MRP or manufacturing resource planning takes ownership of the data from the quotation stage, through the sale, the raising of the works order, through all stages of production including the warehouse (goods in/out) and subcontracting, through to shipping and invoicing. By holding a single source of data all departments should have visibility of relevant information.

As sales orders are loaded on the system, purchasing can immediately see future requirements plus view an item’s order history in order to make informed purchasing decisions. Additional information, such as alternative suppliers and quantity break price information, also can help to bring further purchasing efficiencies.

With purchasing correctly loading orders onto MRP, your warehouse will have visibility of what is arriving and when. Implementing barcode scanners can speed up goods in/out, assist with providing batch traceability and reduce booking errors across all departments on the shop floor. This will filter down to a reduction of inventory inaccuracies, which in turn will require less frequent inventory checks—saving further time and resources.

As an order works its way through each stage of the production process, each update to the system is immediately accessible across the company. Office staff can report more accurate delivery times to customers, and many companies see a significant reduction on product leadtimes post-MRP implementation as stock shortages are reduced/eliminated and all order-related processes can be enacted quicker.
Once orders have been dispatched and invoiced the MRP system’s job is done and it can pass over data to the accounting system for debt collection/processing.