MRP Software is an essential tool that every business should have, regardless of size. You will be able to manage your supply chain in an integrated way, from managing customer orders to provisioning resources.
The main benefits of using an MRP Software in your company are:
- Integration of the functions of the organization.
- Improve your processes speed and agile customer response.
- Better use of your assets and resources.
- Improve your inventory levels.
- Gain security and reliability when managing your business data.
Let’s see in more detail each of the benefits:
1. Integration of the functions of the organization
No longer work in silos. By implementing a MRP Software, all departments will be connected to each other, bringing real-time information. The information will be the same everywhere, and just in one place.
This is not an exhaustive list but it shows how integration impacts the whole manufacturing business:
- Sales can quote automatically each product, starting from material cost, in a quickly and accurately manner.
- The demand planning area can generate a robust master production schedule. Based on the demand forecast, the MRP system will determine the required resources.
- The manufacturing team will detect bottlenecks and highlight machinery downtime at each workstation. Thus, your manufacturing team will be able to create countermeasures.
- Warehouse staff will ensure the availability of raw materials, semi-finished and finished products. Real-time and accurate inventory levels are updated in the system, rather than keeping records in paper or on your PC. Everyone can, with the corresponding role access, check material availabilities.
- The planning team will gain visibility over the supply chain. They will be able to track inbound and outbound logistics and ensure compliance with delivery schedules. They will also be able to balance the stock volumes with the flow of materials.
- The purchasing department will be able to carry out their procurement process. They will not need to waste time requesting data from the warehousing or the production team.
2. Improve your processes speed and agile customer response
The speed of business process is a valuable factor that brings both lower total lead time and lower operating costs. MRP software allows calculating faster than manual methods, and even faster than spreadsheets.
Here is an helpful article about How to Go From Excel to MRP Software.
In the best case, an Excel spreadsheet can generate a material explosion. Still, you will not be able to determine the amount of inventory in the warehouse or trace the materials. Excel tables will never work as efficient as specialized manufacturing planning software does.
Thanks to the MRP solutions, the communication processes can be accelerated. The sales team does not need to contact the departments of purchasing, logistics or production. No more inquires about material availability, that a system can answer. The MRP software solves the communication issues between departments. Many users can also use the system simultaneously.
From now on it will be possible to send quotes immediately, as well as billing your products. You can estimate prices from your mark-up policies and costs quickly and accurately. Alternatively, you can set the profit margin per product, based on the price and cost. Improve the communication with your key business partners through Electronic Data Interchange (EDI). Finally, you will be able to follow up all sales orders, track products and give a reliable and immediate response to your customers.
3. Better use of your assets and resources
You have machinery and equipment within your manufacturing business. It is important that you ensure the best usage of these valuable durable assets. MRP software allows you to load equipment into the system and manage the capacity. Detect inactive production capacity and act, for example by rescheduling the workers shifts. Or you could also detect saturated capacity and reallocate your resources.
Make a better use of the installed capacity, by comparing the production plan with the available plant capacity. This process, called Rough-Cut Capacity Planning, will contribute to cut idle time or excessive workload. Make the right investments in your plant, when facing sustainable increasing demand. You can also improve the usage of your resources by anticipating production for seasonal demand peaks or by deferring it.
Summarizing, you will be able to check and make better use of your assets and resources.
4. Improve your inventory levels
Do you lack material or stock too much? Don’t know when to buy and in what quantity? Can’t find the materials in your warehouse?
MRP Softwares allow you to solve all these matters. Putting in place such system you will be able of:
- Determine the precise quantity of materials required for each production batch
- Monitor the amount of inventory on hand and in need.
- Accurately determine when you need to release a material purchase order.
- Define the optimal lot sizes to buy.
- Find the position on the shelves where your inventories are located.
In other words, MRP Softwares help you maximize the inventory levels.
5. Gain security and reliability when managing your business data
MRP software can be hosted in the cloud. Thus, it does not need users connecting to a specific computer anymore. Rather, users can access from any device with internet connection, such as desktop computers, mobile phones and tablets.
Cloud-based solutions offer security protocols to protect information and transactions. This prevents third parties from altering the data.
Cloud-based services also offer reliability. With appropriate security measures, users can access data within the cloud, no matter where they are or what device they are using. You can operate at scale with lower technology costs and say goodbye to file searching, lost or overwritten files.
Perhaps, it is the time to discuss with your team the implementation of an MRP solution. Perhaps it is the time to leave the obsolete and ineffective systems behind. Optimize the use of your resources and let systems replace calculations that may lead to human errors.
Regardless of the type of product you manufacture, the MRP software will help you to gain integration, speed and efficiency.