What is MRP?
An MRP or Manufacturing Resource Planning software is a comprehensive business management tool designed specifically to meet the needs of manufacturers.
It helps with every aspect of running a manufacturing business, from customer relations to inventory management to production planning and scheduling.
Even though larger manufacturing companies have used MRP systems for decades, the smaller players have only recently gotten the chance to benefit from them. While the licensing fees of older manufacturing software systems went up to hundreds of thousands of dollars and the systems took ages to implement, the rise of cloud computing changed things drastically.
Modern MRP systems level the playing field
Today, many MRP systems are cloud-based. This eliminates the need for an on-premise server and IT department, making upkeep and maintenance the problem of the service provider. And that saves manufacturers a lot of money.
It also prevents data loss while giving users access to the software from anywhere – be it on the shop floor of the factory, the accountant’s desk, or a sunbed at a resort. Managers can keep their eye on the business from everywhere.
The software has also become very affordable. For example, MRPeasy subscription starts from only $49 per month. That is a bargain, especially considering what it could do for your business. And it takes weeks, not years, to implement.
What does MRP do for manufacturing?
A proper MRP system covers all aspects of a manufacturing business with separate yet interconnected modules dealing with customer relations, procurement, production, inventory, accounting, and management.
That means there are a lot of benefits to using it. Let’s go over the big ones.
- Maintaining optimal inventory levels An MRP system connects data from the production, inventory, sales, and procurement departments so that everyone is kept up-to-date regarding the materials stored, used, ordered, and required. By leveraging the power of data, inventory can be kept at its leanest, which is especially important if you’re dealing with perishable goods like food. This way, resources are used optimally and waste is kept at a minimum.
- Better purchasing practices Being able to analyze inventory and production data gives you the advantage of knowing exactly when and how much of a material is needed. This means that whenever an order comes in, the system will check the inventory levels of materials needed, and allow you to create a purchase order based on what is necessary for production.
- On-time, on-budget deliveries In addition to creating purchase orders, the software uses vendor data to calculate the timing of material deliveries, and production data to create accurate production schedules. Thanks to this data, it also enables you to give accurate lead time and price estimations to customers in a matter of minutes. This improves your reliability in the eyes of your clients while preventing situations where production costs exceed your initial quote, leaving you to pay the difference. Fast quoting could also help you win new business quicker. Simply put, an MRP system could improve your customer relations and increase profits at the same time.
- Improved internal communication With automated information sharing, each department and worker has instant access to the details pertaining to their job. This means there is no room for forgetting a task or waiting for orders to be processed before work can start. MRP software will also allow you to detect bottlenecks on the shop floor, and let you reroute production in the most efficient way possible.
- Streamlined production planning and scheduling The software provides an overview of everything relating to production, from BOMs to maintenance schedules. This allows you to intelligently design the processes so that there would be minimal chance of downtime, defects, shortages, bottlenecks, or unavailability of workers or workstations. Your shop will run like clockwork, producing more goods in less time.
With all these (and more) functionalities available, manufacturers can quickly and painlessly scale their production according to market changes.
They can substantially cut down on production and inventory waste while improving customer relations.
And they can utilize everyone’s time in the most efficient way possible.
All this together can help raise profits and contribute to sustainable growth.
And that’s what every business is after, isn’t it?
MRPeasy is a powerful yet simple cloud-based MRP software designed specifically for small manufacturers. Integrating production, inventory, sales, purchases, and finances, it provides you with an accurate real-time overview of your operations. Its users report a 54% average improvement in their overall performance and a 42% increase in on-time deliveries. For more information, visit www.mrpeasy.com
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