Transform Your Supply Chain with Expert NetSuite MRP Optimization

By: Michael Murdock, CPA, CMA

Squire isn’t just a leading provider of accounting services for yourself and your business, it can also streamline your business operations.  

One of Squire’s standout services is NetSuite MRP Optimization, designed to streamline your procurement and production processes for maximum efficiency. According to Squire Advisory supervisor Michael Murdock, any business that offers a physical product for sale can benefit from having an optimized MRP—or Materials Requirement Planning—system. 

“Consumer products, manufacturing, those are the big ones,” Michael says. “MRP is about procuring materials needed for sale or production and planning for the appropriate lead times. A lot of businesses could benefit from an optimized MRP system and may not be taking advantage of it.” 

Understanding MRP: The Backbone of Effective Supply Chain Management 

NetSuite’s Materials Requirements Planning (MRP) engine is a sophisticated software system that integrates inventory management with production planning. It plays a critical role in maximizing efficiencies in your supply chain and operations by: 

• Forecasting Material Needs: MRP estimates the required raw materials based on current inventory levels and projected demand. 

• Scheduling Production: MRP helps schedule production runs to ensure that finished goods are available when needed. 

• Managing Inventory Levels: MRP ensures optimal inventory levels, reducing both excess stock and stockouts. 

For businesses that produce physical products, MRP systems are not just a luxury—they are essential for maintaining a competitive edge.  

What are the benefits of an MRP? 

Having a well-organized MRP is essential to capturing potential missed sales, Michael explains.  “An optimized MRP system is crucial for aligning supply with demand. If you have customers that want to buy your product and you didn’t plan well enough in advance, you’re going to lose revenue.” 

Many businesses that don’t have an MRP system in place often rely on an analyst to do the heavy lifting of procurement and operations by planning everything out in a spreadsheet. According to Michael, this comes with the dangerous possibility of user error and can be an expensive use of manpower. 

“There’s a lot of risk in doing that and having the possibility of someone entering a digit incorrectly or breaking the spreadsheet by missing a line,” Michael says. “It’s a huge headache to manage instead of having a system that does the calculations for you and tells you what you need.”

The Challenges of Implementing MRP Systems 

While the benefits of NetSuite’s MRP engine are substantial, implementing it can be complex. Many organizations face challenges such as: 

• Learning Curve: Navigating the intricate features of MRP software can be daunting for new users. 

• Settings Management: With many planning options available (which can interact with each other in unexpected ways), getting an MRP set up properly can prove difficult for even a seasoned planner.  

Squire specializes in easing these challenges. As Michael notes, “Many businesses struggle with the complexity of MRP systems and the potential for human error. Our team is adept at setting up and optimizing these systems, ensuring they function smoothly from day one.” 

Streamlining the Process with Squire 

Though he works at an award-winning accounting firm, Michael spends most of his day speaking with procurement and operations managers. His job is simple enough: get their MRP humming and optimized for success. 

“We have a value add that makes things very simple,” Michael says. “We’ve built some automations around the process that streamline it and make it easy for a planner to know what to buy or what to produce without having to dig through reports.” 

Squire is staffed by experts across key industries including personal care, manufacturing, renewable, energy, apparel, footwear, furniture, and many more. Rather than giving you a cookie-cutter product, they take time to understand your business and build you a personalized MRP system based on your business model. 

It just makes sense to partner with Squire, not only for accounting services but to streamline your production and procurement processes as well. Reach out to a Squire CPA today.