How MRP Systems Reduce Costs & Improve Profits for SMEs

How small to medium manufacturing business can utilise MRP system functionality to gain a competitive advantage by managing operating costs and developing a consistent profit margin.

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"We have never used any MRP software previously, and it is adding loads of benefits to our company."

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MRP Systems Helping Businesses Stay Ahead of Their Competitors

Do you want your manufacturing company to stay ahead of the competition and maintain its market position?

Overcoming organisational challenges is part of every successful business cycle and is essential for managing growth effectively. SMEs face many hurdles when creating efficient processes, and MRP systems (Material Requirements Planning) can provide them with the solutions they need. This includes creating a solid management process which links each function of manufacturing operations. From this, ERP software (Enterprise Resource Planning) was developed to include other relevant business functions such as personnel data and financial information.

ERP and MRP software provide businesses with simple, sustainable ways to increase efficiency via cost-effective processes. All business functions are combined in a central database, streamlining operations and reducing costs. Our unique software is easy to use, clear and was developed by manufacturers for manufacturers.

It’s been created specifically with SMEs in mind, so you can choose the package you need for your business setup. We continually develop our software, meaning it’s a sustainable option as your business grows, allowing you to stay ahead of the competition. If you would like to find out more about Statii software, give us a call on 01623 749 739.

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.

Why Organised Operations Are Essential in Manufacturing

The key to achieving desired manufacturing levels is a well-organised operation with cost-efficiency at its heart. Maintaining such levels affects every part of the customer experience from minimising errors through to receiving the final product on time.

Factors such as complexity of operations and company setup alter which strategies are used to create efficient processes.

Manufacturing companies face many challenges to meet demands and stay ahead of the competition in such a crowded industry. Manufacturers must overcome these or suffer consequences such as loss of customers, trade and reputation. This can be especially hard for small and medium-sized businesses.

If you want to improve your business’ performance levels, you need a solution which overcomes these challenges to help you save time, money and create seamless operational processes.

Challenges Small and Medium-sized Businesses Face Include:

  • Failure to keep up with demand and deliver on customer promises
  • Inability to manage business growth effectively
  • Lack of digital workflow (often paper-based)
  • Unclear scheduling
  • Lack of analysis in areas such as staff performance
  • Unclear overview of the company’s true market position
  • No cohesion between each section of the business, leading to disjointed operations
  • Reliance on one person (usually the business owner) to manage each process
  • Too much time spent on manual entry and admin
  • Duplication of data and tasks across teams
  • Lack of prompt payment system

MRP Systems – What Are They?

MRP systems (Material Requirements Planning) were originally developed to help companies overcome issues with efficiency by giving them greater control over the materials used in the manufacturing process.

Computer-based MRP software gives companies greater inventory control and production planning abilities. This means when an order is placed, the software can be used to easily determine the materials required to create the final product (thus the name ‘Material Requirements Planning’), compare with inventory levels and clearly schedule the operations needed to achieve the result. MRP systems have become a staple part of production planning in the manufacturing industry, helping businesses to keep up with competitors and manage customer expectations.

How MRP Software Evolved to Create ERP Systems

While MRP systems changed how the manufacturing world operates, like anything in the technological industry, further developments lead to new software evolving, enhancing the role of previous tools. In the case of MRP software, it’s evolved over time to include other elements of business operations.

Manufacturing success relies on more functions than the basic operations, so bringing each part together was the logical next step. This type of software is known as ERP (Enterprise Resource Planning). Each ERP system incorporates other organisational elements such as accounting functions and employee performance into the software.

ERP Functionality

Helping businesses to manage all the information, resources and processes involved in manufacturing, ERP software includes functions such as the management of:

  • customers and suppliers
  • purchase orders and delivery notes
  • quotations
  • orders
  • stock Inventory
  • production planning
  • scheduling & diary
  • shop floor & personnel data
  • invoicing

Benefits of ERP and MRP Systems

Businesses who take full advantage of this software will gain a wide range of benefits:

  1. Enhance the customer experience – They key to staying ahead of the game when it comes to competitors is the ability to meet the ever-changing needs of customers. This involves implementing a system which is able to keep up with demand. MRP and ERP systems allow businesses to manage customer expectations. The various functions provide the ability to create accurate timescales, organised scheduling plans and timely product delivery. Being able to successfully fulfil customer promises ensures high levels of satisfaction, enhance your company reputation and generate repeat orders. Customer service is also enhanced by the simple tracking of orders and every part of the process being in one accessible database.
  2. Lower your costs – While there is usually a fixed monthly cost of using an ERP system as well as the time it takes to implement, enhancing your efficiency will help to streamline your processes and lower your overall costs. This includes creating a cohesive organisation that shares central data, eliminating the need to duplicate tasks and spending less time on administration and operational duties. This helps companies to maintain the lowest possible material and product levels, creating fewer capital costs, reducing wastage and working towards leaner manufacturing processes.
  3. Centralise data – To see an accurate overview of your business, it’s crucial to see real-time information whenever you need it. ERP software provides this function and allows tracking of a job right through from the first quote to order, scheduling, production, delivery of the product and invoice payment. It’s also possible to highlight outstanding matters to team members, creating greater across-team communication.
  4. Automate your processes – Traditional methods of managing manufacturing processes often result in users having to navigate complex functions, spend time locating information, tying data together and timely data entry. This is especially true when operating through paper-based methods and spreadsheets. Lack of digital workflow creates disjointed systems and creates a lack of efficiency. ERP and MRP systems eliminate this issue by creating an efficient system which automates processes by linking them together, saving time and improving productivity.
  5. Manage growth effectively – As your business grows, simplifying your operations and functions will be the key to successfully tackling growth as easily as possible. By providing software which allows users to make fast and accurate decisions, ERP systems helps businesses to proactively manage growth. This prevents delays, allowing companies to deliver on customer promises and protect their reputation. Having a clear overview of real-time information will also help businesses to forecast areas of potential growth and identify areas for improvement. You can also measure estimated profit against actuals, thus enhancing your analysis of success.

Finding the Right ERP or MRP System for Your Business Setup

When choosing the right ERP or MRP system for your business, it’s important to define your objectives as a company and understand your current market position.

This may involve consideration for where you would like your business to go and what challenges you need to overcome. It’s also important to speak to your various teams to establish their needs.

You’ll then be able to determine exactly what you need from the software.

Here at Statii, we specialise in providing ERP and MRP systems for small to medium-sized manufacturing companies. Our intuitive, simple software provides multiple functionality across your operations, incorporating everything you need to enhance your productivity and efficiency.

Statii Features:

Companies can work smarter and improve their business performance by using Statii software to unlock their full potential. Users have access to all the key information they need through our multiple functions. These include:

  • The Dashboard – a live snapshot of your business in less than ten seconds
  • Customers & Suppliers – maintenance and basic data sharing throughout the organisation
  • Enquiry/Quotation – keep track of quotes and expected costs
  • Sales Orders – the business hub linking all relevant documents
  • Works Orders – job management screen
  • Purchase Orders – positively control the goods coming into your organisation
  • Route Cards – create a smooth operational flow with instructions to the shop floor
  • Shop Floor Data Collection – employees’ time, attendance and efficiency
  • Inventory – complete stock control management
  • Scheduling – a snapshot of workload against capacity
  • Diary – internal communication tool
  • Personnel – manage data collect from the Shop Floor Data Collection including comparing records and analysing trends
  • Delivery notes – delivery information screen
  • Invoicing – managing credit limits and the issuing of invoices, used alongside accounting software

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Next Steps:

If you’re ready to take your business on the next steps towards success:

  • Keep an open mind about the positive changes to come.
  • Make a commitment to spend time implementing the software, so that it can help your company reach its full potential.
  • Use the tools and resources on our website to explore our software functions.
  • Choose the right package for your business needs.
  • Get in touch with our friendly advisors. They never give you the hard sell, having been where you are today.
  • All our packages operate on a fixed monthly cost with a rolling one-month contract, never tying you in to a lifelong commitment.
  • Let us support you to get the most out of our ERP system.

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