When to Build vs Buy: The Custom ERP Decision

Every manufacturer eventually faces this question: should we buy off-the-shelf software or build something custom? Here's how to make that decision.

When Off-the-Shelf Works

Buy existing software when: - Your processes are standard for your industry - You're willing to adapt your workflow to the software - You need a solution quickly (weeks, not months) - You have limited IT resources - Your budget is under $50K

Modern ERP platforms like Odoo, ERPNext, and industry-specific solutions can work well for many manufacturers.

When Custom Makes Sense

Consider custom development when: - Your competitive advantage comes from unique processes - Off-the-shelf solutions require extensive customization anyway - You need deep integration with specialized equipment - You have complex, industry-specific requirements - You're willing to invest 6-12 months in development

The Hybrid Approach

Often the best solution is hybrid: use off-the-shelf for standard functions (accounting, HR) and build custom for your unique operations (production scheduling, quality control).

This gives you the speed and cost-effectiveness of existing software where it works, and the competitive advantage of custom solutions where it matters.

Real-World Example

A precision metal fabricator came to us after spending $200K customizing an off-the-shelf ERP. It still didn't fit their workflow, and every update broke their customizations.

We built them a custom production management system that integrated with their existing accounting software. Total cost: $150K. Result: a system that fits their exact workflow and gives them a competitive advantage.

Making the Decision

Ask yourself: 1. Is our process truly unique, or do we just think it is? 2. What's the total cost of ownership over 5 years? 3. Do we have the resources to maintain custom software? 4. Where do we need flexibility vs. standardization?

The right answer depends on your specific situation. But don't assume off-the-shelf is always cheaper or custom is always better. Analyze your actual needs and constraints.