The short answer is that you use processes to exploit concurrency. Replacing functions with processes where you sequentially run one process, then send its value to another process which then does its work and sends its result to the next process etc each process terminating after its done its bit is the wrong use of processes. Here you are just evaluating something sequentially by sending data from one process to another instead of calling functions.
If, however, you intend this chain of processes to be able to process multiple sequences of "calls" concurrently then it is a different matter. Then you are using the processes for concurrency. The more general way of doing this in erlang is to create a separate process for each sequence and exploit the concurrency in that manner.
Another use of processes is to manage state.