The current edge of competition in business requires that companies improve on their business operations and attain an economic advantage. The current manufacturing companies compete globally with other companies and are compelled to strategies on cutting costs while optimization on operation (Guīã & Stanciu, 2008).  To make critical decisions while cutting on costs and increasing services, Material Requirement Planning (MRP) is essential. Currently, the application of technology as a form of innovation is a challenge to most companies because of the fear of failure. Enterprise Resource Planning (ERP) software is hence beneficial since it enables a business to manage and integrate their most essential processes.

ERP systems in an organization provide coherent technological and operational benefits. Numerous business enterprises have successfully used the ERP system for industrial purposes. As an organizational benefit, the ERP system increases the ability of a company to issues better information and supports the establishment of learning the visions and strategies of the organization (Guīã & Stanciu, 2008). The ERP system has been used by companies to acquire real monitoring and control over various operations of a business encompassing resources, finances and production processes. Managers in an organization apply the system to improve their understanding of the customers and for a long term decision making for improved business process management. Within the IT and infrastructure sector, the ERP increases the ability of the company to obtain efficient and maintainable integrated IT systems with enhanced cost reduction abilities.

A good MRP system can be used by a company to ensure that there are enough materials which are available for the production process. An effective set up of the MRP system allows manufacturers to plan their operations such that minimal inventory is used in the production. Low inventory used during production implies capital preservation and efficient use of capital. The MRP also assist a manufacturing company in evaluating how much of the finished products will be available for shipment to the customers (Crandall & Crandall, 2015). An understanding of the quantity of finished goods that will be available in the future assists the company to plan for its sales. The company can plan diligently for its purchasing and delivery schedules, and this helps the manufacturer to save on storage and shipping costs.

 
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