How an MRP System Can Lower Costs & Improve Profits for SMEs
Does your business need to improve its performance to stay ahead of the competition?
While small and medium-sized businesses face challenges to stay ahead in the manufacturing industry, there are solutions companies can implement to overcome such hurdles. Using an MRP system (Material Requirements Planning) is a strategy many businesses choose to use, centralising core manufacturing functions into one place. It allows businesses to have greater control over manufacturing operations and streamline processes to become as efficient as possible.
ERP software (Enterprise Resource Planning) has now been developed to incorporate all elements of the operational management process. These include functions such as associated financial information and personnel performance data which will tie together each part of the workflow. This not only enhances information sharing across the company, saving you time and money, but it can lower company costs by maximising efficiency. This can be actively measured through improvements in a company’s bottom line.
Statii software provides simple, sophisticated and unique ERP and MRP systems which suit the business setup of SMEs, allowing them to meet their operational objectives. Our wealth of expertise helps us to understand the challenges faced in the manufacturing industry and the tools needed to manage growth.
We never give customers the hard sell, having been where you are today. If you would like some more information about how Statii software works and how it can benefit your business, get in touch on 01623 749 739. Read more.
What Operational Challenges Do Manufacturing Companies Face?
There are increasing pressures for manufacturing companies to maintain their market position in a competitive industry. For SMEs, this can increase the number of challenges they face to ensure their operations are efficient as possible.
- Duplicating tasks – The inability to efficiently share information across an organisation often results in unnecessary time being spent on the duplication of tasks. This can also happen due to lack of digitalised workflow with many businesses remaining paper-based and manually inputting data into spreadsheets. Time is money, so too much time spent on admin and data entry is not an efficient way to work. It also creates frustration amongst the workforce when trying to locate information and tie it together.
- Overreliance on one person – In small companies, it’s not unusual for the onus of managing everything to fall onto one person, usually the business owner. This prevents others from being able to make fast decisions and creates reliance on one person to see the overall company picture. This may prevent someone from having access to information which could help them with their role.
- Disorganised workflow – Lack of cohesion creates a barrier to a smooth workflow, reducing productivity and increasing wastage costs. This can harm your reputation if factors such as inaccurate scheduling leads to errors and disappointment for customers.
SMEs looking to find solutions for overcoming these challenges have enhanced their performance levels through the implementation of MRP systems.
What is an MRP System?
When MRP systems (Material Requirements Planning) were introduced into the manufacturing industry, they transformed the way businesses managed their manufacturing operations. ‘Materials Requirement Planning’ does exactly what it says on the tin – controlling the materials required for a job in order to accurately plan the production process. Computer-based MRP software allows companies to maintain production at desired levels by introducing such control. When an order is placed, the software is able to compare the material components required with a stock inventory and help produce a schedule. This gives operation teams the information required to produce the final products. Of course, there are many other elements which go into managing manufacturing processes, so the software evolved into multifunctional ERP systems.
Multifunctional ERP Software
The traditional MRP system evolved over time to become multifunctional ERP software (Enterprise Resource Planning). By incorporating all the functions required across manufacturing operations, it creates an enhanced picture of the overall process. Companies implementing ERP systems will find all the functions of an MRP system with the addition of other relevant elements of the manufacturing process such as accounting information, personnel data and supply chains.
An ERP system works by bringing all these functions together into a centralised database, helping businesses to easily coordinate their information, processes and resources. These features often include:
- customer & supplier information
- purchase orders
- scheduling and planning production
- workflow overview
- document linking
- delivery information
- diary functions
- data collection from the shop floor
- personnel information & reports
Each function is interlinked on the database, giving users easy access to the data they need. This creates efficient processes and allows for information sharing across the organisation. The success of ERP and MRP systems in the manufacturing industry has lead to its implementation in other sectors, using similar principles to develop their own software for business operations. The flexibility of the software means you can tailor it to your business setup, giving you access to only relevant and necessary functions. This has given small and medium-sized businesses a way to keep up with their competitors while remaining as cost-efficient as possible.
Benefits of Implementing an ERP or MRP System
Taking advantage of this beneficial software can bring many rewards to SMEs in the manufacturing industry.
- Creating cost-efficient processes
Businesses who implement MRP and ERP systems will find their management processes become more efficient than ever, measurably increasing productivity. Information sharing is enhanced across the business, eliminating the duplication of data entry, analysis and tasks. Information can be easily found and tied together which creates a digital workflow that’s clear, simple and accurate. The software also creates automation throughout operational processes, saving time. This allows the organisation to act as one body, rather than disjointed teams. Outstanding matters can be easily tracked and allocated, reducing costly mistakes and keeps a job open until it’s ready to be completed.
- Lowering your costs
There’s usually a fixed monthly cost for using ERP software as well as time taken to initially implement. However, the time saved from using an ERP or MRP system can lower your costs and save you money in a variety of ways.
- Streamlined processes for enhanced efficiency
- Decreased manual entry
- Less time spent on administrative and operational duties
- Fewer capital expenditures
- Maintaining the lowest possible levels of products and materials
- Reduce wastage
- Fewer costly mistakes
- Less requirements for expensive third party applications
- Enhancing customer satisfaction
Low customer satisfaction levels occur when businesses over-promise and under-deliver, leaving customer angry, disappointed and reluctant to use such services again. Implementing MRP or ERP software can help a business build a solid reputation with its customers. By creating accurate timescales, clear schedules and an organised operational workflow, manufacturing companies can produce and deliver products in a timely fashion while managing customer expectations. Fulfilling promises successfully will not only increase customer satisfaction levels but enhance your company’s credibility and generate repeat orders from the same clients and those they’ve recommend your services to.
- Growing your business effectively
By centralising data into one place, businesses can now receive an accurate overview of the manufacturing process at any time to determine company position. Jobs can be tracked throughout from quotation through to invoice payment, making it easier than ever to see real-time information. It’s important to clearly see these aspects to understand the business’ true position, measure success and highlight areas for improvement. You’ll also be able to forecast growth and cope with increased demand effectively by making fast and accurate decisions.
Finding the Right ERP or MRP Software
When considering introducing an ERP or MRP system to your business, the next steps are to work out your business objectives and the challenges you want to overcome. This should involve bringing in other members of your team to fully appreciate your individual business needs so that you can form some joint goals for the software. You can then consider which software company can provide you with a system meeting such objectives.
Here at Statii, we specialise in providing ERP and MRP software to manufacturing SMEs, so you can successfully manage your operations with ease while having a full overview of your business operations. Our simple software allows you to integrate all the core functions you require for increasing your efficiency.
Our software functions include:
- The Dashboard – a simple, real-time overview of your business
- Customers & Suppliers – all the information you need including basic information, orders and reports
- Enquiry/Quotation – the simple way to compile costings
- Sales Order – linking together all relevant documents, forming the hub of the entire business process
- Works Order – job management screen
- Purchase Orders – management of goods coming in
- Route Cards – clear instructions for operations
- Shop Floor Data Collection – collect data for time, attendance and employee efficiency
- Inventory – stock control with automated adjustments
- Scheduling – production planning screen
- Diary – communication tool for users
- Personnel – using Shop Floor Data Collection to manage employees including reports and trend analysis
- Delivery Notes – delivery information
- Invoicing – invoice creation and credit limit management
Why Choose Statii Software?
DESIGNED BY MANUFACTURERS
Unlike traditional systems which have been developed by software developers, Statii’s ERP software has been developed by manufacturers for manufactures. Our backgrounds are predominantly manufacturing and engineering based, meaning we have a wealth of experience in these industries. We understand the challenges you face and what SMEs need to stay ahead of their competitors. Our software is ideal for the setup of smaller companies, providing only the functions you need. There’s no significant upfront investment and no hidden support costs, giving you a budget-friendly option.
LONG TERM SOLUTION
Breaking the boundaries of conventional systems, our unique software is continually enhanced using the feedback we receive from our hundreds of customers throughout the UK and abroad. This creates a sustainable solution that will allow you to meet ever-changing business demands on your company. Our software will only get better which is essential for you to remain competitive.
Our software has been developed with ease of use in mind, providing a common interface to all users. Each function is simple to understand, reducing the time spent on training users. There’s plenty of help available, with online and telephone support as well as online training during implementation. On-premises training can be added to your package if you would prefer. We also give you a seven-day test drive with your chosen package to see if it’s suitable for you and, we’ve created some tools to help you including a demonstration video.
We use a world class leading server provider, ensuring you have a level of data security which would be expensive to achieve in-house. Keeping your data safe, secure remote server locations minimise the risks of information being stolen, lost or shared.
FLEXIBLE SOFTWARE PACKAGES
Along with our range of packages, you can also try our free version of the software, Statii Liite. This gives you the opportunity to try out some of our basic features and understand its benefits. Our packages operate on a one-month rolling contract basis, so you’ll never be tied into a long term commitment. We offer different sized packages depending on your company setup and business objectives, allowing you to choose the package that’s right for you.
What to Do Next
When considering an MRP system, you need to think about the next steps. Always keep an open mind when thinking about the changes you’ll need to make, and be aware that you’ll need to set aside the time to initially implement. Depending on your current setup, for some this can take longer than others. Our experts will support you throughout, giving sound advice, tips and help you to maximise the software to its full potential.
- Our advisors never give you the hard sell, providing you with the information you need to make your own decision.
- Use the tools and resources available on our website to help you with your choices.
- Check out the various packages we offer and what they include, comparing to your business objectives.
- Get in touch with our friendly team who’ll be more than happy to answer your questions and give you any information you need.
Call us on 01623 749 739 to receive more information and get expert support about Statii software.