While many process manufacturers still have not taken a fully integrated approach to implementing ERP systems, and many are still running significantly outdated systems, competitive and regulatory pressures will soon force many to adopt standard processes and modern, integrated ERP systems, according to a recent report from Aberdeen Group.
Fifty percent of process manufacturers — in industries such as chemicals, pharmaceuticals, food and beverage, and consumer products — have not yet taken a completely integrated approach to ERP deployment. Many, for example, still have not integrated extended front-office processes, such as order management, procurement, product planning and execution, cash collection, and financial reconciliation, into their ERP environments. At the same time, 38% of process manufacturers are running significantly outdated versions of their ERP systems, the study found.
But, the Aberdeen report says, several factors will change that. As process manufacturers face increasing competition, for example, they will need to improve customer service and response times. At the same time, increased regulations, including the Bioterrorism Act and 21 CFR Part 11 in the United States, mean that process manufacturers will need to upgrade and extend their ERP systems to support capabilities such as backward and forward lot traceability, attribute-based rules and routing, formula and recipe-based management, sample management, and yield and inventory optimization.
The report lists 15 ERP vendors that are focusing specifically on the requirements of process manufacturers. Several, the report notes, have begun to build partnerships with other software companies in order to deliver more advanced process manufacturing capabilities. SAP process partners, for example, include IBM Global Business Services, Invensys, OSIsoft, Pavilion Technologies, SmartOps, and Tata Consultancy Services.