The Ultimate Guide to Multi MRP Handling: Boosting Warehouse Efficiency

The B2B commerce landscape is periodically subjected to changing market requirements and shifts in demand which consequently impact price points. It can get tricky to manage multiple prices for single SKUs against customer segments, order volume, pricing strategy, market conditions and regulatory changes. An example of this is when the same product of a clothing brand that is shipped in two different lots or batches from a clothing brand reflects different prices. This is where Multi-MRP(Maximum Retail Price) handling comes in.

Implementing multiple MRPs  gives businesses the flexibility to dynamically alter and align price points to various internal and external factors, allowing them to compete against other players. 

In simple words, Multi-MRP is an adaptability strategy which benefits everyone- the distributor, merchant,their warehouse and accounts team and the end-customer.

In this post, we’ll look into the importance of Multi MRP handling in B2B and how businesses can stay competitive and compliant. Read on!

Multi-MRP at the GRN-level

Multi-MRP (MMRP) is a strategy where the manufacturer or brand sets multiple maximum retail prices for the same product arriving in different lots across sales channels or regions to account for the variations in operating costs, taxes, subsidies in different locations. In some industries like pharmaceuticals, one drug from a shipment may be split across two or three different batches destined to be sold in different regions, with transportation and retail space costs added to the price.

Let us explain Multi-MRP with an example of a beauty product that was sold at Rs 120/- in 2023.The breakdown in its pricing included production cost, material procurement cost and markup as decided by the brand. A year later, the price was adjusted to Rs 135 due to a change in procurement fees and low supply.

In this scenario,how would a brand ensure that they’re conforming to all laws? The answer lies in using the Multi-MRP handling provision within the EasyEcom inventory management system. Lets revisit what happens in the moments leading up to using Multi-MRP handling;

1. The retailer or distributor indicates the quantities for a certain MRP that they require at a specific location by a certain date. The Turnaround Time (TAT) for each product varies by stock planning, sales and timelines for individual manufacturers in order to raise the Purchase Order.
2. The Purchase Order (PO) carries the MRP which is printed and reflected on the product or label. 
3. The batch is unloaded at the warehouse docks and inspected using QR or barcode scanning. In the former, QR scans unearth the complete details of the item including the MRP,  cost price, manufacturing and expiry dates while the latter contains singular information on a particular  aspect- such as the Maximum Retail Price.
4. The batch is taken in for Quality- Compliance checks that are done either completely or for a certain percentage of the entire batch or lot. The QC-Incharge checks paperwork to match the quantities, damages, shortages, expiry (if any or all three are applicable) and MRP indicated on the PO to invoice before assigning warehouse teams to the batch. 
5. The team in turn checks if the MRP is written on the product and proceeds to count the items. If there is an information mismatch, the Head Office for that specific product category is notified and clarity is obtained before proceeding with raising the Goods Received note. 
6. With approval, the team has the provision to enter and record the new MRP where change is indicated. 

Following the steps described above not only ensures that no batch is overlooked but also minimizes confusion and conflict internally between the price previously entered and the revised rate.

The B2B module within the smart system like EasyEcom helps QC and warehouse teams to capture the MRP  at the time of raising a Goods Received Note (GRN). 

In this manner, price fluctuations (where applicable),that override earlier prices for the same batch are picked up at the time of inwarding to ensure transparency and accuracy throughout the supply chain, from the time inventory is received to being picked up for processing, fulfillment and ultimately-delivery.

Multi-MRP applies to retailers or distributors in scenarios where

1. Special promotions or seasonal discounts apply to products within certain batches.
2. Products are distributed across different markets in different locations, each with regulatory price requirements. 

Previously, inwarding was inconvenient and rigid. There was no provision to update or alter only a single piece of information. As a result,outdated or old prices continued to reflect and get forwarded to invoicing and dispatch. 

Multi-MRP emerges as a simpler alternative that offers this flexibility while reducing redundant effort and time. Through the EasyEcom system, warehouse teams can scan batches and capture price updates at the time of inwarding, which is as per actuals over the data recorded in the Product Master. 

What’s more, details of old and existing batches already are stored and auto-populated within the system, necessitating only the price element to be changed for quick item-level identification. With MRP-level insights on dynamic pricing, sales teams can test pricing approaches for different batches and feed this information back to brands .

 In turn, brands can use these insights to make relevant cross-sell recommendations that drive loyalty and shorten the deal closure time. In 4 words-  better inventory liquidation strategies!

The Benefits of a Multi-MRP module

Multi-MRP module poses several advantages in the B2B space, which are;

Regulatory compliance

Multi-MRP module facilitates changes without compromising existing data for previous and current batches, helping brands to comply with regulatory compliance. 

Preventing error propagation

Having a complete and updated record of actual prices captured during and after GRN prevents outdated prices from propagating forward on invoices, dispatch notes and labels.

Inventory management clarity

Warehouse teams have the most recent inwarding data and know where to go in the inventory to pick the correct item for an order, driving picking speed and picker efficiency. 

Smart Inwarding

With several batches, warehouse operators will need to identify and distinguish an old batch from new arrivals and ascertain the price change during GRN. If there’s a change, the system will automatically pick it up and record the new value, while no change sets the de facto value to what was already recorded in the Product Master. This makes it easy for teams to understand the quantity of items at a batch-level that were changed,as well as untouched. 

Three-way matching

Multi-MRP ensures a three-way match between GRN, invoice and dispatch data, which conforms to all laws. 

Batch or Lot Tracking

Multi MRP helps to track individual items by their batch, lot or serial number, allowing them to have several MRPs. This boosts pricing and sortation accuracy within inventory management. 

Accurate Sales Performance Evaluation 

Recording different MRPS in the same GRN helps companies to track product performance in different markets by sales, which helps to adjust price points in the future.   

System Integration

The Multi-MRP option syncs and unifies sales and inventory data, facilitating pricing, stock levels and sales movement tracking. 

Streamlined returns 

During item returns, the system gives flexibility to users to enter the batch, helping them to identify the inwarded batch and by association, the Maximum Retail Price. 

Several factors prompt revisions to prices; from changing business requirements to inflation and rebranding, which impact the inventory, either partly or whole. In fact, it is a common practice in industries such as pharmaceuticals, FMCG and healthcare, it is a common practice to revise price points for individual merchandise every 90-180 days, depending on the demand for the product, efficacy and sales growth.  With every revision, what sellers need is a system that handles,records and reflects these changes for every inventory over time linked to a specific batch.

How Multi-MRPs work 

Earlier, sellers had to rely on their timeliness and memory to update attributes and edit price points manually. Even then, the changes did not reflect digitally to help merchants recognize where and where the change took place. In enabling the Multi-MRP feature, the seller can use QR or barcode scans to capture the MRP. All the warehouse team has to do is run the scanner against the batch and record data at the inwarding stage, applying the modification to the GRN automatically. 

This way, even if the Product Master contains unrevised prices, the latest change is available on delivery, invoice and dispatch notes even after the Goods Received Note is raised, facilitating change sans confusion or disputes.The flexibility to make the change once for it to reflect everywhere consistently is what ensures smooth inventory movements, making multi MRP a feature to leverage when inwarding goods. 

Inwarding process efficiency sets the precedent for the rest of the activities until products reach an end-customer, so some benefits to having the best of both worlds- updation flexibility and data accuracy are;  

 Inventory Management

Maintaining accurate records of inwarded material helps sellers to manage lots by supplier, warranty, warehouse and storage location.

Supply Chain Traceability

As materials flow in through multiple transit points such as from the manufacturing facility to warehouse or vice versa, efficient inwarding captures these movements to minimize missing batches and account for defective pieces within a particular batch.

Procurement Efficiency

With the same information available to purchase and vendor teams, the ground coordination between them is greatly enhanced, helping to forecast needs against demand and acquire exact quantities. Proper inwarding functions highlight quantity irregularities and deficiencies, which can be corrected before it impacts reputation.

Cost Accounting 

Rising and changing expenses to underlying charges such as materials, insurance and handling are captured during the GRN process, facilitating accounting compliance with accurate invoicing.

Inwarding insights

Streamlined inwarding offers insights to reduce material costs- including procurement lead time, price fluctuations etc.

Boosted operational excellence

With clear receiving inventory procedures in place, your staff spend less time and effort verifying and storing items, speeding up the process and accelerating ship velocity. 

Want to boost GRN hygiene and benefit from applying dynamic pricing strategies? Get a callback to see Multi-MRP inwarding in action and score a perfect 10 on your inventory management score! 

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