What is Process Manufacturing?

Updated: December 29, 2010

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 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 in 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 is a key component for process manufacturers to truly understand profitability by finished good.

Needing to see the physical properties, inventory costs, labor costs, containerization, quality of the raw materials and finished goods is critical to 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 the 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 or 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.

Featured Research
  • Your Guide to Social Customer Service

    Did you know that 67% of online consumers have used social media for customer service purposes?Unfortunately, many businesses ignore social mentions because they don’t know how to handle them appropriately. This is a problem because managing and responding to these mentions can make or break your brand. more

  • A Guide to Selecting a Customer Portal for your CRM

    This whitepaper provides a guideline for selecting the right customer portal solution for your CRM by following a three-stage process. By comparing in-house and third party SaaS products, we examine present business and technical portal requirements, which are then mapped against the upfront and hidden costs for development and future scalability needs. more

  • Top Intelligent Tools That Every Sales Rep Should Have in 2017

    Explore how Artificial Intelligence (AI) makes it possible for salespeople to leverage the structured data in their day-to-day activities and enhance the communication with customers and prospects. more

  • The Social Intranet: A guide to getting better business results

    This whitepaper describes why the shift from a traditional to a social intranet is imperative to staying competitive, and analyzes the costs and benefits associated with implementing one. You will also find useful KPIs to measure performance and further leverage your intranet's success, raising employee engagement and boosting your competitive advantage. more

  • The New 2016 SMB CRM Comparison Guide

    Selecting a CRM system is not easy. That's why our CRM expert has compiled this new SMB CRM comparison guide to provide you with the information you need on the top 40 CRM software solutions available on the market. more