Efficient Purchasing with Reverse MRP

Smart business managers are always chasing efficiency. This drive created operating methods such as lean manufacturing, six sigma, and kaizen. But while an overarching methodology can guide your goals, you’ll still need the right tools to carry out your vision. You need tools designed by people who understand business best practices and are creating tools to help you reach their goals. One such tool is Cetec ERP’s MRP (Material Resource Planning) is a software tool encompassing the different pieces of the supply chain for efficient inventory management.

If you have been using Cetec ERP for a while, you’re aware of our MRP assisted purchasing tool. It’s a dynamic, one-stop-shop report based on real-time inventory forecasts connected to your production schedule. Cetec ERP’s MRP shows components you need based on supply and demand, reorder quantities, and late purchase. The MRP tool factors in component lead-time and work order start dates to empower your team to proactively buy necessary materials for production while staying efficient in the cash flow.

But what happens when customers start canceling orders or pushing them out? How do you deal with open purchase orders that were placed to meet material demands for now obsolete orders? Cetec ERP’s ‘Reverse MRP’ has you covered.

While MRP picks up new orders, drop ins, rescheduled orders, and more, Reverse MRP captures purchase orders without demand, meaning an order was canceled or pushed out. This allows purchasing to manage purchase orders more efficiently, and better control inventory.

It’s no secret that manufacturing is a fast-paced environment. Components change, orders get canceled, and you need to stay on top of it all if you don’t want to lose out to your competition. That’s why Cetec ERP provides you with a report that lists purchase orders containing components for orders you have since closed. This gives you a heads-up to cancel those orders and keep your business running lean!

Want to learn more about running reverse MRP? Check out our guide here.