The Importance of Material Requirements Planning in Food and Beverage Manufacturing

mrp in food and beverage

An Enterprise Resource Planning (ERP) solution provides food and beverage manufacturers with ample opportunities to improve operations. By connecting every part of the business, process manufacturers can automate processes, streamline efficiency and drive down costs.

With a food-specific ERP, a company can take its Material Requirement Planning (MRP) to a new level. By integrating inventory management, production scheduling, material ordering and financial tools into one cohesive platform, companies can optimize their MRP processes and maximize productivity. 

The Importance of MRP in Food and Beverage

While MRP software has been around for decades, the growth of ERP solutions has brought the practice into closer focus. By harnessing the computing power of an ERP solution, companies can change the way they manage production.

MRP relies on sales projections and information on inventory and available products. It begins with an assessment of the bill of materials, which details the ingredients and quantities necessary for production.

Next, MRP looks at existing inventory and the availability of required ingredients, along with the master production schedule. MRP tools calculate what materials are necessary and when they’ll be needed.

Knowing what’s needed, how much is needed, and when it’s needed helps companies:

  • Optimize inventory levels to reduce waste
  • Better prioritize production
  • Responsively plan to meet changing customer demands or consumer tastes

The Key to Ultimate Production Efficiency: MRP and ERP

An ERP solution that is built specifically for the food and beverage industry will come equipped with the MRP functionality you need to plan production effectively. Look for a software solution with the following features:

  • Inventory guideline management features that keep inventory levels optimized while meeting demand
  • Lot tracking and tracing to ensure that ingredients are used prior to expiration, reducing waste and promoting food safety
  • Master production planning tools to coordinate the scheduling of machines and personnel, including functionality for routing information, capacity data, delivery deadlines and purchase and sale order management.
  • Business intelligence that forecasts likely demand, analyzes trends and reviews order patterns
  • Visibility tools that manage work in progress to resolve production slowdowns or stoppages
  • High-level, real-time analytics that provide stakeholders and other employees with insights and enable better decision-making in the moment of need

FoodBusiness ERP is a full-integrated solution designed to help you manage your entire business, from production and operations to finance, food safety, quality, compliance, traceability and more. It includes out-of-the-box functionality built for food and beverage manufacturers. MRP features built into FoodBusiness ERP allow companies to manage multi-site operations by providing visibility into inventory and production at multiple locations at the same time. The solution also helps minimize production waste with MRP functionality that reduces the inefficiency of changeovers or length of sanitation processes.

Ready to learn more about how FoodBusiness ERP can take your production planning to the next level? Reach out to us. We’d love to chat.

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