Manufacturers and distributors rely on their ERP system’s planning software module to optimize the delivery of incoming materials and the movement of is inventory between facilities. With efficient planning, manufacturers can reduce raw material inventories and increase production output, while distribution companies can significantly reduce transportation costs and improve customer responsiveness and overall satisfaction.
For manufacturers, planning software functionality will include material requirements planning process (MRP) and capacity requirements planning (CRP). The MRP process will focus on such criteria as lead-time, yields, scrap rates, batch sizes, and bill of material or formulas. The CRP process will focus on work center schedules, labor requirements and efficiencies, machine set up times and maintenance schedules. As with many other areas within the ERP package, the organization’s planning software requirements will vary based on the industry and manufacturing environment.
For distribution companies, the planning software functionality of MRP is replaced by the distribution requirements planning process or DRP. The DRP process will review criteria such as warehouse dependencies, vendor lead-times and order multiples, an item’s desired service level, and other constraints such as container requirements and transit times if purchased from overseas.
When integrated into an ERP system, planning software functionality becomes imperative for leveraging demand requirements and optimizing these needs to produce the highest levels of order fill-rates and on-time deliveries.
Panorama’s team can help document an organization’s planning requirements and utilize this list of functional needs to help select the best ERP software package. Panorama’s ERP consultants provide a complete service offering that can assist your organization throughout the process of ERP selection, ERP implementation and organizational change management.
Our consultants are aware of the potential pitfalls of ERP selection projects and can help hedge against project cost overruns, software that is misaligned with business needs, and lack of return on investment. The ERP team has industry-specific expertise that helps achieve measurable business improvements.