An enterprise resource planning (ERP) or supply chain management (SCM) solution has to be selected. The project holds significant value. One way not to deliver on that value is selecting a vendor whose product does not fit the needs of the business. This is common sense, but for process companies, it can be particularly challenging. Process companies, including food, chemical, pharmaceutical, forest products, and others, often have unique requirements not addressed by most technology providers.

Not all areas of technology reflect the uniqueness of a process business. While financial systems have few requirements not in common with all companies, operational systems often have many issues. The systems dealing with manufacturing, inventory, procurement, and customer order management systems are among the systems that often prove to be the hardest to acquire due to the unique issues of the process enterprise.

Although the list of unique requirements can be defined, what are the root causes of the differences … what makes process process? These root causes flow from a few characteristics of the business.

The Basic Nature of Material

Process materials are often powder, liquid, or gas on the raw material end—and either the same (industrial companies) or cases of product (consumer goods companies) on the finished product end. The system must allow you to measure and store these types of materials.

Measurement of process materials is often done differently at various locations across a single plant or supply chain. The units of measure (UOM) used vary even when measuring a single material. Therefore, the product must allow any UOM to be used anytime with the system automatically making all changes to the standard UOM. For example, tons have to be converted into pounds, gallons into kilograms, cubic feet into pounds, or (for a tank or silo) feet into gallons.

Process materials change with time. They may get worse, they may get better or they may become a different material. Discrete oriented systems assume that materials do not change. A process solution must recognize and manage the change of the material over time. For example, if a material deteriorates over time, the available-to-promise (ATP) calculation should not consider the material available after the shelf life date. Conversely, if the material improves with time (aging), ATP should not start considering the material until after the aging date.