Material Requirements Planning (MRP) in the manufacturing industry

How to plan material requirements in the manufacturing industry

Material or production requirements planning (MRP) is one of the key processes in manufacturing industries. As a result, knowing the methodology is a key step. These are the points that must be considered for proper planning:

Materials to use

The first step is knowing what materials are going to be used. And this will have to be considered taking into account all the components of the goods. It's important to remember that production processes often rely on multiple raw materials.

At this point, the "what" must be clearly defined, even if you can change suppliers later if necessary. The "what" is also related to the cost of each raw material.

Goods to be manufactured

Knowing what goods are going to be manufactured and how is equally essential. This is, after all, the core business of any manufacturing company, which is why it must be well defined. This is crucial to getting the whole production process going and knowing what is needed.

It goes without saying that in a changing industry, this is an important aspect. Nowadays, in many cases, quality takes priority over quantity, which means manufacturing small, high-value quantities.

Right time to order the materials

The right time to order the materials, in relation to the storage capacities, will depend on several factors. First, on the type of material, whether it is perishable or not. The second important issue is market demand, depending on whether there is seasonality. And finally, if there is a special offer that warrants buying in bulk.

The timing of the request or orders is relevant. And it is precisely this reason that makes it an essential part of any manufacturing industry planning process.

Solutions for the manufacturing industry

The manufacturing industry has to face the challenge of the growing complexity of production processes. And this is where software can make a difference and make these processes better. Beas Manufacturing and SAP Business One are two solutions that help achieve these objectives.

What Beas Manufacturing offers

Beas Manufacturing is a scalable solution that can be used for different manufacturing and production processes.

What is its main advantage? The software can calculate, in minute detail, the cost of the different manufacturing components, but also of the waste generated. As a result, it is much easier to do calculations, which it does based on batches, and comparisons between certain suppliers.

Beas Manufacturing offers the following advantages:

● You will optimise production resources by reducing superfluous expenses.
● The management of the products' life cycles will be better. In the end, it's a question of knowing the production time and its durability.
● Information is power and, thanks to this software, you will optimise your inventory. This is especially useful if you want to reduce the number of unnecessary units.

An added advantage of working with Beas Manufacturing is that it is fully compatible with SAP Business One. This will give you the perfect resource to transmit information on production processes in real time.

Benefits of SAP Business One

SAP Business One is the ideal ERP for manufacturing companies, given that it's the software suite with the most manufacturing customers today. These are the main advantages of working with this software, in combination with Beas Manufacturing. Take note:

● Improved production processes. Thanks to the traceability controls, and together with Beas Manufacturing, you will improve your ratios.
● Supplier management. The information provided by Beas Manufacturing will make it much easier to know which suppliers interest you so you can choose the right one.
● Better customer management thanks to CRM. If you want your company to sell more while controlling the process and customising offers, this is a good option because it helps you focus on your customers' needs.

● Inventory control. It should be noted that, in this case, you will track the inward and outward movements of goods, as well as the location of the goods. Inventory management is money and equally important for good results.
● Human Resources Management. In all production planning, knowing who you can count on is key. SAP gives you this information thanks to its specific module for Human Resources.
● Finance control. You will have real-time access to the status of your finances and bank account balances. It's thus a good way to know the financial status.

SAP Business One is a modular solution, meaning you can activate different modules to meet different needs. For example, it is ideal in small, growing factories.

Thanks to SAP Business One, planning is simple

Planning in the manufacturing industry is much easier if you use specific solutions. Knowing what the cost is and what you save with your production processes is essential, and you can do this with Beas Manufacturing. And, on the flip side, traceability and the optimisation of resources and the commercial area is achieved with SAP Business One. The result of combining both tools is perfect.

At SEIDOR One, we help you implement your Beas Manufacturing software integrated with SAP Business One. This way, you will have everything you need. Would you like more information? Don't hesitate to contact us. We will help you implement the software. Contact us to find out more!