6 warning signs your manufacturing company needs MRP software
Manufacturing Resource Planning (MRP) software enables small manufacturers to streamline their processes, reduce costs, and increase overall productivity. Here are 6 unmistakable warning signs it’s time to make the move yourself.
1. Spreadsheets are becoming unmanageable
Spreadsheets have long been a go-to tool for manufacturing management. However, as your company grows, so does the complexity of your data. When spreadsheets start to multiply, become error-prone, and are no longer able to handle the volume of information efficiently, it's a clear sign that you need a more robust solution.
2. Current software doesn’t fulfil expectations
If your current inventory management or accounting software falls short of meeting your manufacturing needs, it's a clear indicator that you should consider MRP software. Inventory management or accounting software, while useful for certain tasks, often lacks the comprehensive features required for manufacturing operations. They might struggle to handle raw material inventory management, complex bills of materials (BOMs), production scheduling, and an array of other manufacturing-specific functions.
3. Need to comply with traceability regulations
In many industries, traceability is not just a buzzword – it's a regulatory requirement. Tracking the journey of raw materials, components, and finished products is essential for safety and compliance. MRP software like MRPeasy offers comprehensive traceability, providing real-time visibility into your supply chain and ensuring you meet regulatory standards with ease.
4. Not knowing when products will be ready
Another issue manufacturers constantly wrestle with before implementing a robust MRP system is production time estimates. Inaccurate estimates become especially problematic when items are sold ahead – if customers do not receive their purchases within the promised timeframe, they might find another seller the next time. MRP software uses data such as supplier lead times, production cycle times, and material and labor costs to provide accurate production time and cost estimates whenever an order is created.
5. Not knowing your actual production costs
Do you find it challenging to accurately calculate your production costs? Relying on estimates or incomplete data can lead to financial inefficiencies and affect your bottom line. MRP software includes robust cost accounting features that allow you to track expenses throughout the production process. You'll gain insights into your actual production costs, helping you make informed decisions and improve profitability.
6. You have limited control over your inventory
Inventory management is a critical aspect of manufacturing. If you're constantly facing issues like overstocking, stockouts, or a lack of visibility into inventory levels, it's time to adopt an MRP system. It provides real-time inventory tracking and material planning, ensuring you always have the right amount of goods on hand.
Conclusion
If your company is grappling with any of these challenges, it's time to explore the benefits of MRP software. By implementing MRP software, you can improve efficiency and reduce costs across the board while priming your business for sustainable growth. Don't wait until these warning signs turn into costly problems – take action and empower your manufacturing company with the tools it needs to thrive.
