What is Process Manufacturing?

What is Process Manufacturing?

What is meant by process manufacturing?

In process manufacturing, there is not only a recipe or formula for the preparation of the product, but also for the packaging of the product-specific to customer orders. This portion of the formula or recipe contains steps for filling the product to meet a finished goods order, such as a 16 oz bottle with a cap and label. The label could be branded to the customers' private branding.

Although in process manufacturing, the products are usually created in bulk, the manufacturer may not deliver the product to the customer in the same way. This bulk is usually kept in a tank or tote as an intermediate and then a fill ticket can be generated from the demand of a sales order.

The fill ticket is like a recipe or formula or even a bill of material to tell the picker how to package and ship the finished good. If anything were to change in this process, there are ways to keep track of the recipes and formulas for future (long-term) efficiency and effectiveness. With process manufacturing, an important component to consider and keep in mind is that the formulas used must be organized, controlled, and input into the computer.

A prominent question for the manufacturer to ask would be is the inventory being controlled as it should be? Do I know how much raw material or finished goods I lost in processing or filling? Inventory control and costing are a key components for process manufacturers to truly understand the profitability of finished goods.

What is ERP?

Enterprise Resource Planning (ERP) systems provide an integrated suite of tools to access business data, create reports, and analyze important details about your entire business in one centralized system. ERP systems can help improve and streamline your business across departments such as:

  • Accounting & Finance
  • Human Resources
  • Customer Relationship Management
  • Manufacturing
  • Inventory
  • Sales
  • Supply Chain Management
  • Risk Management
  • Compliance & Security

ERP solutions have been around for decades in the manufacturing industry and companies in other industries are beginning to realize the drastic benefits of centralizing and organizing all the important data related to their business and growth strategies across all business departments. 

ERP solutions are rapidly gaining acceptance across all types of companies and industries, and as a result, ERP technology is transforming to fit all the changing and growing needs of unique businesses. 

What is a manufacturing module in ERP?

Needing to see the physical properties, inventory costs, labor costs, containerization, and quality of the raw materials and finished goods is critical to the product development process all the way through to the final production management. Process manufacturers should also maintain the aim to meet the requirements for customer satisfaction. All these things would be factors of an ERP (Enterprise Resource Planning) system which would consolidate all business operations into a uniform and enterprise-wide system environment.

In other words, with ERP, a manufacturer can successfully in one system control and manage customer relationship management, manufacturing, supply chain management, financials, project management, human resources, data services, and access control.

A cost-effective way to implement the ERP software would be to hire outside consultants (solution suppliers) who are professionally and adequately trained to implement these systems which are at times considered to be too complex for someone to handle in-house such as the developer on site.

Let's say there may be a question on the implementation of the ERP system or software in general that someone without the proper credentials within the company couldn't answer; having a solution provider to rely on would prevent any potential unanswered questions or concerns to cause future problems.

Another option would be to implement your ERP in phases. A good consulting firm with experience in your industry can advise you on the best options and priorities for your company.

Which ERP is best for process manufacturing?

  • NetSuite

Oracle's NetSuite is the world's #1 cloud ERP solution. This ERP provides over 40,000 organizations worldwide with a modern, scalable, and unified platform to streamline all crucial back-office processes, from financial management and planning to warehouse and fulfillment, and beyond. With built-in business intelligence, reporting, and real-time visibility across your entire organization, Oracle NetSuite empowers businesses of all sizes and industries to unleash innovation and growth, reduce overall IT costs, and eliminate operational inefficiencies-- allowing you to focus on the key, revenue-generating decisions in your day to day, rather than worry about your back-end systems.

  • Sage Intacct

Sage Intacct ERP serves as a cloud-based accounting software application. It's delivered to consumers as a (SaaS) model. The company is a pioneer in SaaS business software. The company has acquired about 5000 worldwide customer organization. It also represents above 30,000 users. It has a growing partnership with ecosystem resellers, accounting firms, and integrators. It has become the most preferred accounting software system for the American Institute for CPAs (AICPA). The ERP software is designed to fit small and medium-sized businesses. It satisfies the companies that seek deep accounting system functionality. Intacct also offers specific accounting software for various markets.       

  • Syspro

SYSPRO Enterprise Resource Planning software is a comprehensive business management solution offering thousands of new features that provide distributors and manufacturers with a fully integrated platform for increased operational effectiveness. Some of its key features include financials, manufacturing, payroll, and customer relationship management (CRM) modules. It also comes with an allowance for seamless integration with third-party products such as inventory management. As a modular cloud ERP, its components can be upgraded as the company continues to grow while maintaining low overall implementation costs. Users also benefit from the global network outreach that the developers have established over the years.      

If your company is in the process manufacturing industry, it should be clear by now that you should be using a great ERP system to manage all of your resources. Let us be of further assistance and direct you to our ERP buyer’s guide. You can also compare top ERP vendors to narrow down the right choice for your business.