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Modern material requirements planning (MRP) with SAP

  • Assistance-supported requirements planning and management directly in SAP Business One
  • Location-based automated planning or scheduling runs & planning scenarios
  • Optimize warehouse, ordering and production processes and save costs

Integrated MRP module Material Requirements Planning with SAP Business One

With the integrated SAP MRP Wizard, you can create material requisitions at the company level or for specific warehouses.

SAP Business One MRP: Wizard-supported management of your requirements planning

SAP Business One's Material Requirements Planning (MRP) manages demand planning through a wizard-based process. Through this process, users can define a planning scenario in six simple steps to predict the demand for materials, components for production and manufacturing, and goods based on forecasts.

The SAP Business One MRP Wizard guides you step-by-step through the scenario definition process and provides comprehensive support for every step of the demand planning process. The program recommends which purchase orders, production orders and stock transfer requests should be created in order to achieve an optimal inventory level via the corresponding follow-up processes.

In the following video you can see, among other things, a demo of the SAP MRP Assistant. The most important component here is the MRP run (also MRP run, planning run or MRP run), which can be regularly automated or manually executed. This run determines the material requirements for each production and warehouse location for a specified period of time.

The basis for this are production or customer orders, which are compared with the actual stock in the second step. Completed as well as not yet delivered orders are taken into account. Watch the video to learn how material requirements planning with SAP Business One helps you meet delivery deadlines, ensure intelligent planning of production and warehouse inventory, and achieve your business goals.

Optimize your warehouse, ordering and production processes

SAP Business One Material Requirements Planning (MRP) uses the MRP Wizard to create intelligent forecasts and recommendations for purchase orders and production orders based on the current status of transactions in the system. For small to mid-sized companies, this program architecture provides the right balance between automation and manual control in planning.

Basically, MRP in SAP Business One works like an expert system that determines when you should buy which quantity of a particular purchasing item or when you should produce which quantity of a particular assembly or semi-finished product.

Based on recommendations from forecasts, you can have automatic purchase orders and production orders created directly on the SAP MRP interface. Then simply consolidate individual vendor purchase orders into a single purchase order to further streamline the purchasing process and keep planning for material requirements clear.

In doing so, the system does not directly send purchase orders automatically, but only suggests the purchase orders determined as necessary via the wizard. You can then use the order ­recommendation­function to convert the orders that have been prefabricated and recommended in this way into actual orders.

Before creating them, your procurement experts - e.g. purchasing specialists or production managers - can view and improve the order recommendations. This is especially useful at the beginning, as demand planning specialists often have specific knowledge that goes beyond the MRP's forecasts and calculations.

SAP Business One MRP Functions

  • MRP Wizard - The wizard helps you plan and optimize future material requirements. You can then manage and execute both purchasing and manufacturing recommendations, as well as necessary exceptions. If available, the wizard also considers inventory and material requirements of multiple locations when planning.
  • Recommendations - Material Requirements Planning in SAP Business One considers various supply and demand sources for its recommendations. These include existing inventory levels, planned production orders, open purchase orders, actual sales orders, forecasted orders, master data such as bills of materials, and planning data such as lead times, replenishment lead times, lot sizes and minimum inventory levels.
  • Modeling - The results, recommendations and exceptions screens in the SAP MRP module allow you to clearly sort and filter MRP pegging information. In addition, you can prepare data for actual documents and requirements (forecasts or sales orders) for planning, as well as edit individual purchase order quantities.
  • MRP Results - SAP Business One Material Requirements Planning can be executed manually at any time or its automatic execution can be scheduled at specific intervals. Two particularly interesting uses are modeling and "what if" scenarios, which can be used to play out various future developments, including material requirements planning.

Your benefits from material requirements planning using SAP Business One

  • You reduce errors! - SAP Business One MRP replaces informal, error-prone production planning based on the instincts of one or two people with a structured process that gives multiple people access to better information.
  • You reduce direct costs!- SAP Business One MRP helps reduce costs by taking into account both minimum order quantities and order multipliers, and helps users take advantage of quantity breaks for purchase prices or standard batch sizes. At the same time, you reduce inventory costs.
    Focus on strategic management! - Procurement managers can focus on strategic sourcing instead of worrying about inventory accuracy.
  • You reduce inventory and promote JIT processes![nbsp]- Reduce safety stock or multiple orders for the same item by different warehouse or purchasing managers - a big step towards just-in-time logistics!
  • You increase customer satisfaction![nbsp]-Improve your customer service with on-time delivery and fewer bottlenecks and out-of-stocks. At the same time, the modern, assistant-supported process for planning materials enables you to react faster and more efficiently to increasing or decreasing demand in the future.

Would you like to learn more about MRP with the SAP MRP module? Our experts will be happy to advise you! As an official SAP partner, we support small and medium-sized companies in the planning, installation, support and expansion of their ERP solution from SAP. In addition to material requirements planning, SAP Business One offers numerous other functions, for example for purchasing, sales and distribution, warehouse management, ERP and PPS system, service and support, project management, accounting and asset accounting. We would be happy to inform you about the advantages of the ERP system for SMEs or present the possibilities to you within the scope of a free demo version.