System-Based MRP Guidance for Better Inventory Management
Manufacturers are challenged with ensuring inventory and raw materials are where they’re supposed to be, at the right on-hand levels. Is what you need where it’s supposed to be? This is not something to guess at; you need solid data and visibility into the flow of materials and inventory up and down the supply chain.The problem isn’t getting the data; it’s getting it into a form you can use to get the intelligence you need. Through real-time, accurate information, department managers can put data to work when they know exactly what materials and inventory they have to work with, and when they can expect replenishment. The companies that have access to real-time, accurate data are building a competitive edge through system-based guidance in materials resource planning
As with most functions in the manufacturing process, the time horizons for MRP (Materials Resource Planning) have been compressed. Purchasing and production decisions need to be made quickly, based on fast-changing market drivers. Outdated ERP systems that don’t provide consolidated information to drive those decisions put your company at a competitive disadvantage.
Integrated Data Supports Better, Faster Decisions
Through consolidated data from a unified ERP system, all factors that need to be considered for MRP are analyzed to recommend purchasing and production schedules. From supplier lead time to capacity constraints, a rule-based system that provides scenario-based recommendations allows managers to evaluate options for informed decisions. System-based MRP recommendations allow purchasing and production managers to include more factors in their decisions, such as:
- On-hand inventory and current forecasts.
- Open purchase orders, sales orders, and work orders.
- Work and machine center capacity.
- Bills of materials and sub-assemblies dependencies.
- Order history and seasonality.
With system-based MRP guidance, managers have the data they need to adjust the balance between supply and demand to pivot quickly in response to changing needs.
A Customer Case In Point
A kitchen appliance manufacturer was cautiously entering a new geographic market, introducing a new line of appliances. While initial demand was modest, the line started to take off after being featured in a popular magazine. Sales forecasts were updated every week, and potential shortages loomed. The manufacturer’s distributors were afraid to run out of stock and placed orders that were draining stock levels.
Based on system-guided MRP, the manufacturer was able to quickly build realistic sales forecasts based on purchasing trends. Excess production capacity was identified in one facility that may not have been considered without the system recommendations. With confidence in their data, managers were able to redirect resources quickly and meet demand.
Ask the Inventory Management Experts
Technology, including the right ERP solution, is the key to gaining control of your supply chain. The other half of the equation is connecting with a partner with the experience and expertise that can address the issues you’re facing and helping you reach your desired future state.
ArcherPoint has been helping manufacturers do just that with Microsoft Dynamics 365 Business Central for more than two decades. With certified professionals and real-world manufacturing experience from the back office to the shop floor, we’ll help you tackle those inventory management challenges.
For more information, download our eBook, “How Today’s Manufacturers are Taking Control of Materials, Inventory, and Manufacturing Costs from Order to Delivery”. Then contact ArcherPoint to talk about how we can help you optimize your supply chain.