Sector guide
Chemicals, pharmaceuticals, food, cosmetics and other process manufacturers make products from formulas rather than assemblies. That changes what ERP has to do. This guide explains the differences and what regulated manufacturers, including pharmaceutical companies, need to check.
By Christopher Fagan, Managing Partner, PEF Consulting Partners
Discrete manufacturers build products from parts using a bill of materials, and units can be counted and taken apart. Process manufacturers blend, mix or react ingredients using a formula, often with variable yields and co products. ERP built for discrete manufacturing struggles with potency, units of measure that change during production, and batches that must be traced end to end.
Pharmaceutical manufacturers work under Good Manufacturing Practice and MHRA inspection. Systems that hold GMP records need to be validated, with controlled electronic records and signatures, audit trails and data integrity controls in line with ALCOA+ principles, EU GMP Annex 11 and the MHRA’s data integrity guidance. Plan validation into the implementation from the start, using a risk based approach such as GAMP 5, rather than treating it as a final step.
| Option | Notes |
|---|---|
| SAP S/4HANA | Strong process manufacturing and batch management for larger and regulated manufacturers |
| Oracle Fusion Cloud with process manufacturing | For larger groups, especially finance led |
| Dynamics 365 Supply Chain Management | Process manufacturing features for mid to large manufacturers |
| Sage X3 | Process manufacturing for mid sized companies |
| Business Central or SAP Business One with process extensions | For smaller manufacturers |
| Specialist process ERP | Industry products for chemicals, pharmaceuticals or cosmetics |
Related reading: food and beverage ERP, ERP systems for manufacturing, what is UAT, ERP implementation consulting.
ERP designed for manufacturers that produce goods from formulas or recipes, such as chemicals, pharmaceuticals, food and cosmetics, with batch, potency and quality features built in.
Discrete manufacturing assembles countable parts using a bill of materials. Process manufacturing blends or transforms ingredients using a formula, often with variable yields and co products.
Yes, where the system holds or controls GMP records. Validation should follow a risk based approach such as GAMP 5 and be planned from the start of the implementation.
Larger manufacturers commonly use SAP S/4HANA or Oracle; mid sized ones often use Dynamics 365, Sage X3 or specialist life sciences ERP. Validation support and partner experience of GMP matter as much as features.
We help process and regulated manufacturers select and implement ERP with quality, validation and traceability treated as core requirements.