How can you measure the effectiveness of an MRP system in reducing inventory costs?

Otimizar sistema, treinar funcionários, manter estoque organizado e atualizado, manter foco em inventários, é muito importante para um controle de estoque e seu giro

Taxa de giro de estoque mais alta significa que você está usando seu estoque de forma mais eficaz e reduzindo o risco de obsolescência, deteriora??o ou custos de armazenamento excessivos.

Inventory Turn Ratio is a key KPI that needs serious attention. If you see your inventory turn decreasing you need to start deep diving. 1.Check the order forecast against actual delivery, forecast accuracy might be declining. keep at least a 80% accuracy rate 2. Lead time use to produce and ship from your supplier might have changed, this lead time might have gone down and you are ordering to early your parts 3. Inventory parameters in your MRP system might need to be adjusted with the 2 given factors I mentioned above. Note: ITR is an efficiency ratio that measures how well a company can manage its inventory. The higher the ratio the better as it reduce storage & other holding cost. MRP must detect changes and report this KPI immediately

I disagree, you don't have to do inventories all the time to keep you inventory accurate. What you need to do is cycle count to keep your inventory accurate.

We can do cost analysis month on month basis after monthly closing/ reconciliation. In this way we would be able to evaluate if our inventory costs is going down or not.

In several industry today current MRP system is supplemented by several visibility tools that can track your produced parts, your in-transit inventory and on-inventory in your warehouse. It is critical now a days to get real time information and integrate this to your MRP system. This provide immediate realities that can drive better and efficient decision making. By this your inventory accuracy will be more accurate and will provide you to plan better and use your MRP process to adjust parameters as needed. Being reactive on stock out or over stock or delay are lessons learned during the pandemic, we should now be better prepared in handling this type of situations by improving visibility and applying control tower technology or solutions.

Customer Service Level metric is the most important metric that the leadership needs to ensure is improving& maintained. To be an order driven organization OTIF is a must. Your MRP system should be able to measure this in real time at the same time will be able to eliminate delay delivery to your customer. If your MRP system can not capture real time information of your production achievement, forecast accuracy & delivery achievement you will need to supplement this with current technology in the market that can deliver this. Blue Yonder (ESP), Kinaxis, Logility, O9 & Digital Soft are several leading company that can provide this type of capability. But other than technology the organization need to have an order driven culture to succeed.

Purely measuring inventory value is not enough and will not really show how it affects the bottom line. Inventory carrying cost is normally the better way to understand how your inventory value affects your bottom line, before the pandemic I used a 5% inventory cost, but now a days because everything has increase this can be much higher. It is now most important that the carrying cost can be calculated in your MRP system with the assumptions that all the related cost can be captured from all your financial system. Having a regular review of this KPI provides the company an immediate view of the risk that the company can be expose on and can develop mitigating actions to reduce this cost immediately. Waiting until the end of the year is NG

The following can be use to measure ROI 1. Inventory Carrying Cost 2. Sales increase when you improve your inventory turn ratio 3. High Inventory accuracy reduce any type of expedite, excess inventory, long-term inventory, obsolescence, etc. 4. Other cost improvement can be develop that MRP is supporting such as, Scheduling adherence, delivery adherence, Forecast accuracy, Planning efficiency, etc. Try to capture the current condition for this metric with the related cost in between and measure it as you progress to measure ROI as you develop and improve your process using an efficient and effective MRP system.