Material requirements planning, or MRP, is essential for any business that manufactures goods. MRP refers to a system used to calculate the materials and components of any product being manufactured and at what point in the manufacturing process they’re needed. Using MRP software can streamline MRP. Here’s an overview of what the MRP process entails and why it’s important to have software that can help you out with it.
The main purpose of MRP is to keep inventory of the materials and components your business has in stock. This enables you to identify what items you need and coordinate plans to purchase them. To accomplish this, MRP uses something known as the bill of materials to quantify your materials and the subassemblies needed to make a product.
Rather than keeping track of this information by hand, MRP software uses technology to keep your bill of materials up to date, making it simple for you to keep track of what items your business needs and the timeframe for acquiring them. This results in lower customer lead times, financial savings, improved manufacturing efficiency, and overall easier management.
If you’re looking for a great way to match supply to demand and streamline the way your manufacturing business operates, MRP software is a worthwhile investment.