Better Inventory Management with MRP and Dynamics 365BC
In manufacturing, it is not enough just to have a good product. There are so many steps in manufacturing and distribution processes, and every one of them is important. Material Requirements Planning (MRP) starts with knowing where your materials and resources are at every stage of the process.
If you or your distributors have ever been caught short-handed and had to apologize to customers for backorders and delays, you may have a glitch in your Material Requirements Planning (MRP). However, there's a cure for that. The right inventory management system based on your Microsoft Dynamics 365 Business Central can ensure that you know exactly where your resources and materials are at all times.
To keep materials moving at the speed of demand, you need data giving you a clear picture of your inventory all along your supply chain. You probably have plenty of data, but it won't do you much good if it's not in a useable form. It won't keep you on track, and it won't prevent oversupply or insufficiency.
With accurate real-time data, department managers can know exactly what materials and inventory are available and when to expect replenishments. Staying on top of all your manufacturing data will give your business a competitive edge.
With advanced technology, many functions in the manufacturing process have been compressed. As a result, decisions about purchasing and production must be made quickly according to rapidly changing market drivers. Outdated ERP systems that can't furnish consolidated data to inform critical decisions put your company at a disadvantage.
Integrated data supports better and faster decisions
MRP means analyzing all related factors so you can establish purchasing and production schedules. Having your data consolidated in a unified ERP system will ensure that all aspects are considered. From supplier lead time to capacity constraints, a rule-based system that provides scenario-based recommendations allows managers to evaluate options for informed decisions. In addition, system-based MRP allows purchasing and production overseers access to more information when making decisions. Some of these considerations might be:
- Inventory on hand and up-to-date forecasts
- Open purchase orders, sales orders, and work orders
- Machine and resource capacity
- Dependence on BOM (Bills of materials) and sub-assemblies
- Seasonal demand and order history
With system-based MRP guidance, managers have the data they need to balance supply and demand by pivoting quickly in response to change.
An MRP case study
One of our clients, a kitchen appliance manufacturer, wanted to introduce a new line of appliances while also branching into new areas. At first, sales were modest. But the product was in demand after being featured in a well-known magazine. Sales forecasts were changing every week, and our client feared potential shortages. To make matters worse, their distributors were worried about running out of stock and were over-ordering and draining stock levels.
Based on system-guided MRP, the manufacturer quickly built realistic sales forecasts based on purchasing trends. As a result, excess production capacity was identified in a facility that may not have been considered without the system recommendations. With confidence in their data, the manufacturer was able to redirect resources rapidly to meet the demand.
Work with inventory management experts
Technology based on the right ERP solution is the key to gaining control of your supply chain. But, equally important is connecting with a partner whose experience and expertise can address the issues you're facing and help you reach your goals.
ArcherPoint has helped manufacturers do just that with Microsoft Dynamics 365 Business Central for more than two decades. With our certified professionals and real-world manufacturing experience from the back office to the shop floor, we can help you overcome inventory management challenges.
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