In the manufacturing industry, SMEs face many challenges when trying to run as efficiently as possible. These include overreliance on the business owner to oversee all operations and lack of cohesion across the organisation. Manufacturing companies are choosing to implement an MRP system (Material Requirements Planning) to help give them greater control over their operational processes from ordering through to final payment. However, there are other functions involved in the process which has led to ERP software (Enterprise Resource Planning) evolving from the tradition MRP system.
Benefits of Implementing an ERP or MRP System
MRP systems were first introduced to give control over the materials involved in the manufacturing process including management of stock inventory and scheduling.
ERP systems developed to include other aspects such as certain accounting functions (e.g., invoicing and quotations) and monitoring employee performance. This helps businesses create an overall real-time picture of their operations and tie together each function.