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The MRP system provides you with significant improvement in production and material demand management.
It enables precise planning of material requirements because it is based on customer orders and the production plan. Thanks to this, the company can avoid excessive storage and minimize the risk of supply shortages.
Forecasting demand based on data and trends will ensure the security of maintaining continuity of work on the production line and meeting order fulfillment deadlines.
MRP software allows you to create optimal production schedules, taking into account the availability of raw materials and materials, because the planner can see the supply status of processes in orders on an ongoing basis.
MRP (Material Requirements Planning) and MRP II (Manufacturing Resource Planning) systems are IT tools used in production management and controlling the availability of materials in manufacturing companies. Both systems are related to material planning and control, but they differ in the scope of functions and complexity as well as the level of advancement in production management. Understanding the basic differences between MRP and MRP II is crucial when choosing the right system tailored to your company's needs.
MRP I mainly focuses on planning the materials needed for production, such as raw materials, components and parts.
Lack of integration with other areas
This system does not fully integrate with other management areas such as capacity management, labor management, or finance.
A simple planning model
MRP I uses a simple material requirements planning model based on product structure and customer orders.
Focus on inventory control
The main goal of MRP I is to control inventory levels, minimize overages and shortages, and ensure that the right materials are available at the right time.
An advanced system that integrates materials management with other areas of the company's operations, such as production management, capacity management and finance.
Production capacity planning
MRP II takes into account the production capacity and efficiency of machines and employees, which allows for more accurate production planning.
A broader time perspective
This system has the ability to plan for a longer period of time, taking into account the company's long-term goals and strategies.
Complicated planning algorithms
MRP II uses more advanced planning algorithms, which allows for more precise production and resource management.
The system uses intelligent algorithms that allow for precise and flexible adjustment of material reservations, even in the case of quantities inconsistent with the original order. Additionally, MRP automatically notifies new deliveries of materials based on demand analysis.
MRP II introduces advanced tools for managing production and procurement processes that highlight supplied processes on the production plan. This allows you to create a visual schedule where the planner can easily identify those processes that are already equipped with the necessary materials and components.
The system provides warehouse workers with detailed information regarding material reservations and specific types of raw materials assigned to production orders. MRP II allows you to precisely locate the place in the warehouse where a given raw material is located, which significantly facilitates the process of preparing materials for production.
The MRP II system provides the ability to create sales plans based on the analysis of forecasts, trends and historical data on reservations and orders. Thanks to this feature, the company can accurately determine the expected demand for products in the future, taking into account changing market trends and sales patterns.
Advanced functionality of the MRP II system enabling real-time tracking of raw material consumption during production. This means that the company can monitor how much raw materials and supplies are actually used when executing production orders. Importantly, the system takes into account changes in material reservations and current inventory levels, which allows you to precisely determine how many raw materials remain available at a given moment.
The MRP system generates material needs based on the specific number of customer orders and detailed production schedules. This strategic approach enables precise sourcing of necessary materials and components when they are actually needed, eliminating the need to accumulate excessive inventories in warehouses.
One of the main challenges in production management is ensuring that necessary materials do not run out during the production process. Thanks to MRP, the company can plan its material needs based on the specific number of production orders and production schedules. As a result, materials are ordered and delivered in advance, which eliminates the risk of production interruptions due to lack of raw materials or components.
The system allows you to collect and group material requirements and then generate collective orders from them to the supplier. This solution is important for effective supply chain management and materials management. By aggregating individual material needs from various sources, the company is able to place a larger, collective order with the supplier. This, in turn, translates into significant savings, because more materials often mean better pricing.
The system takes into account available raw materials and materials, allowing you to precisely determine what resources are currently available in warehouses. Knowing about reservations helps you avoid situations where the same materials are reserved in different production orders. Information about unreserved materials allows for efficient planning by allowing the appropriate quantities to be reserved for production orders.
Advanced tools for tracking the supply status allow you to monitor the full life cycle of each production order, starting from the initial demand for raw materials, through the stage of creating an order or assigning a delivery, until the reservation is consumed during production.
Good to know
The presented solution is only a demonstration of aveneo's technological capabilities. Our mission is to provide dedicated software (created together with and for our clients) that will be fully adapted and optimized to the operating model and business processes, and not to offer a ready-made, universal product that will require a number of compromises.
Ensuring high quality products by monitoring and managing the quality of raw materials and components.
Accurate demand forecasting based on historical data, forecasts and trends.
Optimizing purchasing processes allows you to obtain better prices and conditions from the supplier.
Improving customer relationships through on-time deliveries and faster response times.
Reducing the volume of work in progress thanks to continuous condition monitoring.
Better internal communication thanks to an internal communicator.
Optimized use of resources thanks to full control of the load on production stations.
Improved timeliness thanks to an organized and realistic production plan.
Lead time compression - shortened production cycle by minimizing breaks between processes.
Lean warehouse stocks thanks to precise monitoring of delivery dates.
Increased productivity thanks to better inter-process synchronization.
Monitor production progress in real time.
Streamline production planning, optimize resource allocation, and ensure on-time delivery with our Advanced Planning and Scheduling (APS) software.
Optimize your warehouse operations and enhance inventory management.
Monitor and control your manufacturing processes in real-time for improved efficiency.
Trace production in every aspect - from raw materials and components to the finished product.
Ensure product quality and compliance with robust quality control processes.
Enhance customer relationships and improve communication with a dedicated CRM system.
Yes. Supplying production processes with a backup source of raw materials is a natural extension of the normal supply process. Procurement software is very dependent on the nature of production. If the raw material is obtained as a result of participation in auctions or is obtained sporadically and somehow dictates the production possibilities, the software should be designed in such a way that the starting point is the material and optimize other processes and departments using this criterion.
This is a very common problem that we have faced many times. The best solution to the situation is to build a logistics portal in which each supplier will have an account and will notify specific deliveries, confirming quantitatively the delivery of raw materials and components. This will also allow you to exchange quality documents, control settlements and build your own supplier classifier. Thanks to this, orders can be placed with those suppliers whose ranking will be as high as possible.
When designing software and being aware of such a situation, we always recommend marking trial production processes and then automatically suggesting the use of leftover stock, if any, in the supply module. This allows you to reduce the costs of trial production and better manage the raw material that could potentially be intended for disposal.
Of course. Ordering small batches does not allow for price negotiation. It's different if we group all requirements from a given period and submit one, larger inquiry. We can also add, for example, the prediction of future demands based on complex production offers, for even larger orders and even better prices.
Yes. However, this requires integration with the warehouse module and, ideally, with the MES production module. Thanks to such integration, the status of raw materials or components in the local warehouse in the supply module will always be up to date and we will be able to prevent situations when, for example, they are needed at two stations at once.