Process manufacturing companies. Varying substantially with their ERP needs, process manufacturing companies produce goods using a formula or recipe. Such manufacturing typically involves continuous or batch production processes and is common in industries such as food and beverage, pharmaceuticals, chemicals, and petrochemicals. Unlike discrete manufacturing, which assembles products from distinct parts, process manufacturing produces items that cannot be disassembled into their original components. These companies often deal with complex inventory and require sophisticated supply chain planning.
Process manufacturing processes. The fundamental difference between process manufacturing companies and other companies would be the complexity of formulas and recipes that drive their processes. The processes might also vary with their supply chain planning as the large majority of process manufacturers are likely to be make-to-stock, with heavy inventory and supply chain operations. The commoditized industries such as food, pharma, and chemicals are likely to have substantial Direct Store Delivery (DSD) operations with a heavy focus on eCommerce. Depending upon the product mix, new product development (NPD) would be critical with the flavors of discrete manufacturing in the form of managing their own packaging lines.
Process manufacturing ERP needs. Process manufacturing companies require ERP systems that can handle formulation and recipe throughout the R&D and production phases. Depending upon the business model whether the process manufacturer is more contract-based or an OEM, the need for quality could vary per customer or customer group. These systems must also support integration with ancillary systems such as process-specific PLMs, MES and WFM, and value chain planning and forecasting. Finally, some industries such as pharma and chemicals might require a unique data structure to accommodate distinct requirements such as capturing multiple serial and lot numbers together, making the generalized ERP systems irrelevant for this industry vertical.
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Criteria
- Definition of a process manufacturing company. These companies in the process manufacturing ecosystem include manufacturers formulating recipe processes to produce products in industries such as pharma, nutraceuticals, cannabis, food and beverage, etc. The list considers companies of all sizes in this ecosystem.
- Overall market share/# of customers. The higher market share among process manufacturing companies drives higher rankings on this list.
- Ownership/funding. The superior financial position of the ERP vendor leads to higher rankings on this list.
- Quality of development. How modern is the tech stack? How aggressively is the ERP vendor pushing cloud-native functionality for this product? Is the roadmap officially announced? Or uncertain?
- Community/Ecosystem. How vibrant is the community? Social media groups? In-person user groups? Forums?
- Depth of native functionality. Last-mile functionality for specific industries natively built into the product?
- Quality of publicly available product documentation. How well-documented is the product? Is the documentation available publicly? How updated is the demo content available on YouTube?
- Product share and documented commitment. Is the product share reported separately in financial statements if the ERP vendor is public?
- Ability to natively support diversified business models. How diverse is the product in supporting multiple business models in the same product?
- Acquisition strategy aligned with the product: Any recent acquisitions to fill a specific hole for process manufacturing industries? Any official announcements to integrate recently acquired capabilities?
- User Reviews: How specific are the reviews about this product’s capabilities? How recent and frequent are the reviews?
- Must be an ERP product: Edge products such as HCM, CRM, eCommerce, MES, or accounting solutions that are not fully integrated to support enterprise-wide capabilities are not qualified for this list.
10. Acumatica
Acumatica is primarily a discrete product and does not have native process manufacturing capabilities. However, the add-ons available in their ecosystem are very strong, and they have robust alliances with these companies. This makes Acumatica a potential threat in the process manufacturing sector over time. It is ideal for smaller process manufacturing companies operating US, Canada, UK, and Australia.
Acumatica could be a significant contender for industries that require both process manufacturing and discrete manufacturing. The process manufacturing capabilities, combined with field service, construction, distribution, and e-commerce, will all be part of the same database, providing end-to-end traceability across these functions. If these capabilities are important to you, then Acumatica could be an excellent choice. Therefore, Acumatica secures the #10 spot on our list of top process manufacturing ERP systems.
Strengths
- Technology. Acumatica is very cloud-native, and its process manufacturing add-ons are designed with similar development standards and documentation guidelines.
- Core ERP layers. The core ERP layers are very strong, especially for smaller companies outgrowing QuickBooks or the smaller ERP systems.
- Ideal for seasonal businesses. It’s also a better fit for seasonal businesses, especially in process manufacturing industries. Seasonal businesses, such as those in the food industry, often benefit from this model. Pricing and licensing may be slightly more favorable for these businesses.
Weaknesses
- Quality and process manufacturing module through third parties. You should be aware of the risks, including integration risks. Implementation might also be more expensive due to the various moving parts involved.
- Not suitable for companies requiring global financial consolidation. Acumatica has limited global capabilities for process companies seeking synergies among global entities.
- Not suitable for large companies. It is not designed for large process manufacturing companies.
9. ECI Deacom
ECI Deacom is a smaller product than Acumatica but offers slightly superior capabilities as part of its suite. It integrates all the components required for process manufacturing. It is ideal for smaller process manufacturing companies seeking suite capabilities. With Acumatica, reliance on third-party add-ons and dealing with more vendors is necessary, whereas, with ECI Deacom, everything is provided by ECI itself as part of the suite. So, if you are a small company and are limited in your implementation needs, ECI Deacom could be a great fit.
It targets small process manufacturing companies, particularly those heavily involved in eCommerce and DTC. Its processes are tailored to industries like food and beverage or chemical-centric industries. Despite its strengths, the core ERP layers and data model are not scalable for companies seeking mature ERP capabilities. So, it suits smaller companies transitioning from QuickBooks with constrained implementation budgets. Therefore, with this ECI Deacom secures the #9 spot on our list of top process manufacturing ERP systems.
Strengths
- Specialized process manufacturing capabilities such as catchweight, and potency. Advanced process manufacturing features critical for process manufacturers are provided out of the box.
- Friendlier for commerce-centric companies. Features such as route accounting and other capabilities are included in the suite, especially useful in process manufacturing spaces maintaining their own fleets and assets like PODs.
- Easier implementation. The core ERP layers are not as detailed, making the implementation easier for smaller companies.
Weaknesses
- Limited ERP layers. The ERP layers are going to be limited. So it’s not as moldable as some of the other ERP products.
- Not as diverse. It may not support many different business models and transactions, leading to quick outgrowth. For complex business models with diverse processes and transactions, ECI Deacom might not be the best fit.
- Ecosystem. The ecosystem is limited, as compared to any similar product on this list. You primarily rely on ECI Deacom’s professional services for consulting and knowledge.
8. SYSPRO
SYSPRO excels in some process manufacturing spaces, such as chemical, food and beverage, and medical devices. It is ideal for smaller process manufacturing companies requiring distribution and discrete manufacturing capabilities. SYSPRO also includes process manufacturing capabilities like formulation and recipe support. It has a very strong alignment with eCommerce players prevalent in the process manufacturing space, increasing the available integration options. Designed for smaller companies, SYSPRO is not suited for global consolidation or complex operations. However, if operating in a few countries with installations in the US or UK, SYSPRO might be a great fit. Thus, considering all these factors SYSPRO secures the #8 spot on our list of top process manufacturing ERP systems.
Strengths
- Complex inventory layers. The inventory layers are far more complex. So these are going to be different attributes. And those attributes are going to be part of the process.
- Formulation and recipe support. With SYSPRO, the formulation and recipe support is going to be part of the product.
- Discrete and process manufacturing in one solution. The product natively supports both manufacturing modes, making it friendlier for process manufacturing companies managing their own packaging lines.
Weaknesses
- Complex process manufacturing capabilities such as catch weight, potency, and reverse BOMs. All of these capabilities might not be supported as part of SYSPRO.
- Limited suite capabilities. While great for smaller companies, large process manufacturing companies would require specialized tools such as PLM, WMS, and TMS from third parties.
- Limited global consolidation capabilities. SYSPRO has limited global capabilities for process companies seeking synergies among global entities.
7. SAP S/4 HANA
SAP S/4HANA is designed for larger companies aiming to consolidate global business models across various entities, especially those with a significant global footprint or publicly traded status. It excels in complex organizational structures and is ideal for companies actively engaged in mergers and acquisitions due to their ever-changing business models. SAP S/4HANA offers flexibility in processes and transactions, catering to diverse business needs. Thus, positioning itself at the #7 spot on our list of top process manufacturing ERP systems.
Strengths
- ERP layers for complex organizations. It is designed for very complex organizations, essentially those companies that will be very active with their M&A cycles.
- Diversity of the solution supporting discrete and process manufacturing. The solution is very large supporting many different business models with equal depth for process and discrete manufacturing.
- Global compliance and localization. Regions like South America and Europe are complex due to their small countries with unique processes. Mainstream ERP systems often lack support in such regions, leaving solutions like SAP S/4HANA, Microsoft, or Oracle as the only viable options. Alternatively, there may be niche solutions specifically designed for these geographies.
Weaknesses
- Last mile capabilities through third-party vendors. The last-mile capabilities will likely involve third-party vendors. Therefore the integration of suite capabilities as well as core capabilities will be highly dependent on vendors, increasing vendor integration risks.
- Expensive implementation. The implementation costs are going to be expensive because of dealing with different vendors.
- Requires mature internal IT team. In tailoring, customizing, and configuring these capabilities, the same capabilities that are already included as part of the suite, SAP S/4 HANA also requires a very mature internal IT team.
6. QAD
QAD is the right fit for supply chain-centric companies, particularly in industries like life sciences and food and beverage. This is where rigorous supply chain planning processes are common, despite these product types being generally less expensive. But it’s not a fit for companies with diverse business models or very small companies. QAD has seen substantial advancements in its portfolio, especially with its technology, which was a massive barrier for QAD in the past. Thus, contributing to the placement of this product at #6 spot on our list of top process manufacturing ERP systems.
Strengths
- Supply chain suite + ERP as part of the suite. The entire suite from QAD is included in the product itself, reducing reliance on third-party vendors. This results in cheaper implementation costs due to pre-baked, pre-configured, and pre-integrated components.
- Process companies with discrete manufacturing lines or components. It is primarily a discrete product, although it also includes some process capabilities. However, complex process manufacturing capabilities may not be fully supported.
- Global capabilities. From a global consolidation perspective, it is generally a larger product compared to others like Acumatica or ECI Deacom. It is designed for global supply chain collaboration across 5-20 countries.
Weaknesses
- New technology might not be stable or rolled out to all modules. Although they have announced an upgrade to cloud-native technology, it has not yet been fully rolled out and may not be stable for the next few years.
- Ecosystem. Having QAD alone for the ecosystem might be challenging due to its limited nature.
- Not as diverse. This is not a good fit for companies with hybrid business models as the data and process model is highly tailored for specific process manufacturing verticals.
5. Microsoft Dynamics 365 F&O
It is a product similar to SAP S/4 HANA, designed for more generalized cases requiring diversity and industry-specific capabilities through third-party vendor add-ons. In these scenarios, MS Dynamics 365 F&O is a better overall choice compared to SAP S/4HANA or Oracle, which have proven themselves in Fortune 500 workloads. They offer extensive capabilities relevant to mid-market companies, along with advanced cloud operational capabilities, where Microsoft is currently ahead. It has an ecosystem that makes it suitable for private equity and holding companies aiming to streamline their portfolio companies on one solution. SMBs, however, might find its complex data model overwhelming. Thus, acquiring its placement for the #5 spot on our list of top process manufacturing ERP systems.
Strengths
- Comprehensive localization across the globe. This would be beneficial for global process manufacturing companies seeking synergies among their entities.
- Ecosystem. One of the most active ecosystems, offering numerous solutions to support various industries, even if those capabilities aren’t part of the core ERP layers or products.
- Recipe and formulation supported natively. The product data model has native support for both process and discrete manufacturing modes.
Weaknesses
- Last mile capabilities through third-party vendors. The last mile or industry-specific capabilities you acquire will be through third-party vendors. This approach increases vendor risk when utilizing these capabilities.
- Expensive implementation. The implementation may be slightly more expensive because you’re dealing with many different vendors and many different add-ons.
- Requires mature internal IT team. In tailoring, customizing, and configuring these capabilities, the same capabilities that are already included as part of the suite, MS Dynamics 365 F&O also requires a very mature internal IT team.
4. Oracle Cloud ERP
Oracle Cloud ERP is a product similar to SAP S/4HANA and MS Dynamics 365 F&O. It is designed for large global publicly traded companies, offering extensive financial capabilities for consolidation across entities and business models. However, its industry-specific capabilities are not as preconfigured or tailored as those found in other products on the list. It also excels with high transaction volumes. It is not the optimal choice for SMB process manufacturers lacking internal IT capabilities seeking full-suite capabilities. Thus, contributing to the placement of this product at #4 spot in our list of top process manufacturing ERP systems.
Strengths
- ERP layers for complex organizations. This ERP system is designed for large global publicly traded companies. These companies typically require international financial consolidation and aim to integrate various business models and geographies into one solution. This is necessary to ensure end-to-end traceability.
- Diversity of the solution supporting most discreet industries. The ERP layers are highly adaptable and designed to support various business models, resulting in a very diverse product. In contrast, other products may not offer the same level of diversity.
- Well adopted among process manufacturing companies through JDE install base with pharma and F&B companies. They also have a larger presence in process manufacturing, particularly in pharma and food and beverage, due to the widespread adoption of the legacy JD Edwards product in these sectors. They are converting these customers and offer extensive capabilities tailored to these industries.
Weaknesses
- Last mile capabilities through third-party vendors. The last mile or industry-specific capabilities you acquire will be through third-party vendors. This approach increases vendor risk when utilizing these capabilities.
- Expensive implementation. The implementation may be slightly more expensive because you’re dealing with many different vendors and many different add-ons.
- Requires mature internal IT team. In tailoring, customizing, and configuring these capabilities, the same capabilities that are already included as part of the suite, Oracle Cloud ERP also requires a very mature internal IT team.
3. Aptean Process Manufacturing ERP
This solution falls under the prescriptive category, where you receive a complete suite tailored to specific industries. Aptean process manufacturing ERP’s approach is similar to Infor’s, with specific ERP products bundled into the suite. Although marketed broadly as having 15 process manufacturing solutions, these are segmented into editions like Ross or ProcessPro, each designed for highly specific micro-verticals needing tailored innovation capabilities. Unlike Acumatica, where all business models reside in one database for easier upgrades and better traceability across transactions, Aptean’s products operate on separate databases. This distinction presents risks but offers deep functionality and capabilities for specific micro-verticals. Thus, positioning itself at #3 spot on our list of top process manufacturing ERP systems.
Strengths
- Full suite pre-integrated. Because of full pre-integrated suite being present, the implementation costs are going to be cheaper.
- Complex process manufacturing capabilities. Aptean provides complex capabilities like reverse BOMs and potency ingredients tailored to each process manufacturing micro-vertical, along with unique PMS functionalities.
- Several versions tailored for specific micro-verticals such as Ross and ProcessPro. It is designed for highly specific micro-verticals needing tailored innovation capabilities.
Weaknesses
- Expensive with partial implementation. Buying the complete suite from Aptean may be cheaper. However, if you opt for a rip-and-replace approach or wish to use your favorite tools with Aptean’s architecture, costs could increase. You may encounter fewer pre-baked integrations and fewer consultants knowledgeable about these integrations. Aptean may not prioritize supporting external products or suites, which could pose challenges during partial implementations. Thus, choosing between Aptean’s complete architecture or similar products may depend on your specific needs and desired diversity.
- Not as diverse. This is not a good fit for companies with hybrid business models as the data and process model is highly tailored for specific process manufacturing verticals.
- Limited ecosystem and consulting base. It has a weaker ecosystem and consulting base compared to other ERP solutions.
2. Sage X3
Sage X3 is positioned as a mid-to-large product in the process manufacturing sector. It excels particularly when robust accounting processes are needed, suitable for auditor requirements in publicly traded companies. In the pharmaceutical industry, which is highly regulated, Sage X3 shines due to its comprehensive process capabilities. The ecosystem is well-developed with ample consultants, making it widely adopted in process manufacturing compared to other products on this list. Thus, considering all these factors Sage X3 has acquired the #2 spot on our list of top process manufacturing ERP systems.
Strengths
- Depth in accounting. It excels particularly when robust accounting processes are needed, suitable for auditor requirements in publicly traded companies.
- Specialized process manufacturing capabilities such as catchweight. Complex process manufacturing capabilities such as catchweight, UoMs, and BOMs are all included in the product.
- Well adopted among process manufacturing companies. The ecosystem is well-developed with ample ERP consultants, making it widely adopted among process manufacturing companies.
Weaknesses
- Suite capabilities through third-parties. For suite capabilities such as PLM and configurator, you may need third-party add-ons.
- Not the core focus for Sage. Overall, Sage X3 is not the core focus in their portfolio; Sage Intacct is their primary focus. Their target market primarily consists of SMBs rather than larger companies, which are more penetrated by other ERP providers. Their primary distribution channel is accounting firms, making them more established in the small to mid-sized market.
- Accounting boilerplate. The advanced accounting capabilities might not be as relevant for smaller companies primarily caring for operational capabilities.
1. Infor CloudSuite M3
Infor CloudSuite M3 is adopted among process manufacturing companies, especially those with very complex inventory and deep involvement in supply chain planning. Its key strength is that it is a complete pre-integrated suite containing several components, including specialized PLM and a tailored supply chain suite. Infor M3 is a great fit for focused process manufacturing companies with limited IT budgets but might not be the best fit for companies growing through M&A or with diverse business models. Thus, Infor CloudSuite M3 secures the #1 spot on our list of top process manufacturing ERP systems.
Strengths
- Comprehensive process manufacturing capabilities. Process manufacturing capabilities are one of the most robust to support the operations of global process manufacturers with many different business models including retail and rental operations.
- Supports complex inventory and products. The attribute inventory is supported throughout processes starting from NPD to dispatch and value chain management.
- Pre-integrated supply chain suite. The pre-integrated supply chain suite makes the implementation cheaper and vendor risk lower.
Weaknesses
- Expensive. Compared to smaller suites such as ECI Deacom and SYSPRO, Infor M3 would be more expensive because of the advanced capabilities for larger and global companies.
- Not suitable for SMBs below $250M in revenue. The advanced layers provided as part of the product might be too detailed for smaller companies, posing adoption challenges.
- Ecosystem. The consulting base and marketplaces are virtually non-existent for both Infor M3.
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Conclusion
In conclusion, selecting the right ERP system is crucial for process manufacturing companies due to the complexity and specificity of their operations. The top 10 ERP systems identified in this blog each offer unique strengths and capabilities that cater to various needs within the process manufacturing industry. From robust accounting processes in Sage X3 to the comprehensive pre-integrated suite of Infor CloudSuite M3, each system provides distinct advantages for managing intricate manufacturing processes, ensuring regulatory compliance, and optimizing supply chain planning. Companies must carefully evaluate their specific requirements, including the need for specialized functionalities, global capabilities, and integration ease, to make an informed decision.
The diversity in ERP systems also reflects the varying priorities and operational scales of process manufacturing companies. Smaller companies might benefit from systems like ECI Deacom or Acumatica, which offer tailored solutions for niche markets and simpler implementations. In contrast, larger companies with extensive global operations may find Oracle Cloud ERP or SAP S/4HANA more suitable due to their advanced capabilities and scalability. Ultimately, the right ERP system, chosen with the guidance of an independent ERP consultant, will not only streamline operations and enhance efficiency but also support the company’s growth.
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