MRP calculations are updated dynamically.
MRP Usage in Sectoral Production Scenarios
Not every production model requires the same planning approach. The true value of MRP emerges to the extent that it can be adapted to different scenarios. Canias ERP supports these differences with a flexible MRP setup that can be configured according to sectoral needs:
- Make to Stock (Mass Production): Stock levels, consumption rates, and reorder points are constantly monitored by MRP to ensure continuous production without creating excess inventory.
- Make to Order: MRP operates based on customer orders. Materials required for each order are planned separately, and purchasing processes are shaped accordingly.
- Project-Based Production: In projects with long lead times and multi-level BOMs, MRP works integrated with project schedules to plan material requirements in stages.
- Mixed Production Models: If a business performs both make-to-stock and make-to-order production, MRP manages both structures within a single system.
Strategic Gains of Using MRP with Canias ERP
MRP positioned within Canias ERP provides businesses with not just operational convenience, but measurable strategic advantages:
Reduced Inventory Costs:
Unnecessary stock purchases are prevented, and capital is used more efficiently.
Shortened Lead Times: Downtime caused by material shortages is reduced, making delivery dates more reliable.
Predictability in Purchasing: Procurement needs can be foreseen, minimizing urgent purchases and extra costs.
Transparency and Control: Planned and actual production data can be monitored instantly.
Scalable and Sustainable Structure: Even if production volume or product variety increases, the MRP system easily adapts to this growth.
All these gains position MRP in Canias ERP not just as a planning function, but as a strategic production management tool that increases competitive power.