Moving from MRP to ERP: A Step-by-Step Guide for SMEs

Picture a mid-size metal fabrication shop. For years, the production floor has relied on an MRP (material requirements planning) program to track raw materials and plan orders. Accounting runs on a separate program. Sales orders are logged on paper. At month-end, the accountant, the production supervisor, and the sales clerk sit around the same table and try to reconcile three different sets of numbers by hand. This scene plays out in manufacturing firms across Turkey. ERP (enterprise resource planning) software exists precisely to solve this problem: it brings inventory, production, accounting, and sales into a single system.

MRP software does one thing well. It answers the question: what materials do we need, how much, and when should we order? That is its job, and it does it reliably. But it does not talk to the rest of the business. ERP connects the warehouse, the factory floor, the accounts department, and the purchasing desk under one roof. When a sales order is entered, stock levels update automatically, the production schedule reflects the demand, and the cost records adjust accordingly. You stop entering the same information into two or three separate programs. That said, this transition is not a simple upgrade. It means rethinking how the business operates from the ground up.

The first stage is planning. Before selecting any software, the company needs to decide which parts of the business will be covered. Is it just inventory and production, or will accounting and purchasing be included from the start? Without a clear answer, the project drifts. A realistic timeline is equally important. For a small or medium-sized firm, the full transition rarely takes less than six months, and a year is common. Without support from a certified reseller or implementation partner, the project is very difficult to manage internally. The software vendor should provide not just the program itself but also installation support, training, and a contact person for the first months.

The second stage is data preparation, and this is where most projects lose time. The stock codes, product structures (bills of materials), and supplier records stored in the old MRP system need to be transferred to the new one. In practice, these records are rarely clean. Years of use leave behind duplicate stock codes, incomplete product descriptions, and outdated prices. Moving dirty data into a new system means the new system starts with errors on day one. Cleaning this data can take two to three months on its own. That time must be built into the project plan from the beginning, not discovered halfway through.

The third stage is the pilot. Rather than switching the entire company over at once, it is far safer to start with one department or one module. Running only the warehouse and purchasing modules in the new system while keeping accounting and production in the old MRP program for a few more months is a practical approach. The team learns the new software in a controlled environment, and mistakes surface in a small area where they can be corrected before they spread. During this parallel-running period, the same data goes into both systems. That is extra work, and it is tiring. But it protects the business from the kind of errors that can take weeks to untangle.

The fourth stage is rollout. Once the pilot runs cleanly, the remaining departments are brought onto the system one by one. The accounting module goes live, then sales, then purchasing. Each module requires its own training sessions and testing period. Staff resistance tends to peak at this stage. Comments like ‘the old program was simpler’ or ‘I cannot learn this’ are common. These reactions should be taken seriously rather than dismissed. Repeating training, walking people through the steps patiently, and keeping the software vendor’s support line active during the first weeks all help. The visible backing of the business owner or general manager also makes a significant difference.

Before committing to the transition, ask yourself a few practical questions. Which problem in the current MRP setup costs the most time each month? How many hours does month-end closing take, and how many people are involved? How often do stock counts reveal errors? The answers show what the new system will actually fix. On the budget side, honesty matters: software licences, installation fees, training, and first-year maintenance add up to a real investment. But the cost of staying with the current setup — the hours spent reconciling records, the stock errors that lead to production delays, the month-end chaos — is also a real cost, even if it does not appear on any invoice. Before deciding, speak with at least two or three different vendors, ask for reference visits, and talk to firms of similar size that have already made the switch.

This article was originally written in Turkish by Gökhan MERCANOĞLU on May 28, 2001 and has been automatically translated into English and other languages using machine translation.


Success in customization management projects depends less on initial excitement and more on sustainable usage discipline. Go-live is not the end; it is where real learning begins. When the organization measures, corrects, and owns the process, technology becomes management capacity rather than a mere investment.


Gökhan Mercanoğlu
ERP ve Kurumsal Yazılım