Best MRP Software of 2025

Here's what we'll cover:

What you need to know about MRP software

What is manufacturing resource planning software?

How to choose the best MRP software for your business

MRP market trends to understand

Manufacturing resource planning software, sometimes called material requirements planning or MRP II software, is the core technology that sets manufacturing applications apart from other types of business software. Software advisor, Bryan Dengler, explains that an MRP offers, “effective planning based on the materials and labor needed, along with managing the shop floor stations and machines involved in the process. All before production starts.”

This added functionality also adds complexity, both in implementation and in operation. We wrote this buyer’s guide to help buyers navigate the maze of top MRP solutions.

What you need to know about MRP software

Material requirements planning (MRP) software is a tool designed to manage manufacturing processes by planning production schedules, inventory levels, and cost tracking. It helps businesses ensure timely material availability, optimize inventory levels, and improve production efficiency through demand forecasting and resource planning.

According to our experienced software advisors, Bryan Dengler and Saul Sanchez, if you’re tracking materials through the manufacturing process into the finished product, you should consider an MRP system over manufacturing inventory management software.

"These platforms might seem similar, but selecting the wrong type can hinder your operations," Sanchez points out. 

On the other hand, if you need to manage stock counts of finished goods or repetitive manufacturing operations, a standalone inventory system might be a better fit.

To give you an idea of the market, we have 190 different MRP products on our site, and we’ve published 1,114 reviews for 82 products in the past year alone. Half of user reviews (50%) come from small businesses with 50 or fewer employees, and 30% have 51 - 200 employees. Automotive is the largest industry represented, followed by construction. [1]

First-time buyers should begin their evaluation of potential solutions by considering factors such as budget, number of users, specific use cases, and necessary integrations. It's crucial to consult with stakeholders to develop a list of key questions that will help you assess systems based on your unique requirements. Our software advisors offer the following questions to get you started:

• Does the tool support tracking variants from the bill of materials (BOM), comparing actual to estimated costs?

• Can the system track labor and detailed components for a comprehensive view of the total cost of the items you manufacture?

• How does the software handle demand forecasting and production planning?

• Can the solution support procurement and supplier management?

• Does the system integrate with the other systems currently used?

Most MRP products on the market are priced on a “per month” basis, and their entry-level pricing plans average around $689 per month for 1 - 20 users. Premium and advanced system subscriptions start at around $2,387 per month. [2]

With nearly 200 products to choose from, selecting the right material requirements planning software can be a complex and overwhelming task. This guide will walk you through the essential components of MRP software and provide step-by-step instructions for choosing the best solution for your business.

If you would prefer to speak with one of our experienced MRP software advisors like Dengler and Sanchez, schedule a call or start a chat with us.

What is manufacturing resource planning software?

“If you fail to plan, then plan to fail” is equally true in sports and manufacturing. Manufacturing MRP software was the first attempt to bring software tools, such as a materials forecast, to formal manufacturing techniques. These systems answer the four basic questions: What do I make? What do I buy? When do I buy? When do I make it? 

MRP is a subset of enterprise resource planning (ERP). It covers the period of time from when a product is conceived, the raw materials are identified and procured, and resources are identified to when production steps are planned. At that point, manufacturing execution systems (MES) take over.

ERP combines and extends the tools of an MRP and MES system. Whereas MRP and MES focus on planning for individual jobs, ERP is concerned with a manufacturer's entire chain, from buying raw materials to delivery of finished goods to the customer, over time. In other words, MRP software focuses on increasing efficiencies throughout a job, and ERP takes a wider and longer view of overall jobs from end to end.

Basic functions include:

• Inventory control and procurement

• Production forecasting

• Materials costing

• Procurement scheduling

• Process scheduling applications

Materials costing is typically the core function. It determines what is made versus what is bought. Materials costing works with the inventory system to check quantities on hand and lead times for parts that must be ordered as well as production logs to determine lead times for any sub-assemblies that must be fabricated.

Inventory tracking in Fishbowl

MRP suites may also include a module for configure-price-quote (CPQ) functionality, typically used by sales teams to provide quick and accurate custom quotes for built-to-order operations.

Manufacturing resource planning systems are adaptable to many different philosophies but favor lean manufacturing and just-in-time (JIT) systems. It can support all modes including process, make-to-stock (MTS), assemble-to-stock (ATS), assemble-to-order (ATO), make-to-order (MTO), and engineer-to-order (ETO). However, planning and inventory control functions are generally more important to the “to order” modes due to the time constraints that these modes impose.

MRP ERP systems are generally run on-premise. Small shops may have only a single-user system or a small network, while larger organizations may have networks with workstations throughout the facility. Manufacturers have been slower to adopt cloud-based materials requirements planning programs, but there is an emerging group of vendors offering a cloud program.

How to choose the best MRP software for your business

Step 1: Determine the type of buyer you are

The first step in evaluating programs is determining what type of buyer you are. Over 90 percent of buyers fall into one of these three groups:

• Full-suite buyer. These buyers value the seamless integration of data and processes that comes from having one system for all functions. For example, they would prefer a full-suite system for estimating, work-in-progress management and accounting that can automatically turn an estimate into a budget for project management and then match invoices to project status and allocate job costs. These buyers favor complete suites like Oracle, SAP, Sage ERP, or Microsoft Dynamics.

• Departmental buyer. Specialists in one function, such as materials costing, may value the feature depth of best-of-breed solutions designed for their function. These buyers may need specific functionality, like the ability to interface with a specific departmental procurement system.

• Small manufacturer. Small organizations often have limited budgets and fewer IT resources available. In many cases, they may be deciding between a new system and a new piece of equipment. These businesses need cost-effective small business MRP solutions that are easy to implement and use. Others may be interested in evaluating free MRP software, which is typically offered in an open-source model. Some will prefer full-suite systems, while others may just want one application, such as resource planning or production inventory control.

Step 2: Understand the benefits and potential issues

MRP systems, whether stand-alone or incorporated in an ERP system, offer distinct benefits over less formal production planning systems. These include:

• Better planning and resource allocation. One of the greatest strengths of ERP MRP systems is better data and greater insight into the actual costs of inventory, people, and equipment, and the actual time costs for each step of the planning and production process. 

• Greener operations. Better planning and tracking leads to operations that generate less waste and less scrap, reducing environmental impact for those firms. Additionally, as more documentation is kept electronically, it reduces waste paper and cuts paper costs.

• Integration with accounting systems. The basic purpose of an MRP ERP system is to decide what to buy and when. Integration with general inventory makes it easier to track inventory costs and determine lead times. The accounts receivables system handles ordering and payment.

Material requirements planning as a discipline and the software, in general, have some limitations that can cause problems if not addressed. Planning is based on what should be possible; it ignores current limitations. Inventory and resource planning are based on the assumption that everything is idle. Care must be taken not to over-allocate resources.

Inventory levels are an area of concern. Inventory levels on key items tend to have two extremes: either too much is carried in inventory, tying up valuable capital and credit, or too little is carried in inventory, requiring stock acquisition and delaying production. These systems are supposed to solve this particular problem, but if the model does not adapt to changes in the inventory supply chain, inventory levels on key items will tend to one of the two extremes.

• Problems also develop over time. The bills of materials, work orders, and schedules are based on the assumptions made when the program is first installed. If assumptions are not updated to reflect changes over time as costs fluctuate and productivity changes, the estimates from the MRP will increasingly diverge from the actual costs.

• There is also a scope issue. MRP planning is based on particular jobs. While it can increase the efficiency of those jobs, it is possible that over the course of many jobs, the costs will add up. For example, if three jobs are costed that each uses four pounds of salt, the system will miss the discount available if 12 pounds of salt are purchased all at once. Among other things, ERP systems expand the scope to solve this issue.

If you need guidance, you can chat online now with an advisor or schedule a phone call. In just a few minutes, your advisor will help you identify a shortlist of options that align with your software requirements.

MRP market trends to understand

While you evaluate programs, make sure you consider these market trends:

• Advanced planning techniques. As the cost of computing power and storage decreases, more powerful planning models are available which yield better results.

• Harmonization. For many years, the goal for MRP and ERP was a single corporate-wide data store. However, that thinking is now evolving to strategically selected systems for specific purposes, sharing information as required.

• Use of mobile devices. Until recently, most system designers assumed that the users would be working from a fixed location. Any information had to be entered, remembered or written down and brought to the computer. The new trend is to have mobile systems in the warehouse or shop floor. Operators enter pertinent information directly into mobile systems without having to go to a permanent workstation.

• Vendor consolidation. Large vendors like Oracle and Microsoft are buying niche vendors to round out manufacturing application libraries. With so many vendors and products available, this trend will continue for the foreseeable future.

• Intelligent inventory tagging. One-dimensional bar coding for equipment and inventory tagging is well-established in manufacturers' systems. Recent systems use radio frequency identification (RFID), which can be read remotely to check inventory levels and confirm equipment availability. Other systems use two-dimensional bar codes, which contain descriptive information in addition to an identifier like a part number.

• Functional integration with ERP. While there are still numerous stand-alone systems, generally the functions are part of a larger ERP system that is broader in scope than just a facility.

Our contributors

Author

Olivia Montgomery is an associate principal analyst at Software Advice, covering program and project management with a focus on the strategic alignment of IT and operations to optimize digital transformation. Drawing from her experience as a former IT PMO leader and her background in humanities studies, Olivia delivers data-driven insights that empower business leaders to drive business growth through projects.

Olivia’s research and analysis is informed by nearly 200,000 authentic user reviews on Software Advice and over 10,000 interactions between Software Advice software advisors and project management software buyers. Olivia also regularly analyzes market sentiment by conducting surveys of project managers and PMO leaders so she can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services.

Her expertise is featured in Forbes, Bloomberg, CIO Dive, and TechRepublic, as well as in podcasts, such as The Digital Project Manager. Recently, she presented her research on emotional intelligence (EQ) and decision-making at PMI's Global Summit conference, shedding light on the crucial role of EQ in driving project success. When she's not analyzing tech trends, you can find Olivia horseback riding or re-watching Jurassic Park.

Editor

Caroline Rousseau is a senior content editor at Carpterra.

A former content analyst, Caroline has, for the past five years, built, written, and edited research reports about technological trends, opportunities, and challenges with an SMB audience in mind. Her content has been featured in French Tier 1 media including Le Monde, L’Express, and Le Figaro, among other publications.

Her previous experience as a graphic designer, translator, and LQA specialist in various industries converged into a skill set that allows her to create compelling content about today’s business matters. Caroline’s personal interests include literature and art and she has a passion for Albert Camus, graphic novels, and drawing.

Advisors

Bryan Dengler is a senior advisor. He joined Software Advice in 2022, and is based in Austin, TX.

As part of the software advisor team, Bryan helps professionals from a wide range of industries who are seeking accounting, project management, manufacturing, learning management, and supply chain software. He provides a shortlist of personalized technology recommendations based on budget, business goals, and other specific needs. 

Bryan’s favorite part of being a software advisor is knowing he’s made a valuable difference in a buyer’s life with each advising session he holds.

Saul Sanchez is a senior advisor. He joined Software Advice in 2019, and is based in Austin, TX. 

Saul works directly with small business leaders to connect them with best fit software providers. He assesses the technology needs of small businesses seeking a wide variety of software, including business intelligence, inventory management, manufacturing, and supply chain tools. Through one-to-one conversations, Saul provides a shortlist of potential matches. 

His favorite part of being a software advisor is experiencing a buyer’s relief when they discover how much time and energy he’s saved them by helping narrow down the list of many possible options on the market.

Sources

1. Software Advice advisor call notes: Findings are based on data from telephonic conversations that Software Advice’s advisor team had with businesses seeking MRP tools. For this report, we analyzed phone interactions from December 13, 2023, to December 19, 2024. Read the complete methodology.

2. Software Advice software pricing data: Only products with publicly available pricing information and qualified software products within the category, as of January 2025, are included in the pricing analysis. Read the complete methodology.