icon

Top 6 differences between ERP and GRP

English

24 May 2020

The ERP and GRP systems focus on different stages of a production. The first one focuses on every stage of product life cycle (manufacture, storage and selling). And the second one focuses on the group level organising, the internal coordination and the assets operation. But what does that mean?

Enterprise resource planning

ERP is an acronym for “Enterprise resource planning“. This is an integrated computer-based system used in the management of head business operations in real time. It’s referred to as a category of business management software. Making possible the collecting, storage, management and interpretation of data within the business activity thanks to a suite of integrated applications.

This system provides a consolidated and periodical update of the processes that happen in the business. Keeping track of every resource (cash, raw materials, production capacity…) and the status of business fidelity (purchase orders, payroll…).

The applications integrate different departments within the company, such as: manufacturing, purchasing, sales, accounting… they all provide the data that facilitates the functioning circulation of the business. 

erp system

IT investments have become the largest category of capital outlay in the USA, for example. This resource planning system integrates different managerial systems that facilitate error-free transactions increasing the company’s efficiency.

Nevertheless, developing this kind of system diverge from traditional system development. These run on a type of computer hardware and network configurations, using a database as an information repository.

At its most basic level, this software can integrate different functions into one complete system to simplify processes and information across the entire company.

Government resource planning

GRP stands for “Government resource planning“. These systems are particularly needed for government-driven business groups and integrate office automation system for them.

This kind of software is designed for the unique requirements of public financial management, where the budget is the legal realisation of government intentions. The structure of the software, even the core algorithms and main interfaces, resemble.

Private or public, both systems are used to improve productivity and the performance of businesses. The comparison of private vs. public of the softwares implementations show that the main factors influencing success in the public sector are mostly cultural.

For the management of a business, they must focus on optimising their assets when it comes to investment information (planning, decision, budget…) and the effect is to implement a new kind of strategy in order to manage these operations.

data computer system erp gap

Top 6 Differences

The management of businesses are different in respect of group and individual enterprises. On the basis of real-time data integration, these systems operate in order to analyse data.

The architecture of these softwares are based of services and the easiest way to distinguish these 2 types of systems are through the following points:

  1. GRP systems were designed completely for governments and the software is suitable for the pubic sector only, while ERP systems were at first designed for private enterprises and sold across vertical industries, including governments.
  2. GRP softwares sellers use both government and public-sector terminology, while ERP software sellers use private sector terminology such as “customers” and “supply chain management”.
  3. GRP softwares are designed to focus on government and purchase configurations were the primary mechanism of meeting government needs, while ERP‘s purchase code tailor to meet distinctive government needs.
  4. GRP softwares sellers designed open systems for financial sustainability, while ERP seller lean towards to supporting the legacy of technology and proprietary systems to lock governments into their softwares.
  5. GRP software sellers optimise the performance processes for the context of governments, while ERP sellers depend on third parties for their application.
  6. GRP softwares were designed with budget consciousness built for certain kinds of modules with integrated commitment reckoning, while ERP softwares have added more commitment reckoning and most modules outside financials are not budgeted at all.
logo
You can also follow us in
social media
Linkedin
You can request a custom quote for your company
Are you looking for a
specific topic?
Contact us

Comments (0)

There are no comments yet. Be the first!

Leave a comment

Latest News

The current day-to-day news about the logistics world with our articles.

Supply Chain: Responsible Targets 2022

Let’s start by technically defining what a supply chain is: “it is the set of activities, facilities and means of distribution necessary to carry out the entire sales process of a product” according to Economipedia. In other words: the supply chain a is mix of different activities within an organization in order to convert raw […]

3 Reading min

Read more

5 keys to master ecommerce

Ecommerce is a booming business and there are millions of people who want to participate in the sector. What sets it apart from traditional businesses is the fact that anyone can do it at home. However, there is more than meets the eye when it comes to running a successful ecommerce store. There are many […]

4 Reading min

Read more

Reverse logistics examples in 2022

Reverse logistics is a subset of supply chain management that encompasses the entire reverse process. In retail, this typically involves the sale of used or returned goods at a discount and their subsequent resale. Reverse logistics also takes into account the packaging, shipping and storage of returned products until they can be resold or recycled. […]

4 Reading min

Read more

How to optimize the safety stock?

Safety stock is an important part of the business, but it also requires costs. A good alert system is necessary to minimize stock loss and avoid losses when inventory is below the optimal level. Efficiency allows us to evaluate cost reduction opportunities and optimize our safety investment by maximizing ROI. Safety stock is important, but […]

4 Reading min

Read more

Raw material inventory: what does it refer to?

We know that raw material is the set of elements, inputs or basic and indispensable materials required by the company for its transformation, so that we can obtain a finished product from it. That is to say, the raw material inventory is the basic food in the productive process of the elaboration of a final […]

3 Reading min

Read more

Logistics and the importance of inventory control

What is an inventory? We know that an inventory is a specifically organized and detailed, ordered and valued list of the elements that make up the assets of a company. Now the main objective of inventory control is to guarantee the availability of a product required by a customer when and how the customer needs […]

3 Reading min

Read more

5 examples of the global supply chain

We will try to define what a global supply chain is, also called a global supply chain. Global supply chains are varied, dynamic and complex organizational structures that are constantly evolving in order to adapt to the requirements of the global market. They are also described as global production networks or global value chain. Consequently, […]

3 Reading min

Read more

Raw materials in 2022

We begin by defining raw materials as materials that we obtain directly from nature, i.e., natural resources that are useful and valuable to man. Raw materials can be of the following origin: animal (wool, silk, fur), vegetable (plants, seeds, wood), mineral (sand, marble, iron) and fossil (natural gas, oil, coal). Raw materials are all those […]

2 Reading min

Read more

Last mile delivery in logistics: what is it?

Last mile delivery refers to the final transportation of products, goods and even people. This term has its origins in telecommunications, to describe the difficulty of connecting homes and businesses to the main telecommunications network so the term Last Mile Delivery has been coined to refer to the delivery of goods or services that the […]

3 Reading min

Read more

3 benefits of Logistics Management 

By definition, logistics is a set of methods and procedures necessary and designed to achieve the organization of a company, in order to carry out its goals or objectives. We can say that logistics management is a fundamental part to achieve efficiency in the supply of products or merchandise, from its point of origin or […]

4 Reading min

Read more

Supply Chain: Responsible Targets 2022

Let’s start by technically defining what a supply chain is: “it is the set of activities, facilities and means of distribution necessary to carry out the entire sales process of a product” according to Economipedia. In other words: the supply chain a is mix of different activities within an organization in order to convert raw […]

3 Reading min

Read more

5 keys to master ecommerce

Ecommerce is a booming business and there are millions of people who want to participate in the sector. What sets it apart from traditional businesses is the fact that anyone can do it at home. However, there is more than meets the eye when it comes to running a successful ecommerce store. There are many […]

4 Reading min

Read more

See all articles