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Manufacturing Software Ups the Stakes

By: Kingston J. Amadan Just as Material Requirements Planning software applications have given way to Enterprise Resource Planning Suites, the latest ERP incarnations are moving into new territory and giving manufacturers far more reasons to upgrade their systems.

Though MRP systems still hold their value and are widely used by many manufacturers, ERP systems are the weapon of choice for pull system management with manufacturers who require airtight inventory control. What was lacking in ERP systems was the forecasting ability that push system provided. Because MRP solutions center on push system dynamics, many manufacturers opt for both in order to get he best of worlds. With the latest developments on the market, that strategy will soon become a thing of the past.

The detriments to using both MRP and ERP are obvious, with incompatibility between two separate systems requiring dual management of inventory parameters. Replenishment becomes an issue when the two are out of sync, which can easily happen. The latest generation of ERP systems are able to work around those issues by providing push based inventory analysis and forecasting within a pull system scope. Data can be updated in real time and forecasting measures implemented off the virtual system within a system.

The benefit to manufacturers is the ease of data compilation and user friendly forecasting approach of a traditional MRP system that operates within the parameters of a modern ERP. Material planning and other high level functions are handled by the ERP without compromise, giving manufacturers ultimate control over input and outcome every step of the way. Other ERP applications that are widely used by many manufacturers are unhindered by this two tiered approach.

Which additional features wait on the horizon is unknown, but with the improved functionality now available, the next ideal step is more automation of ERP capabilities. While ERP systems are far more user friendly and intuitive than ever, they still haven’t managed to catch up to the abilities of other popular business software solutions for Accounting, CRM and business intelligence. If the relatively short time frame between previous strides toward improvement offers any indication of things to come, manufacturers will soon be able to lessen the managerial burden that ERP systems help on one hand while hindering on the other.