Process manufacturing describes the combination and processing of ingredients and raw materials to produce finished products such as food, drinks, plastics, and others. These manufacturers use software designed to support process manufacturing. Automated workflows in process manufacturing software allow clients to be met sooner.
The process manufacturers combine ingredients and materials using a recipe or formula. The products of process manufacturers are often produced in large quantities, such as chemicals, plastics, petroleum, pharmaceuticals, and food. To maintain maximum efficiency, it is essential to use tracking and scheduling tools. ERP systems must provide the necessary tools to process manufacturers with such specific requirements. ERP systems are often developed to cater to a specific niche, such as the food and beverage industry.
For example, a beer brewer will blend grains, malts, and hops with yeast and sugar by the recipe and quantity needed for immediate needs. The ingredients are then allowed to ferment according to the exact recipe and time under the right conditions. They can then be packaged and sold. The article discusses the top features, benefits, and best ERP manufacturing process flow solutions.
What is Process Manufacturing Software (PMS)?
A process manufacturing system is one that uses formulas or sequential steps to produce products. The software also has features to reduce waste and allow for the input of expiration dates. Process manufacturing systems are often designed with legal compliance in mind because different government agencies heavily regulate industries such as pharmaceuticals and food. If your business is national, it may also be subject to global regulations.
Software for process manufacturing centralizes daily processes in a database master that allows you to sync vital information related to your shop floor, finance, Customer Relationship Management (CRM), distribution, warehouse, and Human Capital Management (HCM). Integration of these functions is a great way to boost revenue and productivity.
You'll probably come across manufacturing and ERP software when looking for software that can support process manufacturing. What is their scope, and how do they work? ERP is an acronym for Enterprise Resource Planning. It's a software solution that centralizes business information and streamlines front and back office operations.
They can do everything, from managing human resources to planning material needs. Manufacturing solutions, on the other hand, are more geared toward manufacturers' requirements. Vendors are distinguished by their support for discrete or process manufacturing. Some support both. We'll examine the difference between discrete manufacturing and process products in the following section so that you can determine which specific solutions will best suit your business. Manufacturing solutions excel at managing distribution, storage, inventory, and supply chains.
Discrete vs. Process Manufacturing
Process manufacturing differs from discrete manufacturing, where specific products are made in separate locations. Instead, you create batches of goods that you divide into bottles or barrels. Chemically, you transform raw materials and ingredients into a finished product. These goods can't be disassembled or recycled like discrete manufactured products.
It isn't easy to manage process manufacturing because of its unique features. The fact that the production process cannot be reversed makes it necessary for process manufacturers to plan their product and operation recipes with more excellent care. The delivery of products can be challenging to process manufacturers, as the finished product has a higher potential for impacting both consumer and employee health.
Plant managers require ERP manufacturing solutions to manage complex processes. The solution addresses safety regulations, consumer needs, and everyday tasks such as careful recipe planning, accounting, and customer management.
The Benefits of Primary Care
Evaluating the capabilities most useful to manufacturing businesses is essential, even though the functionality will vary depending on the vendor. The type of deployment, the industry you work in, and your business size will determine which solution is best for your manufacturing needs.
1. Better Quality Management
When selecting ERP software for process manufacturing, the ability to manage quality is crucial. It is essential to produce an item efficiently. Still, it is only helpful if the product adheres to industry and government standards. Your ERP software or manufacturing software must support the unique needs of process manufacturers.
It's also helpful that a program supports the laws and regulations of different geographical regions, as many manufacturers have international operations or sell to customers worldwide. It can also help avoid issues like product recalls when a safety or industry standard needs to be addressed.
Idealerweise, your software will include a quality management feature that generally supports product quality. Due to its complicated nature, process manufacturing can be prone to contamination or pollution hazards. Therefore, quality management is integral to any solution, as it will protect your brand, customers, and revenue.
2. Supply Chain Optimization
Supply chain management involves many moving parts, as you may already know. Supply chain optimization can be a daunting task without an ERP solution. Vendor relationship management is one of its key features. It helps you ensure your products are made with high-quality material at an affordable price. Vendor management involves tracking cost, performance, and transaction history.
Their products' delicate nature or potential hazards also creates unique transport needs for process manufacturers. A pharmaceutical company might have to use a tanker to carry chemicals, while food producers might require a vehicle that is refrigerated to keep food fresh during distribution. The national laws governing chemical transport can further complicate this workflow. The manufacturing process is a great way to ensure a cost-effective and efficient distribution of materials.
3. The Recipes Manager Manages Recipes and Formulas
There is little room for error when crafting products using ERP process manufacturing. This method is based on strict adherence to formulas and recipes. Managing formulas and recipes are essential for ensuring quality and saving money.
Fixing defective products can be a highly complex process. A proper formula or recipe management accessory can reduce defects and include substitutions for products to be improved or materials that are unavailable during manufacturing. It is essential to ensure the safety of employees and clients when using substitutes to create an item.
Depending on the type of manufacturing, you will need to complete certain products or processes in specific conditions. These may include humidity levels, temperatures, or exposure to light. The concentration of a substance during production can also affect the formula and chemical reactions during development. The software considers all of these factors for process manufacturing so you can ensure your product is safe and high-quality.
4. Tracks Costs and Profitability
The success of any business depends on the ability to generate income. Cost tracking and profit measurement tools allow you to use complex data about the costs of ingredients and formulas in recipes and formulas for measuring revenue and financial factors. ERP Process Manufacturing software can track the cost of ingredients based on their chemical properties, such as potency or quantity used. The program must also measure and calculate the amount of wasted raw materials and ingredients. This allows companies to calculate unit costs and compare them with the sales price to establish profit margins.
Additionally, costs are associated with the unique storage conditions required for sensitive materials, such as temperature-controlled storage spaces and vehicles. To accurately estimate the cost of an item, it's essential to consider these factors. Costs can be difficult to calculate when items have different units of measurement. You could ship the same product to a customer in one container but another for a second. Use your manufacturing process software to keep track of expiration dates, lot numbers, and other information to prevent waste and reduce money.
5. The Adaptability Of Different Markets
To reduce the likelihood of compliance issues, process equipment manufacturers must stay on top of government regulations. In past year, the EPA issued a hexane emission restriction on American producers of crude oil, vegetables, and other similar products. Keeping track of new and changing regulations for facilities operating in different regions can be challenging.
Labels and packaging are also significant market factors. You may have noticed that food labels can differ from country to country if you've traveled abroad. Government regulations determine label requirements. Size preferences can also be altered when reviewing packaging.
Due to the customer's demands and expectations, a large-size soda at a restaurant in America may differ from the order of the same item at the same place in China. Companies can use process manufacturing software to stay abreast of regional labeling, packaging, and regulatory requirements differences. ERP manufacturing processes can facilitate product changes as the market and regulatory environment change.
6. Reducing Waste
It is sad, but waste in process manufacturing is inevitable. Creating a recipe or formula for a finished product that produces zero waste is challenging. Most process manufacturers produce a certain amount of waste. Changing product recipes can also lead to waste, especially when there is an increase in product demand or a shortage of ingredients and raw materials.
Software for manufacturing processes can assist you in tracking waste produced and comparing it with your estimated waste. This calculation reveals issues in the manufacturing process.
A lack of planning is another reason for waste. If you do not track your raw material expiration dates, they may expire even before you have used them. Expirations can also cause costly downtime, which takes time away from employees. Therefore, production planning is a crucial feature of ERP systems for manufacturing processes.
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7. Increases Production Agility
Process manufacturers often produce variations and multiple versions of the same product. Transitioning from one cycle to another can be difficult because each item uses a unique recipe. Agile production software can be used to plan, adjust and optimize your planning to increase productivity and maximize the use of equipment.
You've probably had to change the production cycle for one product to produce another. This can be because the quality of a product has been compromised, and an adjustment is needed. Flexible applications ensure these adjustments happen efficiently and on time while providing quality goods.
8. Enhance Product Development and go-to-market Strategies
Process manufacturing ERP software gathers product data to optimize the product development process. The system may collect various data, such as returns, sales volumes, and customer satisfaction. This information will help you identify successful products. These platforms control the time and cost variations when creating final merchandise. You can produce products of high quality at lower prices by monitoring the costs and time variations.
Other ways of leveraging historical data include identifying patterns in the behavior of customers that could affect your business's revenues. It's vital to adapt quickly to market changes, discontinue non-profitable products, and release new items to meet customer demands. Process manufacturers may even release or sell products with low profits in the short term for their long-term potential to generate revenue. The production process is not without risk, but the software used to manage it allows for more informed and measured risks. This increases the likelihood of success.
9. Enhances Environmentally-friendly Practices
Recent consumer tastes have shifted significantly, with a desire to buy products from environmentally aware companies and source materials that do not harm the environment. While it is challenging to achieve net-zero emissions, companies can still take steps to have a less negative impact on the planet. Conflict minerals are a factor you should consider, even after considering basic safety and quality laws. Conflict minerals are sold to promote violence and war within the countries where they're sold.
As technology has advanced and consumers have become more informed, they are increasingly likely to boycott companies that employ conflict minerals or engage in practices they consider unfriendly to the environment. ERP for process manufacturing can help you reduce the harmful resources your business uses, allowing your brand to be seen as socially conscious and promoting your reputation with consumers.
10. Keeps Inventory Ahead
The system will determine the needed materials based on inventory, demand history, and demand forecast. It is possible to ensure you always have ingredients for producing items on hand and of the best quality.
It is possible to track the raw materials and any expiration dates mandated for your product. You can increase your profitability by ensuring that you order only a little material. Maintaining a list of expired products can help you reduce the amount of spoilage.
11. Reduction of Production Losses, Variances, and Theft
Are you sure how many products you can make with your current supplies? You can use process manufacturing software to calculate how much product each batch produced historically during production and how much it should be able to produce at its highest functionality. Transparency helps identify production goals, factors that cause losses, and sudden stock disappearances that need further investigation.
12. All Compliance Regulations
The lot management system and batch tracking can make the entire production cycle traceable. You can generate schedules and reports instantly, allowing your company to be inspected without worrying about non-compliance.
13. Increased Order Capacity
Process manufacturing solutions can help determine the number of materials and labor required to satisfy the demands of an ever-changing number of customers. Automated systems allow you to determine precisely how large your next batch should be in order to meet your existing orders. The software can calculate when your production will reach its maximum capacity, and you'll be able to take on new orders.
14. Protecting Secrets during Reporting
It can be daunting to enter your recipe or ingredient list into software, particularly if you have patented your product. Both on-premises and cloud-based vendors of process manufacturing can encrypt data to improve security. You can have your ingredients encoded in documents like your bill of material.
15. Expedites Merchandise Production
Due to increasing industry competition, customers have more expectations of vendors. Software for process manufacturing can reduce the time it takes to fulfill orders and increase customer loyalty. These results can be achieved by tracking time spent at each step of production. You can better plan your delivery time when you know the processes that take the longest.
16. Prepare for Unexpected Supply Shortages and Demand Changes
You may only sometimes have the necessary materials to complete an order in time. The program lets you create backup plans for developing substitutes. The backup plans will include the materials and ingredients you can use if you do not have the goods you need.
Customizing orders to meet the needs of people with allergies or other essential preferences can take your business to the next level. This software allows you to compare costs per batch for each custom order and to analyze product ingredients more thoroughly. The system also makes it possible to create customized products at a profit.
17. Increased Competitiveness
By leveraging software for process manufacturing, you can improve your business's position in the market. You can increase your revenue and attract new clients by leveraging benefits like optimizing production and compliance and creating a more eco-conscious brand.
You might speak with other companies that have used the vendor you are interested in to determine how they benefited their business. Automating your processes and reducing spoilage can help you maximize revenue while simplifying day-to-day operations.
The Key Features
Software for process manufacturing is essential to achieving the benefits listed above. Ask vendors if they offer the features you want. These are some tools you may want to include in your software:
Production Management
You can manage your shop floor with the production management module. It is usually integrated with PLM and computer-aided design (CAD) to deliver data in real-time about a product's lifecycle. The integration can also help communicate and make unified changes in the product and the supply chain. The production management system can provide visibility into the labor force and their time. Using this method, you can ensure consistency and efficiency. This module also offers other essential functions such as cost estimation, creating competitive quotes, planning capacity, and scheduling.
Manufacturing Accounting
Some of the most popular features are financial tools. They often include essential accounting features such as accounts payable and receivable or a balance. Manufacturing accounting software may offer more tailored features, such as forecasting and budgeting, using actual data from the company. Billing, invoicing, and sales tax calculations include project-based accounting, analytical accounting, billing, invoices, etc.
Supply Chain Management
The supply chain management tools can be used to determine the suppliers that are most suitable for your needs. This tool is also helpful for automatic quotation processing, forecasting demand, and product reviews. Some manufacturers of manufacturing software may also support requests for proposals (RFPs). A web-based platform allows customers to configure products, manage raw materials bids, and access information on inventory, such as purchase orders and requests for quotes (RFQ).
Read More: Why is it important to upgrade ERP System for your Enterprise
Transportation and Logistics
Internet of Things connectivity (IoT), a relatively new technology, benefits transportation and logistics. IoT could be used to connect manufacturing software with a transportation tool. This allows you to monitor the movements of goods using GPS. The transportation modules will help you plan the most efficient routes, track mileage, and predict inventory levels.
Asset Management
Many businesses find it essential to manage fixed assets. Tools for enterprise asset management can monitor factors like energy costs and fluctuations in value. The system may keep service records and other documents related to the acquisition or ownership of fixed assets. This module also contains essential tax information about your fixed assets.
Project Management
These tools can help you manage resources like time and labor. These tools may use Agile methodologies to optimize and streamline operations. Some of these tools allow you to track a project's progress through the lifecycle. You can also see the project owner's history and visualize project timelines.
Best Process Manufacturing ERP Software
Process manufacturing ERP comprises a variety of software vendors that focus exclusively on the manufacturing process. ERP software vendors with diverse portfolios offer solutions suitable for discrete manufacturing and process production.
It would be best if you considered factors like whether a vendor provides:
- Cloud-based or on-site software deployments.
- The industry that they serve.
- The functionalities provided.
- The business size.
Please look at our list of the best software for process manufacturing, compiled by analysts.
ProcessPro
ProcessPro ERP is designed for manufacturers of batch processes to solve problems related to lot control, recipe compliance, and management. The system is designed to handle the complete manufacturing and accounting processes from beginning to end.
Top Benefits:
Provides Centralization: Get a central hub to manage system sales, development, installation, and support. Client support is also provided via live chat and by dedicated staff.
Advanced Analytics Offers: Mobile devices and PCs can access interactive data, reports, images, and analysis. Implement sorting, graphing, and drilling to find vital data. Pre-set metrics, KPIs, and files are available for analysis.
Utilizes Blogging: Use the blog module of this software to learn more about a specific topic.
Use Industry Insights: Check out the many industry insights for vital information and advice.
Fishbowl Manufacturing
Fishbowl Manufacturing provides inventory management solutions for small to medium-sized manufacturers, distributors of wholesale products, and eCommerce businesses. The essential accessories are order management, part tracking, reporting, and report generation.
Top Benefits:
Try Live Chat and Free Trials: Live chat is available for a free 14-day trial to talk with Fishbowl's representatives.
Demos on the Web: Use a web demonstration through the desktop of a representative via GoToMeeting to explain unique features and products. The demos usually last between 10 minutes and an hour.
Employee Integration: This system can be integrated with other systems such as eCommerce, accounting, and shipping. This app is compatible with Android, MacOS, and Windows devices.
Authorizes Asset Tracking: Automate the reordering of materials, supervise several warehouses and track deliveries, evaluate expiration dates, and assess expiration. Reordering parts is easier when you know the quantity of each part and its location. Track products by lot, serial number, revision, and tag.
SYSPRO
Syspro ERP is designed to help manufacturers and distributors plan, control and execute productions. This software includes inventory management, lot tracking, sales analysis, and self-service reports. It also offers sales tax reporting, a portal for customers and sales tax reporting.
Top Benefits:
Leverages Pricing Strategies: Prices vary depending on the features selected, the number of users, whether they are deployed in the cloud or locally, and the quantity and quality of data. The model is pay-as-you-go.
Expert House Opinions: IDC Technology Evaluation Centers Aberdeen Group Mint, Mint, and other analysts have given SYSPRO high ratings.
The Developer Community: You can access many software experts who will help you create tailored systems that integrate SYSPRO and an SOA Framework.
A Partner Network: More than 1,600 partners in 60+ countries are available to provide training, support, and sales channels.
Showcases of Architecture: Microsoft SQL is used to protect information since this software runs on Microsoft.NET and HTML5 standards. SYSPRO is a single code base that develops around code blocks, objects, and components. Each code object has its own business rules.
DELMIAworks
Need an ERP system for manufacturing processes that covers all aspects of your business in one database? DELMIAworks may be the perfect software for you. This solution offers customers on-site training, virtual and internet classes, and more. It also includes material management, order and sales management, and customer relationship management.
Top Benefits:
You can now watch webinars on demand: View on-demand webinars covering topics like quality, compliance, and more.
A comprehensive resource center is available: Access a library of resources that includes system data, real-world examples, and manufacturing experts.
SAP Business One
SAP Business One, a manufacturing ERP for small to medium businesses, is designed specifically for them. The software is designed to optimize business processes, deliver real-time data, and supervise performance. Its top features are financial management, customer and sales management, and Business Intelligence (BI).
Top Benefits:
There are many different deployment options: You can choose between cloud-based or on-premises deployment. This solution is also available on mobile devices.
It provides an Interactive Community: Connect with industry professionals and peers to exchange information and learn from their experiences.
Exhibits Extension: Get self-service customizations, extensions, and development of service layers. Create extra tables, forms, and fields without IT assistance.
SAP Learning Hub: Learn SAP Business One by reviewing learning material through the SAP Business One Academy, including presentations, case studies, quizzes, and more.
Allocates Learning Content Language Support: You can manage training materials in 9 languages, including English, Spanish, French, German, Chinese, and Portuguese.
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Last Thoughts
Many software applications are available to support these goals in different industries. Although a variety of choices is good, choosing the right system can be challenging. It is essential to choose an ERP that fits your specific business needs. There is an ERP system for every type of process manufacturer. There will at least be one ERP that can help you if you devote the time and effort necessary to create your requirements.
ERP software is designed to assist companies throughout the supply chain. Process manufacturing software, however, can assist manufacturers in gaining greater visibility, reducing waste, increasing efficiency, and much more. Check out our comparison guide for more information on manufacturing systems.
