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MRP and supply chain problems

Can MRP Fix Supply Chain Problems?

Jun 24, 2022 3:30:00 PM / 0 Comments / in Supply Chain Management, Job Shop, Manufacturing ERP by Clients First Business Solutions

Businesses that manufacture or assemble goods face enormous supply chain problems today. When a business can't get the supplies needed to manufacture a final product, handle eCommerce or distribution orders and customers must wait which results in lower consumer ratings. In addition, a manufacturing company that can't get the raw materials it usually orders from one vendor may need to buy supplies from another source, possibly leading to higher costs, lower quality materials and longer lead times.

How can manufacturing companies today deal with maintaining their supply chain issues? Materials Requirement Planning (MRP) software can help businesses manage overall operating costs, and it can help fix supply chain problems in at least four ways.

What MRP Is

MRP is a planning and decision-making software system that a manufacturing company uses. The software analyzes the business's inventory levels, outstanding orders, forecasts and production capacity to manage delivery time. MRP software integrates sales, purchasing costs, inventory, production, financing, and accounting in one comprehensive suite. An MRP system identifies what products a business needs, how much product is needed, and the delivery time. All these things are critical in overall production.

Improving Inventory Management

Manufacturing businesses need to keep track of their inventory to identify how much stock they need to deliver products on time. Too much inventory can create a deficit in the budget, and too little compromises customer satisfaction. An MRP system helps create a balance of proper inventory levels.

Ensuring Quality Products

Many industries, such as aviation, aerospace, and medical, require specific products. Industries can suffer from a disrupted supply chain. When companies use MRP, it helps get the preferred vendor materials in on time. Manufacturing businesses can ensure their final products have high-quality products with the help of MRP.

Minimizing Lead Times

Lead time in manufacturing is how long it takes for a company to create a product and successfully deliver it to a consumer. The shorter the lead time, the higher the profits are for the business, and the happier the customer will be. MRP can minimize the lead time by tracking inventory, delivery time, and billing costs.

Optimizing Workflow

A manufacturing business can maintain an efficient workflow when its supplier meets the following conditions:

  • The manufacturing company receives the proper supplies.
  • The supplies arrive in the right quantities.
  • Those supplies arrive on time.
  • Materials are affordable. 

An MRP system can track stalled supplies in the supply chain, allowing a business to locate and negotiate quickly with another vendor to get the supplies needed to deliver the final product.

MRP Software to Fix Supply Chain Problems

Microsoft allows manufacturing businesses to confidently plan with multiple supply chain solutions, including the Dynamics 365 Supply Chain Management software. This robust supply chain management system gives companies real-time visibility across all supply chains and helps to optimize their workforces, workflow, billing, and inventory control.

Clients First Business Solutions helps businesses find and implement the right software solution for their unique needs, including fixing supply chain problems. Contact Clients First Business Solutions for a quote, free consultation, and more information regarding their services.

Tags: Supply Chain Management, Job Shop, Manufacturing ERP

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