How to Pick the Right MRP System for a Small Business

If you are managing a small-time manufacturing, do you really need an MRP software to take full control of your business? Is a standard Manufacturing Resource Planning system too much if your company is made up of only a few employees?

The answer to this question is a resounding, YES! Understanding the core function of the MRP system and how it works will allow you to choose the right MRP system software for your company’s unique needs. Of course, an MRP system package originally designed for large-scale manufacturing businesses is overkill for small businesses such as start-ups. On the other hand, a Manufacturing Resource Planning System specifically designed for small-scale manufacturing is perfect fit as it is guaranteed to enhance overall operations and management.

Why should you use an MRP System?

If you are in the manufacturing business it is imperative to utilize the best MRP system software to ensure smooth inventory control, efficient billing of materials processing, and flawless scheduling of outputs. The manufacturing process is comprised of many elements, namely:

  • Labour resources
  • Material requirements
  • Outside services

Combining these elements is rather complex, thus even a small business entity will need a software that is designed to make the manufacturing process more efficient and hassle-free too.

MRP Inventory Management Features

inventmOne of the most beneficial elements of using an MRP application is due to its cutting-edge inventory management features. The formulation of a comprehensive, accurate, and complete bill of materials that defines your product offerings which will then be incorporated into the MRP software system. The integration of an MRP software allows for the accurate and timely ordering of components that are needed in the manufacturing process. Inclusion of full details as well as definition of all components helps a business avoid common problems such slowed or delayed production and gaps in supplies to name a few.

Easier Processing of Orders from Outside Suppliers

As a business owner, you may already have your own MRP system in your mind. But these information can be forgotten or lost at some point in time. By implementing an actual software application, you don’t have to worry about inaccuracy or lost data anymore.

An MRP solution allows users to be aware of all current suppliers as well as other important details such as the raw materials they provide and the terms of payment as well.  Once these information are typed into the system, the MRP will automatically regulate factors such as pricing and delivery time to ensure stable and consistent flow of production.

Complete and accurate reports

reports-imgDepending on the MRP software that you choose to implement, the last stage of reporting can take in the form of either material requisitions or purchase orders. In order to capture accurate reports, users need to type in carefully complete information for initial data. Tuning the MRP system for reporting purposes will need to be done by an expert to be guaranteed with regular accurate results.

All Manufacturing Companies Need an MRP System Regardless of Size

Many small-scale entrepreneurs assume that company size is the only determinant for utilizing a manufacturing software program. This is far from truth, as there are small manufacturing outfits that focus on the production of advanced and highly complicated goods. Big companies, no matter how sophisticated or simple their outputs are, use manufacturing software to simplify production, delivery, and planning altogether.

Essentially, an MRP software solution should match a company’s offerings, and should not be dictated by business scale or size.

What makes it easy for an increasing number of small companies to integrate a manufacturing resource planning in to their system is that majority of these programs are extremely easy to learn and use. Software systems that focus on the manufacturing process for small businesses, feature a variety of smaller processes such as general ledger, banking, payables, receivables, purchasing, sales orders, and inventory to name a few. It is very easy to familiarize oneself and employees to use them, thus making day-to-day manufacturing tasks more efficient and always on time.

It is imperative that you use a reliable MRP system no matter how small your company may be. Manufacturing is the heart of your business, and utilizing easy-to-use modules such as billing material, MRP and job orders guarantee flawless workflow.

It is true that companies may opt for manual management and control of the manufacturing process. This may seem like a good idea since it guarantees to be more cost effective than installing software systems. However, business owners should realize that the latter guarantees high level of efficiency and more profitable than manual control of the entire manufacturing scheme. Lastly, spreadsheets and reports done manually cannot compare to the organized and systematic order delivered by a reliable manufacturing software system.

The inclusion of material requirements planning into your company’s core functions feature a higher grade, automated inventory control. MRP software systems assure efficiency by taking a bill of materials needed for production, and spreads it into components and subassemblies. For instance, time factors for ordering processes and manufacturing cycles, enables small business owners to systematically manage the ordering of more materials in the future.

Picking a Right System for your Small-Sized Manufacturing Company

Selecting the right types of MRP system for your small business is a daunting task. You need to become familiar with the principles of MRP before you make an attempt of choosing one to integrate to your business. Do you need an MRP system software that features simple and straightforward inventory management? Do you need an application that can add other equally-crucial areas like human resources, marketing, and sales too?

When shopping for an MRP solution, make sure to pick one that perfectly matches your business goals as well as requirements. You need to identify your requirements prior to implementing an MRP. The best way to do it would be trying out the software using the free trial option. This way you can find strength and weaknesses of the software offered, and make a more weighted decision if the MRP system software is right for your manufacturing operations or not.