Why Custom ERP is the Best Fit for Scaling Businesses
February 12, 2025Are your business processes scattered across multiple software platforms? Do you struggle with data silos and inefficiencies? If so, it’s time to consider a custom ERP system.
Imagine buying a suit that does not fit well. Too tight in some places, too loose in others…What’s the sense of wearing this? That’s exactly what happens when businesses use off-the-shelf ERP systems.
Half of companies already opted for customization seeing such benefits as improving productivity (78%), removing silos (77%), boosting interactions with suppliers (76%), and enhancing customer experience (70%).
Flatlogic’s code generator offers a fast and efficient way to create a custom ERP without the cost of an arm and a leg. The cherry on top: it would be ready in minutes!
Now, let’s dive deep into the details. Read this article and find out:
- What is custom ERP?
- What are the benefits of custom ERP?
- How can you create a custom ERP with Flatlogic’s code generator?
What is custom ERP?
ERP is a software system that focuses on internal business processes and collects information from various departments in a common database. This helps ensure that everybody in your company has access to the same information.
ERP is like a Swiss army knife, as it can combine all the systems into one platform. This means you don’t need to rely on multiple software. One major feature of ERP is reporting on each department, which helps to share information more easily. It also should be differentiated from CRM because it rather focuses on managing internal operations rather than customer relationships. 
Basically, there are two types of ERP: custom and off-the-shelf. Off-the-shelf ERP is a pre-built standardized software solution designed to handle common business processes. The big names in this industry are Oracle and Microsoft. The recent stats says that Microsoft holds a 25.74% market share in the ERP category.
As mentioned, many companies already saw the potential in customizing their ERPs. The diagram below shows the figures more precisely.
With this in mind, you see that choosing a solution that works for you, not against you, is always better. Especially if you want to avoid common web app mistakes startups often make. Now, let’s explore the benefits of custom ERP more closely.
Benefits of custom ERP
According to Panorama Consulting Solutions, 75% of IT companies believe that customization is the key to ERP success. But why do they think this? What’s so special about custom ERP?
- Tailor to your unique needs
An ERP system designed specifically for your business ensures that all features and functionalities align with your unique processes, goals, and challenges. Unlike generic solutions, a tailored ERP addresses specific pain points and adapts to your workflows, whether you’re managing inventory, customer relationships, or complex operations. This customization enhances productivity because your team doesn’t need to spend time adapting to software that wasn’t built for them.
- Integrate with existing systems
One of the standout benefits of ERP systems is their ability to integrate seamlessly with the tools and platforms your business already uses. This eliminates the silos between departments, fostering better collaboration and communication across the organization. For example, when sales data is instantly accessible to the finance team, decision-making becomes faster and more accurate.
Moreover, seamless integration minimizes disruptions during implementation, allowing your business to transition smoothly without losing valuable time or data.
- Scale easily
Custom ERP solutions are designed to grow and evolve alongside your business, making them highly scalable and flexible. Unlike off-the-shelf systems, which often struggle to accommodate rapid growth or changing needs, custom ERP software allows you to add new features, modules, or users without disruptions. It adapts seamlessly to industry shifts, regulatory changes, or expanded operations, ensuring your business remains agile.
Example: Amazon has integrated all of the key modules into its system. This includes financial tools, logistics management, inventory tracking, customer relationship management (CRM), and analytics platforms.
Even if you don’t need as many, ERP allows you to add as many modules to your system as you need. You don’t need to pay for excessive features.
- Enhance data security
Data security is a top concern for any business, and a modern ERP system provides robust solutions to safeguard your sensitive information. Advanced encryption, role-based access controls, and regular security updates ensure that only authorized personnel have access to critical data. Centralizing information within an ERP also reduces the risks associated with managing data across multiple platforms, where vulnerabilities can arise.
- Improve efficiency
Business owners who have already integrated ERP into their processes saw the following results:
- 40% in IT costs
- 38% in inventory levels
- And 35% in cycle time
Centralized data means employees no longer need to spend hours searching for information or reconciling discrepancies between systems. Tasks are completed faster, with fewer errors and better resource allocation.
- Think smart & make better decisions
In today’s fast-paced business environment, data-driven decisions are a key competitive advantage, and ERP systems provide the insights you need to stay ahead. With real-time access to accurate data, business owners can monitor performance, identify trends, and anticipate challenges before they arise. Built-in analytics and customizable dashboards present complex information in an easily digestible format, empowering you to make informed decisions quickly.
- Gain competitive advantage
Implementing an ERP system positions your business to outpace competitors by operating more strategically and efficiently. With streamlined processes, you can deliver products or services faster and with higher quality, enhancing customer satisfaction and loyalty. Tailored insights help you identify untapped market opportunities, refine your offerings, and stay ahead of industry trends.
Do the benefits outweigh the costs?
The average cost of ERP is something between $1,740 and $9,330 per month. Of course, figures vary, and vendors often customize their pricing to fit specific buyers.
To clarify things, Salesforce charges up to $300 per user a month. At the same time, the less-known HoneyBook charges only $9 per user a month. A staggering difference, does it? These prices also do not include the cost of implementation, user training, and support.
One key factor impacting the cost of your ERP is the size of your business. The Census Bureau and the U.S. Small Business Administration (SBA) highlight that price is based on your total employees and annual revenue.
Other factors which can increase the cost of your ERP are:
- Licensing model
- Deployment type
- Business size and complexity
- Industry-specific requirements
- Customization and integration
- Modules and features
- Data migration and implementation
- Training and support
- Compliance and security features
- Infrastructure costs
- Operating system and platform
- Third-party add-ons and services
As you can see, there is no one answer to how much your ERP could cost. If implemented and managed correctly, the benefits of ERP typically far outweigh the costs, leading to long-term operational efficiencies, improved customer experiences, and enhanced profitability.
We also have good news for you: for custom ERP with Flatlogic’s code generator, you’ll pay less than $40. It is possibly the smallest sum for such a robust and scalable solution.
Off-the-Shelf ERP vs. Custom ERP. How to choose the best?
| Feature | Off-the-Shelf ERP | Custom ERP |
| Cost | Lower initial cost but may require additional expenses for customization and scaling. | Higher initial investment but cost-effective in the long run due to tailored fit. |
| Customization | Limited; only minor adjustments can be made. | Fully customizable to align with specific business processes and workflows. |
| Scalability | Restricted to predefined features and modules; may not adapt well to future growth. | Highly scalable, with the ability to add modules and features as the business grows. |
| Integration | May face compatibility issues with existing tools or systems. | Seamlessly integrates with legacy systems and third-party tools. |
| Implementation Time | Faster to deploy as it’s pre-built and ready to use. | Takes longer to develop and implement due to tailored features. |
| Performance | Generalized design may result in inefficiencies for niche processes. | Optimized for specific business needs, resulting in better performance. |
| Support and Maintenance | Dependent on the vendor’s support plans, which may be limited or costly. | Dedicated and tailored support from the development team, ensuring faster resolutions. |
| Ownership | The vendor retains ownership of the software; you’re essentially licensing it. | Full ownership of the software, offering control over updates and modifications. |
| Flexibility | Difficult to adapt to unique business needs or rapid changes. | Highly flexible and responsive to changes in business requirements. |
| User Experience | Designed for a general audience, leading to potential usability issues. | Tailored UI/UX, designed specifically for your team and operations. |
Remember: If you choose the wrong ERP, there is a 50% risk it fails, and so your startup can. Make sure you make a wise decision from the very start.
When to choose custom ERP?
- Highly specialized operations
If your business has unique processes and requires specialized features (such as, advanced reporting, for example), generic ERP may fall back.
Example: Think about a pharmaceutical company. It may need a customized tracking feature to monitor drug production, expiration dates, and compliance with strict regulations like FDA or EMA standards.
- Complex workflows
A custom ERP might also be a good fit if your company has multi-step workflows, intricate approval chains, or cross-departmental processes. Out-of-the-shelf ERP may not fully support these operations.
Example: A construction firm managing multiple projects across different locations may need a custom ERP to streamline project scheduling, budgeting, and vendor management.
- Scalability requirements
If you want your business to grow and expand quickly, you might not want performance bottlenecks on your way. Custom ERPs allow you to add new features, modules, and users in case of necessity.
Example: A tech startup with rapid growth might start with basic ERP functionalities and later integrate advanced analytics, AI-powered forecasting, or blockchain-based transactions as the company expands.
- Integration needs
Many companies have different software tools in their arsenal. Examples of these are CRMs, warehouse management systems, and e-commerce platforms. Custom ERP helps all these components work together without any data silos or workflow disruptions.
Example: A retail company running both online and offline stores needs a custom ERP to sync inventory, customer data, and sales tracking across multiple platforms.
Case studies: Companies that successfully implemented custom ERP
- Starbucks
Starbucks required an ERP system to manage all its financial and supply chain operations in one system. By utilizing Oracle ERP, the company standardized its reporting and budget tracking and reduced delays.
Speaking figures, here are the results of introducing ERP into Starbucks’s operations:
- Reduced annual IT costs by $30 million
- Increased earnings by 25% (and it happened soon after implementation!)
- Stock price soared from $9 in 2008 to $90 in 2022
- Increased revenue growth by 60%, with over 10,000 new store openings
- Manufacturing Management
Drawbacks: complex implementation, high costs, limited flexibility for store-level operations, customization complexity
- Toyota
Toyota operates in multiple (170!) countries with complex manufacturing, logistics, and financial processes. Considering different tax regulations, financial reporting standards, and environmental policies across regions, Toyota needed an efficient way to standardize things. Toyota has decided to use both Microsoft 365 ERP and SAP ERP.
Drawbacks: Expensive licensing and hidden costs, integration issues with non-Microsoft systems, limited flexibility for highly specialized industries
- Amazon
Amazon also used SAP ERP to manage complex global tax structures and revenue tracking. The company operates one of the world’s most complex and high-speed supply chain systems. This means it should follow varied tax regulations, currency exchanges, and financial reporting standards and handle millions of daily orders across multiple warehouses, fulfillment centers, and third-party logistics partners.
“Visualization using this system helps us improve our efficiency in performing tasks that used to be handled manually, and enables us to perform all of our jobs on mobile devices. Field service technicians also told me how this system helped them perform their jobs. Going forward, we will expand this system to various locations in Asia, Central and South America, and within Japan,” Amazon says.
Drawbacks: Scalability issues with rapid growth and limited e-commerce adaptability
- Walmart
Walmart has decided to make a smart move and create its own ERP system. The company wanted to centralize its financial reporting and accounting to manage orders, inventory, and customer interactions, and offer personalized marketing.
You may ask why Amazon or Toyota chose another way? The thing is that Amazon’s business model is more decentralized and product-specific than Walmart’s. It just does not require a single, monolithic ERP system.
Drawbacks: Walmart’s ERP wasn’t naturally compatible with many suppliers’ systems, requiring custom APIs and middleware solutions. It also had a longer implementation time
Facebook also opted for custom-made ERP. Like Amazon, it also decided to create custom-built enterprise management tools tailored for different business processes.
Drawbacks: Due to the fact that Facebook has chosen a decentralized approach, the company could face potential inefficiencies and overlapping functionalities.
TOP 5 most popular platforms to create your own ERP
With Flatlogic’s code generator, you can easily create your ERP in minutes. Choose us if you priorotize cost-effectiveness, rapid deployment, and scalability.
Features of ERPs:
- Modular architecture
- Rapid deployment
- Highly customization
- Integration capabilities
- Robust security features
- User-friendly interface
Microsoft Dynamics 365 is one of the most famous options, which can offer you almost everything — a modular approach, AI-powered insights, cloud-based platform, and much more.
What about the downsides? Well, Microsoft Dynamics 365 can be pretty expensive for startups. You also need to have technical expertise to go all in with this option.
Features of ERPs:
- AI-enhanced management of finance, sales, and operations
- Instant customer insights in real-time
- Machine learning algorithms for accurate demand forecasting
- Tailored recommendations for optimizing business processes
- Integrated AI-driven chatbots for streamlined customer support
NetSuite offers a cloud-based enterprise resource planning ERP, which offers to track your operations in real time and get actionable insights into financials, inventory, sales, and customer interactions.
Features of ERPs:
- Comprehensive financial management
- Real-time inventory management and tracking across multiple locations
- Built-in CRM with lead management, sales tracking, and customer service support
- Cloud-based platform
- Mobile accessibility
Odoo is an open-source ERP platform, which offers both cloud-based and on-premise deployment options. It allows businesses to customize and scale the system based on their needsю
Features of ERPs:
- Cloud-native architecture
- Unified finance and HR platform
- AI-powered automation
- Advanced analytics and reporting
- Seamless third-party integrations
Features of ERPs:
- Cloud-native architecture
- Unified finance and HR platform
- AI-powered automation
- Advanced analytics and reporting
- Seamless third-party integrations
Practical wrap-up…
As you can see, custom ERP can be a super-efficient sidekick in streamlining your business operations. This solution helps you to have control — you tailor features you need to fit your exact business needs. Flatlogic’s code generator makes the process faster, easier, and more cost-effective than ever.
So, why choose a system that only half-serves your business? Take control of your business operations today. Start building your custom ERP with Flatlogic’s code generator now!
