MRP refers to the systematic planning, control and monitoring of material stocks and orders to optimally cover demand. It is essential for purchasing in order to ensure security of supply with minimum storage costs and to avoid production bottlenecks.
Example: An automotive supplier plans its material requirements for plastic housings with a replenishment lead time of 14 days, a safety stock of 1,000 pieces and an average weekly requirement of 2,500 pieces, whereby the reorder point is 3,500 pieces and automatically triggers a reorder of 7,500 pieces.
Materials planning in purchasing refers to the planning, management and control of material procurement in order to ensure that the company is supplied in line with demand. It ensures that the right materials are available in the right quantity at the right time and in the right place. This involves creating demand forecasts, triggering orders and coordinating delivery dates in order to ensure smooth production processes and avoid supply bottlenecks or excess stock.
Scheduling is a central element in purchasing and contributes significantly to the efficiency and competitiveness of a company. Effective replenishment enables purchasing processes to be optimized, costs to be reduced and delivery capacity to be increased. It makes it possible to react quickly to market changes and keep the supply chain stable.
Materials planning in purchasing is at the heart of effective procurement management. Building on the theoretical basis of demand-driven materials management, its practical implementation is crucial for a company's competitiveness. In a world of increasingly complex supply chains and growing market dynamics, traditional materials planning often no longer meets the requirements. A shift towards modern, automated approaches is therefore essential in order to increase efficiency and optimize costs.
Traditional approach: In manual scheduling, requirements were often determined by schedulers using spreadsheets or simple ERP systems. This was based on historical consumption data and personal experience. The order quantities and times were determined manually, which required a great deal of manpower. The limitations of this approach are its susceptibility to human error, lack of real-time data and limited ability to react to short-term market changes. In addition, safety stock often led to increased storage costs.
Artificial Intelligence (AI): Modern replenishment systems use artificial intelligence to make demand forecasts more precise and efficient. By integrating real-time data from various sources such as sales, production and inventory, AI enables dynamic adjustment of order quantities and timing. Key innovations include self-learning algorithms that recognize consumption patterns and plan ahead for future demand. The practical benefits are significant: reducing stock levels by up to 30%, faster response times to market changes and minimizing supply bottlenecks.
A leading automotive manufacturer implemented an AI-supported scheduling system in its purchasing purchasing controlling. By analyzing real-time consumption data and taking into account external factors such as supplier reliability and market trends, the company was able to reduce its inventory levels by 25%. At the same time, the rate of material shortages fell by 40%. The more efficient scheduling led to cost savings of over 15 million euros annually and significantly increased flexibility within the supply chain.
Material planning in purchasing is an indispensable strategic process for a company's success. Precise planning and control of material procurement not only optimizes costs and secures production processes, but also strengthens competitiveness. Increasing digitalization and AI-supported solutions are opening up new opportunities for even more efficient and forward-looking planning. The balance between security of supply, cost efficiency and flexibility in inventory management remains crucial.