Demand Driven Material Requirements Planning

Odoo Partner
October 21, 2019 by
Demand Driven Material Requirements Planning
Ali Atwi
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Material Requirements Planning was a concept that came out to play during the fifties. It was computerized in the sixties. Along with that, it has come a long way, and it is currently dominating the manufacturing industry. You can think about calling Material Requirements Planning as the dominating planning principle used within the industry as well.
Back in the day, we could mainly see local manufacturing of products. However, processes changed significantly along with time. As of now, you will be able to see globally spread supply networks. This has given a set of new and unique challenges to Material Requirements Planning as well. It is essential to take appropriate measures to address these challenges promptly. Otherwise, your manufacturing business will be forced to function within a reactive mode. In other words, you will not be able to get any efficient work done with your manufacturing business.
You will be manufacturing products without a specific forecast. This can often lead you towards overstocks and shortages. It would also result in many adverse effects. For example, you will have to implement price cuts and promotions to send out the excessive inventories that you have. Such a situation would hurt your revenues. As a result, your customer loyalty and top-line will be negatively impacted. Pressure will eventually be passed down to the bottom line, where they have to deal with shrinking margins.
You don’t need to worry about encountering such conditions because support is available out there. All you have to do is to think about getting the help of Odoo ERP. It can help you to overcome these issues by aligning demand-driven Material Requirements Planning to practical consequences that take place in today’s world. You will be able to use the assistance of this ERP to ensure a transition into a proactive state. Along with that, your company will get the chance to stock buffers, so that you can cut down all the lead times. In other words, it can help you to ensure demand-driven Material Requirements Planning at the end of the day.
How can ERP support material Requirements Planning
Material Requirements Planning can introduce stock buffers to the manufacturing process. These stock buffers are in a position to decouple supply from demand. In other words, it can help you to make supply and demand independently. This can eventually help you to end up with two-fold results.
When you take a look at the demand side of the buffer, you will notice that it is offering availability for the consumers or materials. If the buffer is in a position to fulfill the mission, you can make sure that lead time for all the parts constrained by the buffer would reduce. This will be a part of cumulative lead time. In the meantime, the remaining will be called as the unprotected lead time.
When you take a look at the supply side of the buffer, you will notice that it is functioning effectively as a wave breaker. In other words, you will be able to spot it absorbing and aggregating the variations in demand. This can provide extra protection to the suppliers, including external suppliers and internal resources, to stay away from the buildup of bullwhips.
It would be best if you also understood that Material Requirements Planning buffers are in a position to decouple the entire supply network into several smaller sections. Along with that, the buffers will prevent variation from taking place. In other words, variation will not create any impact on the supply network. So, you will be provided with the chance to cut the lead times. The end result of this would be to ensure that planners are capable of relying on the best demand signals offered to support the decisions.
You will be provided with the chance to apply these principles of Material Requirements Planning and get your work done effectively with the help of Odoo ERP. Therefore, you are strongly encouraged to pay more attention to getting hold of the ERP. You will love the results and benefits that Odoo ERP will be able to deliver to you.
While taking a look at the Odoo ERP implementation, you should also understand the fact that you are not in a position to proceed with this ERP implementation on your own. A large number of factors have to be considered when moving forward with the ERP implementation process. That’s where you will need to get the help offered by an ERP implementation partner.
A proper gap analysis has to be done before Odoo ERP implementation. Otherwise, you will not be able to get the maximum out of the ERP to benefit your business. You will not be able to optimize your Material Requirements Planning process fully with the help of the ERP as well. The ERP partner you select will be able to do that gap analysis to you and make sure that all aspects of your Material Requirements Planning process are mapped into the system.
On the other hand, you need to get proper training on how to use the Odoo ERP efficiently. You cannot learn it through a trial and error method. It will make you spend much time. Along with that, you will also end up making some expensive errors. This is where you will need to learn the right process to use the ERP from the beginning and move forward with it. Your Odoo ERP partner will provide you with proper training to you, and you will be able to figure out the most optimum path to follow with ease.
If you want to experience all these benefits, you need to contact ERP Cloud. They can act as your ultimate Odoo ERP partner and help you experience a variety of benefits.

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Demand Driven Material Requirements Planning
Ali Atwi October 21, 2019
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