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Why Manufacturers Need to Upgrade Their Custom ERP Software

Here are 5 reasons why businesses should upgrade from custom ERP software to off-the-shelf ERP.<br>

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Why Manufacturers Need to Upgrade Their Custom ERP Software

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  1. 5 Reasons For Moving In-House ERP To The Cloud

  2. Introduction We all are aware of the fact that Enterprise Resource Planning software unites the organization by bringing every piece of data together. From sales to accounts, production to logistics, it aims to harness the full potential of every department and assures competitiveness across the company. The very question that springs to the minds of business owners before investing in ERP is whether to opt for a packaged or commercially available ERP (off-the-shelf ) or get a custom-built solution. Custom ERP providers ensure to build a solution from scratch – keeping in mind the detail of budget, needful resources, timeline, and business needs.

  3. 1. High upfront cost When you talk about investing in a custom-built ERP software, you need to spend a considerable amount of time and efforts to get it created from scratch. It can be heavy on your pocket. The more functionalities you get customized, the more money you have to pay. On the other hand, off-the-shelf ERP software is comparatively less costly. Off-the-shelf or commercially available solutions are less expensive at the time of purchase but can charge exorbitant rates in the later stage (while upgrading etc.)

  4. 2. Time-consuming process In custom-built ERP, the development phase may extend for months. While the software developers may try to meet your expectations and build bespoke ERP modules and functionality, it might take several months to touch the go-live date. This is what makes off-the-shelf ERP more convenient to implement. However, here also, implementation date may vary from a few days to several months – this depends on various factors (no. of members, industry verticals etc.). Off-the-shelf ERPs are ready to be installed, once you buy it.

  5. 3. Scalability Once you invest in an ERP, what are your future plans for moving forward? Keeping the unexpected business plans and roadmap in mind, organizations should opt for an ERP that is flexible enough to fit their needs. Talking about custom-built ERP, if it does not support your business goals and changing strategies, this creates hindrances, which badly affects the bottom-line. Packaged ERP systems are designed to scale according to the growing businesses’ needs and future demands.

  6. 4. Poor support services Custom-built ERP systems are difficult to maintain and update. If in any case, an issue arises, the business owner will have to contact the team to fix it and during this process, your business may face setbacks. It will again lead to higher investment in resources and time. In the case of off-the-shelf ERP or commercially available ERP, software maintenance is very well taken care of by a certified team of professionals who are designated to fix issues. It guarantees 100% uptime.

  7. 5. Inability to leverage advantages of moving to the cloud Cloud technology has become the lifeblood for modern businesses. It lets you work freely from anywhere you want and offers great security of data. This is one of the basic reasons why cloud ERPs are preferred by businesses. When you opt for a custom-built ERP, a group of developers create this software and mostly, it is not available on the cloud. On your demand, if they develop a cloud-based solution, it is not tried and tested. Now here, you take the risk! Custom ERP will not have all the cloud capabilities. On the other hand, commercially available or packaged solutions are built on trusted platforms which are globally renowned – are available on-premise as well as on cloud.

  8. Conclusion Choosing a cloud partner with the right capacity is necessary. Needless to say, that there are many cloud ERP software providers all over the world. However, with the packaged solution, you get all the basic business management tools integrated within a single solution – once you buy the software, implementation starts, and it gets up and running within a few weeks. Thus, this solution is sometimes not-so-easy to understand and use. Still confused about custom ERP vs branded ERP? Feel free to contact us.

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