Cloud Based Mrp Software | Optiwise
Learn how cloud based MRP software helps manufacturers plan material requirements, avoid shortages, reduce excess stock, and improve production planning with AICAN Optiwise.
Cloud Based MRP Software: A Practical Guide for Manufacturers
Material shortages are rarely random.
They usually happen because demand, BOM, stock, purchase, and production plans are not connected clearly enough. A sales order arrives. The production team needs material. Stores checks stock. Purchase starts follow-up. Somewhere in between, a critical component is missing and the whole plan slips.
Cloud based MRP software helps prevent this by calculating what material is required, how much is available, what is short, and what needs to be purchased or produced.
For manufacturing SMEs, MRP is not just a planning tool. It is a way to reduce firefighting.
AICAN Optiwise helps manufacturers connect material planning with inventory, purchase, production, BOM, and sales order visibility.
What Is Cloud Based MRP Software?
MRP stands for Material Requirements Planning.
Cloud based MRP software is an online system that helps manufacturers plan material requirements based on demand, BOM, inventory, and lead times.
It helps answer:
- What do we need to produce?
- What materials are required?
- What stock is available?
- What is already on order?
- What is short?
- When should we purchase?
- Which production plans are at risk?
Because it is cloud based, authorized teams can access planning data from different locations without relying on one local machine or manual file.
Why MRP Matters
Manufacturing depends on material readiness.
A factory may have machines, operators, and customer orders, but production cannot start if required material is missing.
MRP helps reduce:
- Production stoppages
- Urgent purchases
- Excess inventory
- Missed delivery dates
- Manual BOM calculations
- Purchase confusion
- Over-ordering
- Under-ordering
- Poor coordination between sales, stores, purchase, and production
MRP improves planning because it connects demand with material logic.
How MRP Works
MRP typically uses four major inputs.
1. Demand
Demand may come from sales orders, forecasts, or planned production.
2. Bill of Materials
The BOM defines the materials required to make each finished product.
3. Inventory
The system checks available stock, reserved stock, and sometimes pending receipts.
4. Lead Time
Lead time helps decide when material should be ordered so it arrives before production needs it.
The MRP output may include shortage reports, purchase suggestions, planned orders, and material requirement summaries.
A Simple MRP Example
Suppose a factory needs to produce 500 units of Product A.
Each unit requires:
- 2 units of Component X
- 1 unit of Component Y
- 0.5 kg of Material Z
Total requirement:
- Component X: 1,000 units
- Component Y: 500 units
- Material Z: 250 kg
Current stock:
- Component X: 600 units
- Component Y: 700 units
- Material Z: 100 kg
Shortage:
- Component X: 400 units
- Component Y: no shortage
- Material Z: 150 kg
MRP helps purchase act before production is delayed.
Benefits of Cloud Based MRP
Better Material Planning
MRP calculates requirements from BOM and demand, reducing manual mistakes.
Fewer Production Delays
Shortages become visible earlier.
Lower Excess Inventory
The business can buy based on requirement instead of fear.
Improved Purchase Coordination
Purchase teams see what is needed, when it is needed, and why it is needed.
Better Sales Commitments
Sales and management can understand whether material readiness supports delivery timelines.
Faster Reporting
Managers can review shortages, pending purchase, and production risks quickly.
Cloud MRP vs Manual Planning
Manual planning often depends on Excel, memory, and daily follow-up.
This creates problems:
- BOM errors
- Stock mismatch
- Missed pending purchase orders
- Delayed shortage visibility
- Duplicate planning files
- No clear link between demand and material
- Weak accountability
Cloud MRP creates a common planning view for the team.
Features to Look For
A good MRP system should include:
- BOM management
- Sales order or demand linkage
- Inventory availability
- Material shortage report
- Purchase planning
- Lead time tracking
- Work order linkage
- Pending purchase visibility
- Stock reservation where needed
- Reports and dashboards
- User access controls
For SMEs, usability matters. A system that is too complex for daily use will not deliver value.
How Optiwise Supports MRP
Optiwise by AICAN supports manufacturing planning by connecting the practical data needed for material decisions.
It helps link:
- Sales orders
- BOM requirements
- Inventory stock
- Purchase orders
- Production plans
- Work orders
- Shortage reports
- MIS dashboards
This helps teams move from reactive purchase follow-up to planned material readiness.
Implementation Tips
- Clean item masters before starting.
- Build accurate BOMs.
- Define units and consumption quantities properly.
- Capture opening stock carefully.
- Maintain purchase lead times.
- Record stock receipts and issues daily.
- Review shortage reports before production planning.
- Update BOMs when engineering changes happen.
- Train purchase, stores, and production together.
- Review MRP output weekly until the process stabilizes.
Founder’s Note
At AICAN, we see material planning as one of the most important controls in manufacturing. When material is unclear, everyone spends their day reacting.
With Optiwise, we help SMEs connect demand, BOM, stock, purchase, and production so planning becomes calmer and more reliable.
Learn more about AICAN at About AICAN.
FAQs
What is cloud based MRP software?
It is online software that helps manufacturers calculate material requirements from demand, BOM, inventory, and lead time.
How is MRP different from ERP?
MRP focuses on material planning. ERP covers broader business operations such as inventory, purchase, production, sales, finance, and reporting.
Can MRP reduce inventory?
Yes, if BOMs, stock records, and demand data are accurate. It helps buy based on need instead of guesswork.
Who should use MRP?
Manufacturers with BOM-based production, frequent shortages, or complex purchase planning should consider MRP.
How does Optiwise help?
AICAN Optiwise connects BOM, inventory, purchase, production, and sales order data for better material planning.
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