Process ERP software manages production, front office, and back office operations for manufacturers that transform raw materials and ingredients into indistinguishable products such as food, drinks, or chemicals. Process ERP systems are used to identify demand, manage raw materials, define formulas and recipes for production, track production cycles, and monitor the quality of the finished products.
This type of software is commonly implemented across a company, but is most critical for the production, purchasing, and warehousing departments. Production managers use process ERP solutions to define how ingredients are combined to manufacture finished products and how to allocate equipment and human resources to the shop floor. Process ERP software helps departments such as sales, purchasing, or inventory by managing sales and purchasing orders and the inventory or ingredients and finished goods.
Process ERP software usually provides modules for most departments of a manufacturing company, but it can also be built on accounting systems which are not delivered by the vendor. This type of software needs to integrate with other enterprise solutions such as CRM all-in-one software, supply chain suites, PLM software, and HR management suites.
To qualify for inclusion in the Process ERP category, a product must:
- Manage formulas and recipes for manufacturing of finished goods
- Provide multiple units of measure and automated conversion between them
- Track expiration dates for ingredients, raw materials, and finished products
- Manage inventory in bulk and/or by batch, production lot, and expiration date
- Allow users to create alternatives to standard recipes and formulas
- Allocate raw materials and ingredients to production based on recipes
- Monitor the quality of the production batches and adjust when needed
- Include traceability features to track the origin of ingredients and raw materials
- Deliver standard and custom packaging options for finished products
