Product

Distribution Requirements Planning (DRP)

Never run out of stock again. Distribution Requirements Planning (DRP) intelligently plans your inventory for optimal customer satisfaction.

Optimize inventory levels to meet supply needs.

DRP keeps the right products in the right place at the right time. It uses forecasts and real customer demand to optimize inventory plans for kit assemblies, kit component requirements, purchase orders, and warehouse transfers. This helps you:

  • Boost customer satisfaction: By ensuring you have what customers need when they need it.
  • Cut costs: Reduce carrying costs by avoiding excess inventory and expensive rush orders.
  • Make smarter decisions: With clear insights into which supply orders needs to be moved, expedited, or canceled.

Key Benefits of DRP ERP for Your Company

  • Time-Phased Inventory Planning

    DRP software helps businesses optimize inventory levels by time-phasing suggested supply orders coupled with optional demand forecasts to ensure that the right amount of stock is in the right place at the right time. This reduces the risk of stockouts and overstocking, leading to lower carrying costs and improved cash flow.

  • Improved Collaboration

    DRP software can foster better collaboration between different departments within a business, such as sales, warehouse management, and logistics. This is because everyone is working from the same data and can see how their decisions impact other parts of the supply chain.

  • Reduced Costs

    DRP software helps businesses reduce ordering costs, transportation costs, and inventory holding costs. This is achieved through better supply chain planning and coordination.

  • Faster Decision Making

    DRP software provides businesses with real-time data and insights that can be used to make faster and more informed decisions about inventory levels, kit assemblies and kit requirements, and transportation.

Important Features of Distribution Requirements Planning Software

Varied Strategies

Acumatica includes robust inventory replenishment to define min and max order quantities, reorder points, seasonality, lead times, safety stock, and forecast models to calculate replenishment. Inventory replenishment may be used for specific inventory items, such as low-cost, high-volume items, while DRP may be used for other items that require manual demand forecasts, kitting, or time-phased inventory planning.

Forecasting

Forecasts can be calculated or entered manually. These forecasts can be dependent and consumed by sales orders, or they can be independent. Input forecasts as one-time, weekly, monthly, or yearly.

DRP Planning Detail

Review and execute the complete time-phased inventory plan through DRP inventory planning screens that show all activity, orders, requirements, balances, and recommendations for each inventory item.

Multi-Warehouse

Manage procurement and transfers across warehouse locations. DRP suggests planned orders that drive requirements throughout your organization to supply warehouses down to your vendors.

DRP Days Supply

Define planning buckets to consolidate demand into single purchase orders. Planned period sizes are defined by item class, stock item, or item and warehouse combination.

Grace Period

Set a grace period for the number of days after receipt where a supply transaction is considered to meet the requested date for item demand.

Transfers

Balance supply and demand for planned inbound and outbound transfer orders across warehouse locations.

Blanket Sales Orders

As forecasted demand, blanket sales order lines for future dates are included in DRP planning. Child sales orders released from blanket orders are processed as normal sales order demand.

Order Quantities

DRP uses safety stock and reorder point levels to determine quantities for planned orders. Further, users can set minimum and maximum order quantities for suggested orders or preferred supplier order quantities. Lot sizes are used to smooth demand quantities by defined multiples. For example, a lot size of 5 and demand for 37 units would result in a planned order for 40 (rounded up from 37 in a multiple of 5).

Order Lead Times

DRP respects vendor lead times defined in inventory for purchased items. Users can set additional lead time when the product may need to be quarantined and inspected before it is moved to an on-hand warehouse location. Lead times are also defined for transfers between warehouse locations.

DRP History and Audit

Benchmark previous DRP generations to evaluate past DRP performance to understand if generation times varied due to larger date ranges, setup issues, or other factors.

Kits and Components

Generate suggested kit assemblies based on forecasts or actual sales order demand. DRP will suggest planned purchase orders and warehouse transfer orders for kit components required for stock or non-stock kit assemblies.

See what Acumatica customers are saying

"Having Acumatica in place provides us with a great degree of comfort in that we can increase the volume without having to increase the fees that we have to pay for the solution so that we can continue to grow."
Chris Sakamoto, Chief Financial Officer
Bluefin Collectibles
"Acumatica with Orbis DSD has given us a competitive edge when it comes to sales capturing and logistics. We see this as a business enabler."
Clyde Attard , Sales Divisional Manager
P. Cutajar & Co. Ltd.
"Almost every other ERP software charges monthly per user, which inevitably has executives trying to limit how many people really need simultaneous access. Acumatica’s novel way of charging based on transactions is well-suited for future growth."
Eric Mizrahi, Director of Operations & IT
Global Beauty Care

Ready to put Acumatica to work for you?