Facebook-f X-twitter Linkedin Youtube Instagram
Learner Hub

Materials Requirement Planning – What is it?

A Materials Requirement Planning (MRP) system is beneficial for a range of businesses across the manufacturing sector. Nevertheless, understanding what it is, and how it can benefit your business is the key to maximising the advantages of an MRP system.

What is a Materials Requirement Planning MRP System?

Utilised in the production process to compare current inventory levels against production capacity, an MRP system is a decision making and planning tool that also analyses the need to manufacture goods based on forecasts.

MRP systems are a computerised technique that looks at requirements within a specific time frame and can schedule production as per bills of materials, while minimising inventory.

Is MRP and ERP the Same?

Whilst MRP and ERP systems are both types of software to use smart forecasting to help the running of your business. ERP can be used across a multitude of sectors, as well as supply chain management. In contrast, MRP is used solely to assist businesses in the manufacturing industry.

How Does an MRP System Work?

The basic function an MRP system is as follows:

  • Step 1: Exploding – This is achieved by utilising how many components are needed to prepare one item of manufacturing, also known as the Bill of Materials.
  • Step 2: Netting – The overall figure is provided by exploding, and is the net quantity of material calculated by computing the overall available stock in the factory by the gross requirement.
  • Step 3: Offsetting – The offsetting stage advises when the manufacturing process should begin in order to meet deadlines, alongside estimated lead time for the entire operation as a whole.

What Are the Advantages of an MRP System?

There are a number of benefits for your business by using an MRP system, such as:

  • MRP can be particularly helpful with regards to product customisation, and is focused on the materials required and when they are needed for.
  • In relation to the manufacturing of complex industrial products, MRP can assist with this, alongside playing a vital role in minimising factory inventory.
  • Typically, MRP is believed to have a further benefit because it is known to track and schedule every order whether it’s for purchase or production purposes.

Enhance Your Manufacturing Procurement Team

Do you have a procurement team in the manufacturing industry? Would you like to improve their procurement skills with added qualifications? SR Supply Chain Consultants offers a number of procurement courses, suitable for strengthening and maximising your workforce.

If you’d like to speak to one of SRSCC’s experts about any of our CIPS courses, you can contact us by calling 01772 282555 or email the team at info@srscc.co.uk.

SHARE THIS POST

Discover our CIPS Courses

Our courses are designed to accelerate your career in the procurement and supply chain industries. If you would like to learn more about our courses, call the SRSCC team on 01772 282555 or complete our contact form. Start your journey to success today.

CIPS Level 3

Advanced Certificate in Procurement and Supply Operations.

CIPS LEVEL 3

CIPS Level 4

Diploma in Procurement and Supply.

CIPS LEVEL 4

CIPS Level 5

Advanced Diploma in Procurement and Supply.

CIPS LEVEL 5

CIPS Level 6

Professional Diploma in Procurement and Supply.

CIPS LEVEL 6

Related Posts

Want to learn more? Contact our team now

CONTACT US
Materials Requirement Planning – What is it?
2022-05-11T14:27:21+00:00
mfmadmin
Bethanie Stimpson SRSCC

Bethanie Stimpson

Progress Mentor

Bethanie began her career in the fitness industry, working as a personal trainer and gym instructor before becoming involved in coaching children through a triathlon club. This experience sparked her passion for working with young people and ultimately led her into a career in education. She initially worked in a nursery and later as a one-to-one teaching assistant in a primary school, before completing her teaching qualification and postgraduate studies. Since then, Bethanie has taught in both the private and state education sectors.

Her academic background includes a qualification in Sports Development, Fitness and Coaching at college, alongside a Childhood & Youth undergraduate degree (2:1). These studies have enabled her to combine her interests in sport, education, and child development, shaping her holistic approach to teaching and mentoring.

Bethanie is passionate about supporting learners to achieve their goals — educationally, personally, and in terms of wellbeing. She places strong emphasis on communication and relationship building, and takes great pride in helping individuals build confidence and overcome challenges. One of her proudest achievements has been supporting learners who initially doubted themselves to grow in confidence and achieve success.

Outside of work, Bethanie has always maintained a strong interest in sport. She previously competed in triathlons and now focuses on running and swimming. In 2023, she completed the London Marathon — an achievement she is particularly proud of. She also enjoys spending time outdoors with her family and their two dogs, which is where she is happiest when not working.

Ola Kambul

Skills Coach

Ola began her career in supply chain within fast-paced warehouse and logistics environments, where she developed a strong understanding of operations and people management. Her journey into the Supply Chain sector wasn’t planned, but through hands-on experience she discovered a passion for improving processes and supporting others – which naturally led her into training and development.

She has progressed through a range of roles across operations, recruitment, and training, including Programme Coach and L&D Lead. She designed and delivered apprenticeship programmes, supporting over 40 learners to successful completion and contributing to strong quality outcomes and inspection success.  Her transition into mentoring was driven by a desire to make a direct impact on people’s confidence, growth, and career progression.

Ola’s mentoring style is supportive, structured, and empowering. She combines real operational experience with coaching expertise, helping learners apply knowledge in practical workplace settings. One of her proudest career achievements has been supporting learners who started with low confidence to achieve distinctions and progress into new roles within their organisations. She has also led a UK-wide Mental Health First Aider network, embedding wellbeing into workplace culture and supporting colleagues through challenging situations.

From day one, she shares a consistent message with every learner: “You’re more capable than you think – but you have to be willing to step outside your comfort zone to see it.”

Outside of work, Ola enjoys walking with her Border Collie, Luna, and cross stitching. She recommends Legacy by James Kerr to anyone in supply chain, for its powerful insights into leadership and culture. If she wasn’t working in mentoring and development, she would likely be pursuing a career as a Visual Merchandiser.

Jack Callaghan

Jack Moore

Operations Team Leader

In December 2023, Jack joined SRSCC as an Operations Coordinator and quickly established himself as a key member of the team.

Promoted to Team Leader in October 2024, Jack utilises his expertise in auditing processes and innovative problem-solving to identify and enhance growth opportunities.

Jack possesses a strong ability to analyse and refine systems and procedures, consistently uncovering chances for streamlining and automation that drive operational efficiency. He excels at communicating complex ideas with clarity and precision.

Detail-oriented yet big-picture focused, Jack applies his exceptional organisational skills to ensure the team adopts the most effective strategies for achieving both individual and collective goals.

His methodical approach and strategic mindset make Jack an invaluable asset to SRSCC, significantly contributing to the team’s success and the realisation of organisational objectives.