What is Material Requirements Planning?

Small and mid-sized businesses (SMBs) within the manufacturing industry depend on material requirements planning (MRP) software because of the many advantages it provides. Some of the benefits of material requirements planning (MRP) software include elimination of excess inventory, cost savings, and simplified production planning. But what exactly is MRP?

According to Wikipedia, material requirements planning (MRP) is described as, “a production planning and inventory control system used to manage manufacturing processes”. While it is possible to conduct MRP by hand, the majority of manufacturers today instead rely on powerful MRP software like the SAP Business One MRP module.

An MRP system is intended to simultaneously meet three objectives.

  1. Ensure materials are available for production and products are available for delivery to customers.
  2. Maintain the lowest possible material and product levels in store.
  3. Plan manufacturing activities, delivery schedules and purchasing activities.

What are the Benefits of Implementing Material Requirements Planning Software?

Most manufacturing companies utilize an inventory system to organize the processes related to creating the products they sell. Material requirements planning software facilitates the organization of the inventory items. Using a MRP software system is recommended for companies making any type of product which has a lot of component pieces.

Material requirements planning has three basic components. First is to make sure that all necessary products and materials are in line for production. For the successful production runs, all of the components required for making an item must be available. Second, being able to see stock levels and know when inventory items are is getting low is critical. The goal of many manufacturers is to be able to produce enough product to  meet the demand, and avoid creating unnecessary amounts of overstock. The third important requirement of MRP is to not only know what is being produced, but also track when and where those items are being shipped.

If a company has not purchased or made the materials required to meet the demand for their products, they can run the risk of losing customers. With a MRP system such as the one found in SAP Business One, the software provides you with the tools you will need to maintain the correct balance of inventory materials so that you can meet the demand of your customers. The planning also involves ordering the correct amount of required materials at the right time. Although forecasting and other things can be automated and streamlined by the use of the software, any data entry error in the system could throw off the numbers and cause the reports to be incorrect. When manufacturers utilize an MRP application to help them automate tasks related to production, as opposed to having employees perform data entry, it can save time and help your business maximize your profits.

Adopt SAP Business One ERP and MRP Software Today with Cornerstone

Cornerstone Consulting is an information technology (IT) company specializing in business optimization and automation for small and midsize businesses that would like to grow regionally, expand nationally, and/or sell goods internationally. We greatly simplify the process of purchasing SAP Business One wholesale distribution software. We also ensure that the software integration and implementation is as seamless as possible. Cornerstone is:

  • A trusted SAP Gold Partner
  • An award-winning value-added reseller (VAR)
  • A company with highly-skilled customization, configuration, and implementation specialists
  • Renowned for expertise with ERP, mobile software and technology, EDI, e-Commerce solutions, and more

We offer demos and free trials for SAP Business One, so you can easily experience the power of this amazing ERP software before purchasing it. When you are ready to purchase the SAP Business One user licenses, we offer special discounts on SAP ERP software. We enjoy making the process of purchasing SAP Business One and related add-on software simple and easy for owners of small and midsize companies.

Although Cornerstone provides SAP Business One software, related services, and tech support to companies through out the United States, many professional services, manufacturing, and/or wholesale distribution clients are based in Florida. Cornerstone is a top-rated provider of SAP Business One software and support services in Florida, including implementation, configuration, and automation.

If you have more questions about the SAP Business One ERP system, get in touch with our team’s certified SAP Business One software consultants today by calling 813-321-1300 right now. She’s been providing ERP advice about this powerful integrated system of accounting, CRM, inventory and warehouse management software to manufacturers and wholesale distributors for more than 15 years.

Material Requirements Planning Software Resources for Manufacturers

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