Growth is the heartbeat of small manufacturers, driving every decision and aspiration. But in an arena where every resource must count, expansion can be a massive challenge. Here are five ways manufacturing resource planning software can help small manufacturers achieve sustainable growth.
1. Accurate material and production planning
MRP software improves planning accuracy through a combination of essential tools, including long-term master scheduling, material planning, capacity planning, and short-term production scheduling.
The combined use of these tools results in minimized waste, reduced overstocking, and maximized customer satisfaction as products are readily available when needed.
“The production planning and scheduling functionality of MRPeasy is much easier and more efficient than using spreadsheets or whiteboards. With the software, we’ve seen overall waste reduced by around 3%,” says Kate Taylor, CS Executive at fragrance manufacturing company MicroCapture.
2. Bottleneck detection and elimination
MRP software allows manufacturers to automatically track various operational metrics, including production efficiency and quality KPIs. This enables them to detect inconsistencies and bottlenecks, whether they are related to production times, product quality, material supply, or other aspects of the manufacturing operation. By pointing out these hurdles, MRP software helps manufacturers gain the insight needed to fix issues and allocate resources more effectively.
“Since we started to use worker reports, we have accumulated data from the shop floor that gives us more visibility into production. With Sage and Excel, it was very difficult to get accurate reports like those – now we can process the information much quicker and get insight into the efficiency of our workers,” states Chris Landen, Operations Manager at computer hardware platforms manufacturer Exacta Technologies.
3. Better cost tracking and analysis
MRP software offers granular insights into production costs, enabling meticulous tracking and analysis. Manufacturers can monitor expenses related to raw materials, labor, and overhead, facilitating accurate pricing decisions based on real-time data. This level of financial visibility empowers manufacturers to streamline costs, improve margins, and invest resources where they matter most.
For example, after implementing MRP software, the frozen food manufacturing company Frozen Garden is able to proactively change suppliers, recipes, and selling prices whenever ingredient cost increases start jeopardizing profitability. “MRPeasy has all the functionality manufacturers from industries such as food or pharma need to comply with FDA regulations and get to the next level of efficiency,” says founder Allyson Straka.
4. Reducing the quote-to-cash time
MRP software can significantly improve your cash flow by streamlining various processes. First, manufacturers can use the software to swiftly estimate order lead times and costs according to resource availability, material prices, and labor requirements. This accelerates the initial stages of the sales process and helps win business more quickly. Additionally, efficient material planning, resource allocation, and production scheduling reduce lead times, ensuring faster order fulfillment.
“The quoting system within MRPeasy is great. We are now able to turn over quotes within 24-48 hours from receiving the request,” says Kendra Scappaticci, Operations Manager at automotive assembly manufacturer KS2.
5. Improved scalability
MRP software serves as a growth enabler by offering a centralized platform to manage operations, even as production volumes increase. With scalable cloud-based solutions, manufacturers can confidently launch new product lines and seamlessly expand to new facilities and markets. This is something that cannot be easily achieved with traditional tools like spreadsheets.
For example, when there is a sudden surge in customer orders, MRP software drastically reduces the time spent on administrative tasks such as order processing by allowing you to quickly convert customer orders into scheduled manufacturing orders while generating pre-filled purchase orders for missing materials. The software also instantly highlights capacity constraints so you can plan for extra hands or machinery in order to respond to growing demand.
“We are about eight times the size we were in 2017 but have barely doubled the administrative side of things,” says Javed Bashir, Production Director at mattress manufacturing company B&A Quilting, about his experience with MRPeasy.
Conclusion
MRP software equips manufacturers with tools that empower them to navigate the complexities of the industry while fostering sustainable expansion through higher efficiency, better planning, and improved cash flow.
In the end, the impact of MRP software extends beyond the shop floor and even the organization. It extends into the marketplace, where customers benefit from a reliable supply, prompt deliveries, and impeccable quality. As small manufacturers leverage MRP software to grow, they're not just expanding their operations; they're shaping a future that's built on efficiency, insight, and success.
For more information, please visit https://www.mrpeasy.com/
