19 Feb How MRP Software Can Grow Your Business
When Joe Orlicky wrote “Material Requirements Planning”, back in 1975, he gave birth to a process that is still used today in the vast majority of ERP implementations.
Material Requirements Planning, better known as MRP, is more than just a piece of software, or a software module. MRP is a methodology, a process, that helps any company that needs to balance the conflicting aims of demand and supply within their operation.
For as long as we have a business that needs to plan a process with complex products and supply chains, MRP will always be beneficial to a manufacturer.
With businesses becoming even more reliant on technology to meet the needs of a market that demands fast response times, minimal lead times and mass customisation, this digital age has turned MRP into an even more vital inventory planning tool.
MRP Software Features
SAP Business One’s Material Requirements Planning software manages MRP through a wizard-based process to enable users to define a planning scenario in a few easy steps and predict demand based on forecasts.
So, what are some of its features?
Helps you plan and optimize future material requirements and then both manage and execute purchasing and manufacturing recommendations and exceptions. By enabling companies to have multiple scenarios, users can perform short and/or long-term material planning as well as performing specific master scheduling (MPS) type activity.
MRP at its heart, is an algorithm that balances supply and demand – and makes the appropriate recommendations to ensure that balance is optimised. To make those appropriate recommendations, SAP Business One considers various supply and demand sources, including existing stock levels, planned production orders, open purchase orders, actual sales orders, forecasted orders, master data like BOMs, and planning data like lead times and minimum stock levels.
Exceptionally clear MRP results, recommendations, and exceptions screens allow you to sort, filter, and drill down through MRP pegging information to actual receipts and requirements (forecasts or sales orders) and edit, individual purchase order line quantities.
Allow you to build your forecasts based on structured past data and sales forecasts. Intelligent forecasts within SAP Business One use sophisticated forecasting methods to generate real-time projects that can be used to drive medium- and long-term demands.
MRP can be run at any time and used for modelling and ‘what if’ purposes, enabling the business to plan multiple scenarios on the fly.
The Main Benefits of MRP Software
The MRP process within SAP Business One manages material planning through a wizard-based process to enable users to define a planning scenario in a few easy steps and predict demand based on forecasts.
All too often, manually tracking forecasts through spreadsheets results in costly human errors. Through the MRP tool available in SAP Business One, you’re able to automatically build trustworthy forecasts based on structured past data and sales information.
Manually entering your stock is a long and stressful process. Any inaccurate or out-of-date records result in unnecessary costs and ultimately cause overstocking. The MRP software available in SAP Business One, enables you to bring your forecast and inventory onto a single, automated solution. This means you get access to real-time information about your stock through reports and dashboards whenever you need them.
Streamline your distribution
Directing stock transfers between locations can show as a difficult process when done manually. Automated MRP software means you can monitor your stock across various locations, helping your staff to see when and where to move inventory.
Gain real-time business intelligence
Moving from offline and manual systems to SAP Business One’s MRP process means users can easily generate forecasts, adjust schedules, and see every part of the supply chain under one roof. When demand rises, MRP software means you can see a timescale for any changes to your procurement, production or distribution processes.
Making Your Complex Simple.