What is MRP software?

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What is MRP software?

MRP or Material requirements planning is a software-based system used for planning and/or controlling inventory concerns in the manufacturing industry. The basic goal of MRP is to ensure that all phases of the manufacturing process will run smoothly with the right timing for materials ordering, production use, and delivery among many other items involved. Through MRP software systems, people and organizations will be able to determine materials availability, delivery concerns, inventory issues, and other activities involved in manufacturing various products and items.

MRP or Material Requirements Planning started off as a manual process in the past. Many project managers for example relied on creating lists of the things needed in the manufacturing process and the activities that need to be coordinated depending on materials availability, inventory levels, and delivery schedules. During any phase of the manufacturing process, inventory and material listings are checked to ensure that no activities are hampered and all will be running based on the master plan. This manual system eventually evolved into a software-based system wherein there is automatic detection of what materials are lacking, when these are needed and when will these be delivered. Through MRP software systems, inventory management is made easier, more accurate, and more efficient. With the system software-based, the exact inventory needs are addressed accordingly.

MRP software systems also provide some reports for better analysis of all manufacturing and inventory-related concerns. Reports typically include recommended schedules in terms of production and purchasing of materials. All recommendations will have pertinent details including the actual dates, quantities of materials, order specifications, and delivery methods. With all the necessary information provided by MRP software, any phase of the manufacturing process will be handled effectively. Some have features intended for large enterprises while others have specifications for certain medium-sized organizations. Many MRP software products also allow easy integration with existing accounting systems and software.

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