Process manufacturing demands precision, consistency, and complete operational oversight - qualities that are critical in industries such as food and beverage, chemicals, and pharmaceuticals.
Given the challenges of conducting this type of manufacturing at scale, the right technology is key. Microsoft Dynamics 365 Business Central offers a powerful, adaptable platform to meet demands, enabling manufacturers to manage formulas, batches, quality control, and compliance within one integrated system.
In this guide, we explore what process manufacturing involves, the challenges it presents, and how using Business Central for process manufacturing can optimise and streamline production.
Overview: What Is Process Manufacturing?
As mentioned, process manufacturing is a critical production method for industries such as food and beverage, chemicals, and pharmaceuticals.
Unlike discrete manufacturing, which assembles individual components, process manufacturing uses formulas or recipes to transform raw ingredients into finished goods. This often involves managing liquids, powders, or gases in bulk quantities, with recipes scaled up or down depending on demand, ingredient availability, or batch size.
The resulting products may also be packaged in multiple formats to meet different customer or market requirements.
At its core, process manufacturing is about delivering consistent, high-quality results. Each batch must meet strict standards, whether producing thousands of litres of soft drink or a small quantity of specialised chemicals. Formulas define the ratios of inputs, while packaging recipes determine how the finished product is prepared for distribution.
Because the original ingredients cannot be recovered once combined, accuracy in planning, measurement, and quality control is essential for success.
The Challenges Of Process Manufacturing
As can be imagined with such varied outputs, process manufacturers face unique operational challenges.
Maintaining quality control is essential, as even small deviations in a formula can lead to wasted materials or non-compliance with regulations. Material wastage can result from inaccurate production planning or mismatches between ingredient supply and demand. Full supply chain transparency is also critical to track raw materials from supplier to final product, ensuring compliance and customer trust.
On top of these pressures, manufacturers are increasingly tasked with meeting sustainability goals - reducing waste, improving efficiency, and operating in an environmentally responsible manner without compromising profitability. All of these factors add up to a constant balancing act - one that requires technology to get the optimum result.
Features Of Business Central For Process Manufacturing
As a robust ERP system, Business Central offers a secure and scalable platform to meet the specific needs of process manufacturing.
Out of the box, Business Central delivers capabilities for production planning, scheduling, inventory management, material requirements planning (MRP), and version-controlled bills of materials - all critical within process manufacturing.
With the right configuration, Business Central becomes a complete solution that can meet the following requirements:
- Formula and recipe management – Create and maintain production formulas alongside separate packaging recipes for flexible output formats.
- Batch and lot tracking – Maintain full traceability from raw materials through to packaged goods.
- Quality management – Record test results, monitor compliance, and manage non-conformance cases within the system.
- Integration with supply chain and finance – Align production with procurement, inventory, and financial data for greater operational control.
- Industry-specific extensions – Access specialist add-ons for sectors such as food, beverage, or chemicals, introducing expiry date tracking, yield management, and enhanced reporting.
Hypothetical Example: A Craft Brewery
To demonstrate Business Central’s potential, consider a craft brewery producing a 100-gallon batch of beer for both cans and kegs. Below we outline the processes involved and how Business Central for process manufacturing fulfils requirements:
- Formula & Recipe Setup – The brewery defines its beer formula in Business Central, detailing precise ingredient ratios. Separate packaging recipes for cans and kegs allow flexible allocation of output based on customer orders.
- Production Planning & Execution – Using MRP and capacity planning, the brewery schedules ingredient deliveries and brewing runs. Production orders record raw material consumption and actual yields, ensuring accurate data.
- Quality Control & Traceability – Quality tests are logged, and each batch receives a unique code, enabling full traceability from ingredient source to packaged product.
- Packaging & Dispatch – Separate packaging orders ensure the correct materials and labelling are used for each format without altering the product formula.
- Waste Tracking & Reporting – Any yield variance is recorded, allowing for detailed efficiency analysis. Over time, reports reveal trends that inform process improvements and waste reduction.
Having all of these functions within a single central platform makes it far easier for brewery management to track and report on, and keeps all teams joined up in their work processes.
Driving Efficiency With Business Central
When tailored to the specific requirements of process manufacturing, Business Central provides the ability to manage every stage of production.
It enables precise control over formulas, rigorous quality management, complete traceability, and stronger alignment between production and packaging.
For organisations that invest in the right configuration, the result is streamlined operations, reduced waste, and improved profitability—delivering measurable business transformation.
Looking for an ERP solution to handle your process manufacturing requirements? Get in touch to discuss more with our consultants and arrange a demo:
