If you are a small manufacturer, then you probably face a lot of problems, related to your production and inventory.
If you are not aware of the solution yet, we are here to provide you with suggestions! In particular, we’ll propose a solution, based on the recommendation of most small manufacturers around the world.
Before we delve deeper into the solution and what it is going to do for you, we should discuss the actual problems you are probably facing:
- All the ERP systems out there are incredibly expensive and on top of that very difficult to use;
- It’s a hurdle to manage inventory and production with Excel sheets, if you’re business is growing
Now, what’s the solution for these problems? Using a manufacturing resource planning (MRP) system which is affordable, easy to use and you can easily get it. This MRP is here to meet the budget you have and your needs!
What is mrp?
Do you really want to get rid of the complex webs of spreadsheets? Then MRP is going to do this for you, handling everything for you so that you can pay attention to all the other related tasks.
Other than this basic advantage, you are going to get lots of other benefits too. You can go from production planning to the inventory control, and much more.
You should be clear about this fact that not all the other systems of same type are going to help you, and they do not worth your money and time.
Let us go through the key factors you ought to be considering when you are going to choose the right MRP for your business. Here you go:
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Why MRP over ERP?
So, whenever a person is thinking about choosing the right system for their business, they might think about ERP first. It is gong to be confusing for you then you want to decide between these two.
If you want the heavy data management then you should be going with the best software out there. It is not necessary that the big players in the market are going to be best for you.
Let us talk about the turning point where you will be able to select between these two.
Are you willing to spend over 25000 dollars per annum?
It is of course a lot of money and you definitely would not even think of spending this much money on single software.
This is the point which will compel you to go for MRP system over any other in the market. Moreover, it is packed with all the features you want!
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Total control
You can get the control of your inventory when you are using MRP system, and of many other things, such as scheduling, production, costing, etc.
- It will keep the track of the stock
- It will not run out of stock, so you will not have to face any delayed deliveries
- You will see that your inventory is always on optimal levels.
- The carrying costs can be reduced when the excess stock will be reduced
If you are using MRP then it means that there is no need of you looking for some other software. A Software, which is going to keep track of your products and materials and all the other related tasks. This is an area with many different tailored solutions, when it comes to inventory management. Depending on your needs, you might need the full ERP or just a quartermaster system, like those used by the police.
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Production planning with software
When we talk about production then planning is the key which is going to help you throughout the production process. You need to balance both of these if you want maximum efficiency later on.
With the help of MRP system you will be able to schedule important tasks!
Also, you can also be able to prioritize the productions with the help of an MRP system. Moreover, you will be able to save a lot of bucks when you are going with a good schedule!
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The accurate costing
You can spend the time in finding and selecting the right MRP system for you!
As far as the MRP is concerned, then we see that the most amazing feature is the production of cost reporting. Especially, when the cost of your raw materials is not stable, then you will see a clear reduction in the overall costs.
Keeping track of your costs can be mission impossible using spreadsheets, especially if the cost of raw materials is not consistently stable.
You must be looking for these two aspects whenever you are going for MRP system:
- If it providing you with the track of the costs of the materials as well as the manufacturing costs
- It must have the ability to create the product recipe when we are talking about multi levels
Some more tips to choose the right MRP system
- If the MRP system is making your life easier by covering the order fulfillment elements then you should go for it
- It must integrate with the workflow fully and all the important integrations such as QuickBooks and Shopify, must be fulfilled
- It must allow all of your team members to use it equally so that there is a clear reduction in the miscommunications among them.
- It should allow the remote work, which means that it should be cloud based.
- Solid customer support must be kept in mind when you want to choose the best MRP for your business.
- You should also be looking for the forecasting feature in a MRP system so that it can plan all the materials accurately.
End note
Now, you have all the tips you are going to use when you are selecting the MRP system for your manufacturing business. It is definitely going to help you a lot, in many ways!
If you want to get all the benefits mentioned above then you should instantly start looking for a MRP system for you manufacturing business.
You will not regret after choosing the right MRP system for you so you should not be wasting more time in thinking and get the MRP system right away.