Why an MRP might not fit your business – start with ERP | Orderwise
Summary
This is perfect if your manufacturing business has a very large volume of highly complex builds taking place each day, but it shouldn’t be approached as a solution that can manage all of your operations under one system. No matter how advanced your MRP system, if the quality of the information being fed in is flawed and error-prone, the outcomes will undoubtedly be tainted by these weak links across your stages of operations. While an MRP system is designed to ensure you’re stocked for your BOM capacity calculations, what it doesn’t do is take your fluctuating demands for goods into account. Without monitoring seasonal shifts and trends or ongoing fluctuations in raw material costs, your business could end up over or understocking products, and buying goods at a time where purchasing could hit your cash flow the hardest. Moreover, MRP systems fall short in terms of finer details of shifts in lead times that could affect your works order planning and production scheduling, ramping up costs and causing blockages and missed opportunities.