Free vs. paid MRP software - which is best for my manufacturing business?

Material requirements planning (MRP) software aims to maximise efficiency while minimising cost.

Free MRP software offers cost-effective, usually open-source solutions to support businesses with stock control  and production processes. However, many free options only offer basic features and limited scalability, and often rely on community support.

Manufacturers should carefully consider their unique needs and strategy before choosing a free MRP system; they may provide the ideal, cost-effective starter option, but you need to consider whether it will also meet your needs in the medium to long term. In this guide we cover information on free solutions and when a paid package may be a better fit for your business.

What is free MRP software? 

Free MRP software promises cost-effective planning solutions with flexible features. There are several models for free MRP solutions, but they come with a range of limitations:

• Freemium: Some products that advertise as free are, in fact, ‘freemium’ versions of the paid-for software. These are often less advanced and may have limited features.
• Trial: Others are advertised as free but only as part of a trial. For example, Katana offers a limited 14-day trial.
• Open source: Some solutions give you access to the source code, allowing you to customise and modify to suit your needs. These versions will require the support of a developer to adapt the software and maintain it in the future, which can involve significant costs.
• Excel: A popular alternative, particularly for smaller businesses; you can customise spreadsheets to create basic MRP functionality.  However, this comes with some disadvantages – minimal automation, lack of scalability, and the inability to handle complexity. Consider also that a complex Excel document comprising many sheets can be time-consuming to update and vulnerable to errors. Read more about Excel vs MRP software.

What can free MRP software do? 

For smaller businesses or start-ups that do not require advanced features, free MRP software offers the opportunity to get up and running and benefit from increased efficiencies. Basic features should enable managers to get a general view of production:

• Production scheduling
• Stock control: raw materials, work-in-progress (WIP), and finished goods
• BoM management
• Machine downtime
• Supplier management
• Unproductive working hours and scrap levels
• Costs for accurate quote to invoice calculations

Additional modules or apps beyond the basic features are generally separate from the free software package. Hosting, training, and implementation support are likely to incur extra costs.

Things to consider when evaluating free MRP software

Selecting the right system for your business is critical. When evaluating free MRP software, it is essential to consider various factors to ensure the solution meets your requirements with no unexpected limitations.

Key things to think about:

1. Cloud or on-premise solution - Some free MRP software offers both options but may limit the number of users. Cloud-based systems are accessed through a website browser and offer increased flexibility. Updates are usually provided and keep the software working efficiently. However, they will likely cost more; additional hosting and support generally aren’t free.
2. Unique business needs - There are many free MRP options, some more suited to less specialised or specific industries. Basic modules may not be workable for complex production processes and may have restrictions on features, so careful research is essential. 
3. Customisation - Open-source MRP software can be more easily customised to suit your needs but requires time and expertise. Often, there are community users who share hacks and source codes to enhance usability. However, open source can be less secure, and if issues occur, they can be hard to fix. Check software customisation options carefully.
4. Business size and ambition - Free MRP offers small businesses great starter options but you also need to consider your plans for growth – can the software scale with your business, and whether there will be additional future costs.

What is the best free MRP software?

Here are three of the most popular options for free MRP software.

MRPeasy

Pros

• Open-source software installed locally with some free updates.
• Includes modules for:
  • bills of materials (BOM)
  • production calendar
  • dynamic rescheduling
  • Gantt charts
  • workstation capacity planning

Cons

• Open-source solutions require in-house development work to implement.
• Costs increase with multiple licences and users.

Odoo MRP

Pros

• Primarily cloud-based but can be downloaded and implemented as open-source software.
• Unlimited users
• Includes modules for:
  • project management
  • billing, accounting
  • inventory management
  • manufacturing
  • purchasing

Cons

• This is a generic MRP app not designed specifically for manufacturing.
• Missing key functionality included in paid packages.
• Not suitable for businesses with specialist or complex planning requirements.

Excel

Pros

• Simple to access and create an Excel document made up of multiple worksheets.
• These can track:
  • production plans
  • weekly requirements’ reports
  • scrap
  • stock
  • raw materials.

Cons

• Large files that take time to open and are complicated to maintain.
• Multiple users increase the potential for version errors.
• Complex formulas can corrupt data.
• Limited features.

What is the best free MRP software for a small business? 

A small business is less likely to have the complex needs of a larger business unless they are a small-scale specialist manufacturing company requiring specific features.

Free MRP software offers options that allow a small business to gain increased control of production processes, a great starting point for good manufacturing practice.

Best Free MRP for small business – Excel 

Excel is simple to access, and you can create your own free MRP with some knowledge. Organise worksheets with layouts and formulas that suit your needs, but beware of the potential for errors. A great free way to explore which MRP features work for you without committing to a software provider.

Paid vs free MRP software

Whether you choose a paid or free MRP option, selecting the right system for your business requires careful thought and planning from the start. Here are some important things to consider.

Free MRP solutions offer the perfect start-up options for those new to MRP software who want to try it on a smaller scale or smaller businesses with simpler needs:

• Cost savings - Eliminate upfront licensing fees or ongoing subscriptions.
• Flexibility - Create a solution customised and tailored to your needs.
• Community support - Get answers for other users or developers.
• Scalability - Start small and then evaluate your future needs.
• No vendor lock-in - You can switch MRP as and when you need to.
• Core functionality - Access just what you need.

Installing lots of free, open-source MRP software solutions can sometimes result in a mishmash of separate modules and spreadsheets that ultimately work against each other. Free options may seem attractive, but often, this approach isn't scalable. It's difficult to efficiently move data between systems that can’t communicate with each other, and they quickly become impossible to maintain.

Most free open-source MRP systems will require skilled staff to maintain them, and features and support can be limited. The addition of extra modules, users and services can also mean additional costs.

Paid MRP software offers a choice of packages that allow businesses to build scalable, future-proof solutions that suit their unique requirements. They offer the peace of mind of a fixed pre-agreed quote and customer support, implementation and training reliability. It may also be suited to larger organisations with more complex manufacturing processes:

• Licensing options - Multiple licences are available
• Breadth of features - Greater selection of features available. Better quality of features included from the start, often at no extra cost.
• Maintenance and updates - Software is regularly updated, usually at no extra cost. Paid-for options have more money to develop software and keep it running, meaning bugs and errors are fixed very quickly.
• Training provision - Tailored training is usually provided as part of the package.
• Implementation assistance - Implementation services are available.
• Customer Support - Customer support is provided so not relying on user community for answers.
• Hosting - Hosted and on-premise options available.
• Resources - No need to hire software development resources
• Integrations - Integrations with finance packages, production planning, CRM systems usually available