As mentioned previously, Sage licenses Sage 500 Inventory Replenishment software module when companies purchase the Material Requirements Planning MRP software module and vice versa. But there are differences between the two modules that users need to be aware of as each was intended for different audiences.
The Inventory Replenishment software was developed by Sage but the features were defined by inventory replenishment expert Jon Schreibfeder of Effective Inventory Management. EIM helps companies understand how to manage inventory and how to plan inventory using new and old strategies to improve every aspect of their business.
Companies looking for best practices in inventory management software implementation should contact Jon for a personalized consultation as he is a world renowned expert in inventory advancing the leading theories of Gordon Graham. Sage (then Best Software) published a book called Effective Inventory Management with MAS 500. The book is no longer in print but may be available from Jon Schreibfeder.
Inventory Replenishment software was designed before Haitek Solutions began development of the Sage MRP software module so the module was strictly designed for wholesale distributors. It has a lot of great features including target order quantities, line point, seasonal calculations, and more.
However, there are several major reasons why wholesale distributors using Sage 500 might use the MRP software module instead of Inventory Replenishment software.
- First, Inventory Replenishment software is not time-phased. A sales order entered for six months in the future will generate a target order today even if the item only has a 1 week lead time. MRP software, on the other hand, recognizes lead times and plans for the supplying order appropriately which will help reduce carrying costs.
- Second, Sage MRP software has a lot more functionality around the entire supply chain planning process including more options on transfer order plans between distribution centers or warehouse location.
- Third, many suppliers require orders to be placed for a minimum, maximum, or order multiple quantity. Inventory Replenishment software does not support this. The e2b Enhanced MRP software module allows the user to define these settings. For example, if a vendor requires a minimum order of 100 and you fall 1 unit below safety stock planning – Enhanced MRP software will generate a planned order for 100 units since this is the vendor’s minimum order quantity. The same is true for a maximum quantity to be ordered per Purchase Order.
The order multiple is useful if you are stocking in one unit of measure (such as each) but you must order in another unit of measure such as a case, truckload, carton, etc. In this case, Enhanced MRP software will generate actual and forecast Purchase Order planning in the defined multiple (e.g., 12 each per case, 1,000 pounds per truckload, or 100 each per carton).
Below is a comprehensive comparison of Inventory Replenishment software and MRP software capabilities. (Note that this table does not include features added by the anytime 500 Enhanced MRP software module and Anytime Supply Chain software which will be discussed in future blogs.)
e2b teknologies is the original developer of Sage 500 MRP software. The Company continues to develop new features for Sage 500 MRP software and now offers Anytime Supply Chain software, the next-generation cloud MRP software and cloud DRP software is available for Sage 500, Sage 300, Sage 100, Intacct Financials, Intuit QuickBooks, and other accounting and ERP business applications.