Frequent Production Stops Because Parts Were Missing
A make‑to‑order furniture factory constantly faced last‑minute stock‑outs of raw materials like wood panels and hinges. The production planner manually checked inventory and ordered parts, but the process was slow and error‑prone. Machine downtime cost the company $10,000 per month.
How ERPNext Automated Material Planning
ERPNext’s Material Requirements Planning (MRP) module takes sales orders and forecasts, calculates net requirements against current stock and open purchase orders, then suggests purchase orders and production orders automatically. The system also reserves materials for specific jobs.
- Original problem: 12 production stoppages per quarter due to material shortages.
- ERPNext solution: Automatic MRP run daily, with shortage alerts sent to the procurement team.
- Improved result: Production stoppages dropped to zero; inventory holding costs reduced by 20% because orders were placed just‑in‑time.
The factory now runs two extra production shifts per week without overtime waste, directly adding $150,000 to annual profit.