If you walk into any SME machine shop or fabrication unit in the UK, you will likely find a mix of software packages, complex Excel spreadsheets, and the odd whiteboard. When the business starts to outgrow these manual methods, the conversation inevitably turns to three acronyms: MRP, MES, and ERP.

The problem is that the definitions of these terms have become blurred. Software vendors often use them interchangeably, which makes it difficult for a Managing Director or Operations Manager to know what will actually solve their specific problems on the shop floor.

To make a sensible decision, you need to strip away the marketing fluff and look at what these systems do for the actual flow of work.

Understanding the Three Pillars

At its simplest, these systems deal with three different layers of your business: the planning, the doing, and the managing.

1. MRP (Material Requirements Planning)

MRP is focused on the “What” and “When” of materials. It looks at your sales orders, compares them to your current stock levels, and tells you what you need to buy or make to fulfill those orders.

For a CNC machining or electronics assembly business, a good MRP function prevents the situation where a job stops because you are missing a part. It is a calculation engine designed to keep your inventory lean while ensuring you have enough to keep the machines running.

 

2. MES (Manufacturing Execution System)

While MRP handles the office side of materials, the MES is focused on the shop floor. It is the “How” and the “Now.”

A MES tracks the actual execution of work. It records when an operator clocks onto a machine, how many parts were produced, the scrap rate, and the time taken for setup. If your primary goal is to reduce Work in Progress (WIP) and understand your actual costs versus your estimates, the MES layer is where that data lives.

 

3. ERP (Enterprise Resource Planning)

ERP is the broad umbrella. In theory, an ERP system handles everything: from HR and finance to the MRP and MES functions mentioned above.

The challenge for many UK SMEs is that large-scale ERP systems are often designed for huge corporations. They are frequently heavy on the finance side but weak on the realities of discrete manufacturing, such as managing complex multi-level Bills of Materials (BOMs) or handling the flexibility needed in a sub-contract toolroom.

Which One Solves the “Firefighting” Problem?

Most factory managers we speak with are not looking for “Enterprise Resource Planning.” They are looking for a way to stop the constant firefighting. They want to know why a job is late, where the material is, and which operator worked on a specific batch.

If your delivery dates are slipping and your WIP is piling up, an accounting-heavy ERP won’t help you. You need a system that prioritises the MRP and MES functions: the ability to plan materials accurately and the ability to see shop floor progress in real time.

 

For a business running fabrication or assembly, the priority is usually:

  • Visibility: Knowing exactly where a job is between operation 10 and operation 20.
  • Traceability: Linking materials to works orders without a paper trail.
  • Accuracy: Knowing your true margins based on actual shop floor time, not just a guess.

The Hybrid Approach for SMEs

In the past, you had to choose between a “best of breed” MES and a massive, expensive ERP. Today, the most practical solution for a UK manufacturer is a system that sits in the middle.

You need a platform that handles the essential business tasks (quoting, invoicing, purchasing) but has its heart on the shop floor. It should be easy enough for a machinist to use on a tablet at their station, but detailed enough for the production planner to see the load on the CNC section for the next three weeks.

Where does DynamxMFG fit in?

We built DynamxMFG because we saw too many factories struggling with ERP systems that were too complex, or MRP systems that didn’t talk to the shop floor.

DynamxMFG provides a unified environment that handles your material requirements and your shop floor execution in one place. We focus on the practicalities of discrete manufacturing: managing WIP, ensuring traceability, and giving you the data you need to protect your margins.

By connecting your office to your shop floor, we help you remove the guesswork and keep your production moving without increasing your administrative headcount.

 

If you are unsure whether you need a full ERP or a more focused manufacturing system, book a demo of DynamxMFG and we can show you how we handle the specific challenges of your shop floor.