Why is Enterprise Resource Planning (ERP) Software Important?
- Manage and automate daily operations
- Track inventory and orders
- Handle accounts payable and receivable
What is ERP Software?
An ERP software is a system that helps businesses manage and automate their daily operations. It can help manage inventory, track customer orders, and handle accounts payable and receivable.
Enterprise Resource Planning (ERP) software has become the most important business tool of the 21st century. In the 90s, ERP software became increasingly popular among nearly all industries around the world. These days, for any business bigger than a Mom and Pop shop, a good ERP System is considered essential. The global ERP software market is expected to be worth $78 billion by 2026.
What is Custom ERP Software?
A custom enterprise software is one that is tailored to the specific needs of a single company. It will include features, workflows, and integrations that are unique to the business.
Custom ERP software is a fantastic asset for any business. It will streamline their operations and improve their efficiency. By having a system that is designed specifically for their business, they can be sure that they are using the absolute best software for their needs.
Advantages of Custom ERP Software?
Custom ERP software can be tailored to the specific needs of their industry. With this type of software, your company will be able to integrate its processes, workflows, and infrastructure. This will help the business function efficiently and without technical problems. As a result, you can focus on growing and flourishing.
Save on Administrative and Operational Costs
Custom ERP software can help you save money on administrative and operational costs. By streamlining common processes, employees can increase their productivity. In turn, it will increase the bottom line.
Customized software enables real-time data access for all employees within an organization. This feature helps the business analyze common client requirements and improve its services in the future. Also, custom ERP software can be accessed from any device with a web browser that works well with open-source desktop environments.
Flexible and Adaptable
Custom ERP software is flexible. It is able to perfectly match the needs of any industry. It can perfectly adapt to the workflows specific to a single company and continue to adapt as those workflows change.
Fast Bug Fixes
Another disadvantage of using off-the-shelf ERP software is that you are dependent on the software vendor for updates and support. If there are any bugs or problems with the software, you have to wait for the vendor to release a fix or patch. Unless you are a multi-billion dollar company, good luck getting the attention of the vendor.
With Custom ERP software, you will have a dedicated project manager focused on ensuring that any bugfixes or changes happen in a timely manner.
Integration and Testing
You will be able to define your business requirements and integrate them into the software. In addition, you can choose the programming environment, languages, and features of your ERP.
You can finely control who has access to what data. You can build your customized ERP step-by-step, performing careful testing along the way.
Higher Level of Security
Custom ERP offers a higher level of security than off-the-shelf ERP systems. This is because custom ERP systems are designed specifically for your organization, taking into account your specific security needs. Off-the-shelf ERP systems, on the other hand, are general purpose and are not always a good fit for your organization’s security requirements.
In addition, custom ERP systems can be built with security features that are not available in off-the-shelf ERP systems. For example, you can include data encryption, user authentication, and authorization controls to help protect your data.
Easy To Add Features
One of the biggest disadvantages of off-the-shelf ERP systems is that you are mostly limited to the functionality that is built into the software. If you need or want a non-standard feature, you will be forced to pay excessively for add-ons or customizations.
Because it is far more difficult to swap away from off-the-shelf ERP systems, they will make you pay through the nose for even minor features.
Reduction in User Errors
Errors are inevitable when relying on manual processes or generic software to manage critical business data. Even a small error can have costly consequences, and as businesses grow, the risks increase exponentially.
Custom ERP software is designed to eliminate human error entirely. By integrating industry and company specific knowledge directly into the code, Custom ERPs do not allow a wide array of user errors.
Client Success Story
Our clients at chemical processing companies frequently maintain large spreadsheets full of chemical conversion ratios. When they manage changes to inventory due to chemicals being combined, split, and processed, they refer to these spreadsheets to know how many tons of chemical “A” have been produced from combining chemicals “B” and “C”.
When user error happens during these conversions, it may be discovered that a site has 20 tons less of a chemical than expected. It is exorbitantly expensive to go back and discover where the error happened, edit the inventory, redo any forms, hold everything at a standstill until 20 more tons are produced, etc. We have massively improved our client’s bottom lines by integrating the ratios directly into Custom ERP systems.
The application automatically knows how many tons of Chemical “A” have been produced, no calculations or spreadsheets necessary.
Don’t Fall for the Myths
There are a lot of myths surrounding customized ERM solutions.
Here are a couple we come across a lot. Be sure not to fall for them!
Myth #1: Custom Solutions are Expensive
Myth #2: You Are Locked In
Cost of an ERP System
The cost of an ERP system can vary widely, depending on the specific needs of your business. The cost will also depend on the size of your business, the features you need, and the level of customization you require. However, most ERP systems will include basic modules for accounting, inventory, and customer relationship management. The price for an ERP system ranges from several thousand dollars to over $10 million. There are subscription-based services available, as well.
The cost of an off-the-shelf ERP solution is higher in the short term and much higher in the long term. In the short term, there will be a massive cost as you customize the ERP system as much as possible for your business, load all the data into it, train users, and learn about common user errors you will need to warn people to avoid.
In the long term, you will have to pay an annual fee to use it, and additional fees for licensing and adding more users. This can add up quickly and will undoubtedly impact your bottom line more in the long run than the maintenance costs of a custom solution.
In addition, whenever you need/want to add features beyond what’s included, you will be charged excessive rates because of how hard it is to swap away from an off-the-shelf system.
The cost of a custom ERP system depends on how many beneficial features you add to the system. The customizations you get, the more it will cost in the short term. But any beneficial feature will save you money in the long term. The biggest strength of custom software is the ability to add as many custom features as you want.
If initial costs get too high, you can leave some of the features for later. You will have more beneficial features even if you spend the same amount of time/money on an off-the-shelf solution. And you can always continue to add features later down the line, either with the same consultants or different consultants.
How Is Custom ERP Software Used?
Custom ERP software is used in a variety of industries for a variety of purposes. Typically, custom ERP is used to streamline and automate business processes that are specific to a particular industry or company. For example, a custom ERP system for a manufacturing company might include specific modules for managing production, inventory, and supply chains.
While the specific features of a custom ERP system will vary depending on the needs of the user, there are some common use cases for custom ERP. Custom ERP can be used to manage financial data, track customer and supplier relationships, and even optimize business processes. In some cases, custom ERP systems can even be used to develop new products or services.
An inventory management system is a crucial part of any business that needs to track and manage its stock levels. A custom ERP inventory management system can be tailored to your specific business needs and can help you keep track of your stock levels, stock locations, and more.
A custom ERP inventory management system can be a great investment for any business, large or small. If you are looking for a way to improve your inventory management, then a custom ERP inventory management system may be the right solution for you.
ERP software is critical for businesses in the logistics industry. They track and manage data across the entire supply chain, from manufacturers to retailers to consumers. This data includes information on inventory levels, production schedules, shipping routes, and much more.
Logistics companies need ERP software that is tailored to their specific needs. As such, it must also be able to handle the unique challenges of the logistics industry, such as managing inventory levels, production schedules, shipping routes, and much more.
Companies use customer relationship management (CRM) and ERP systems to manage their customers and resources. However, these systems are often used independently of each other, resulting in inefficiencies and duplicated effort.
Integrating CRM and ERP systems can create a custom solution that offers the best of both worlds: the ability to manage customers and resources in a single, integrated system. This can allow enterprises to improve their customer service, save time and money, and make better decisions.
Custom Assets Tracking
An ERP system enables organizations to manage and automate their core business processes. A key component of most ERP systems is asset tracking. Asset tracking enables businesses to keep track of their assets, such as inventory, machines, and equipment.
Asset tracking is a critical function for businesses of all sizes. It helps businesses to maximize the utilization of their assets and to avoid costly downtime. In addition, asset tracking can help businesses to optimize their inventory levels and to reduce the risk of theft or loss.
When to Consider a Custom ERP System
Choosing the right system is essential for the long-term success of a business. While ERP once referred only to enterprise companies, it is now available to small businesses, and many benefits can be gained by using a customized ERP system. Not only does it improve processes, but it also helps improve the company’s culture.
Should You Invest in a Custom ERP Solution?
Should you invest in a custom ERP system? The decision of whether to build or enhance a custom ERP software solution depends on the specific needs of the company and its departments. However, some general guidelines can help companies make this decision.
The IT department is key in implementing the software, but each department needs to participate to make it successful. According to research, 91% of companies choose a customized solution, while nine percent opt for one-size-fits-all ERP solutions.
Assess Your Software Products
Before choosing an ERP solution, small-to-midsized businesses should assess which of the many available software products they currently use. Each has different characteristics and interfaces. This makes it impossible to train your employees on multiple products, and the data from them is often different.
In addition, separate software applications do not natively connect to one another, so data must be entered manually. Integrations between these products are also not foolproof and may not work after a software update. The more systems you can add to the ERP solution, the less you will have to worry about these issues.
Replace the Spreadsheet
If after deploying an ERP system your employees are still using numerous supplemental spreadsheets, then the system is not tailored well to your company’s business logic. Good ERP software will have business logic specific to your company built in. If it doesn’t, the ERP isn’t functioning properly and you are likely losing productivity. Also, you probably aren’t seeing all the information your company needs.
For example, our customers in the chemical industry enjoy having the chemical conversion ratios built into the Inventory and Manufacturing sections of their custom ER. This assists the manufacturer with moving chemicals through the manufacturing process without having to use spreadsheets and charts.
Streamline Business Processes, Documentation, and Accuracy
Custom-built ERP software is the best option for businesses with unique needs. It can streamline your business processes and make you stand out from your competitors.
You’ll have complete control over the software’s features and functionality. Also, you’ll be able to stay involved throughout the development process, providing input to ensure that the solution works well for your business.
It also streamlines data and documentation and ensures accuracy. Furthermore, you’ll be able to avoid duplicate documents, ensure data accuracy, and minimize the risks of cyber attacks.
Get Ready to Customize Your ERP Software
If your business requires more functionality than an off-the-shelf ERP provides, you should consider a customized ERP. It is designed specifically for your business and offers flexibility, scalability, and real-time access to your data. So, what’s holding you back? Our team of experienced developers can help you develop custom ERP software. We understand that every business is different. We take the time to understand your unique needs and then design a tailored solution for you. Contact us today for a free initial consultation.