The Hidden Cost of 'Good Enough' Systems
Why Modernization is Essential for Manufacturers
Discover how outdated systems drain resources and limit growth, and why upgrading to a custom ERP can provide strategic benefits other methods can’t match.
The True Cost of Legacy Systems
Legacy systems indicators
- Systems designed for windows versions that are no longer supported
- Systems built with technologies where development staff are hard to find
- Systems that require consistent work arounds to “Make it work”
- Systems that require a multitude of excel spreadsheets used to complete critical functions that are not built in
- Systems with capabilities that end at the “Old Way” of doing things and can’t be upgraded to support your growth
Your system might not be old but it might be legacy due to your it’s inability to fully run your top line processes.
Many manufacturers continue to rely on outdated systems, believing them to be sufficient for their needs. However, these legacy systems often lead to inefficiencies, increased maintenance costs, and operational blind spots that can hinder growth and innovation.
The hidden costs of these systems are not just financial. They include missed opportunities for process optimization, reduced scalability, and the inability to integrate with modern tools. By clinging to ‘good enough’ solutions, manufacturers risk falling behind in a competitive market.
Industry week recently highlighted custom software benefits with MES systems
Essential Features of a Modern ERP System
Most manufacturers don’t need a bloated ERP with 100 modules. They need a lean, purpose-built system that supports their core operations:
- Customer management
- Quote generation
- Material tracking
- Purchase order processing
- Simple FIFO inventory
- Order tracking
- Custom project tracking
- QuickBooks Online integration
No HR suite. No CRM you’ll never use. Just the essentials—built to fit your workflow.
Streamlined Customer Management
Efficiently handle customer interactions and data to improve service and satisfaction. Integrate your CRM with your CPQ systems and order fulfillment opaerations to reduce double entry and produce consistent focused data.
Quote and Order Processing with Custom CPQ Systems
Automate and simplify the quote-to-order workflow to reduce errors and speed up transactions.
Seamless Integration with QuickBooks
Ensure smooth financial operations with direct QuickBooks Online integration.
Custom Project Tracking
Track projects with precision, tailored to your specific business needs.
ERP Cost Comparison
Custom ERP (Tailored Solution)
A custom ERP is designed specifically for your business needs, ensuring you only pay for features you use. Implement integrations that matter to your process and with tools you need.
- Base Cost $50,000–$70,000 80%
- Implementation $5000 (built into development) 20%
- Feature Relevance Only what you need 92%
- Integration Ease Native QuickBooks Online integration 60%
- Scalability Built to grow with your business 80%
- Support Direct access to developers 80%
Off-the-Shelf ERP (Standard Package)
An off-the-shelf ERP offers a pre-packaged solution with a variety of features, some of which may not be necessary for your business. Some integrations included.
- Base Cost $3,213/user/year + add-ons 60%
- Implementation $25,000–$100,000 + (consulting, setup) 40%
- Feature Relevance Bundled features, many unused 65%
- Integration Ease Built in connectors 80%
- Scalability Often requires tier upgrades 65%
- Support Tiered support plans 75%
Auto Parts Supplier Success Story
ERP Implementation
Client
Date
Goals
Replace their legacy system with a custom-built ERP.
- Streamline quote-to-order workflows
- Reduce inventory errors
- Integrate with QuickBooks Online
The supplier replaced their outdated legacy system with a custom-built ERP, achieving streamlined processes and reduced errors. The transition led to a 30% decrease in inventory discrepancies and faster order processing, all while integrating seamlessly with QuickBooks Online. This strategic move not only improved operational efficiency but also resulted in significant cost savings by eliminating recurring subscription fees.
Results:
- 30% reduction in inventory errors
- Faster quote generation and order processing
- Seamless accounting integration
- Total cost: $55,000—less than two years of their previous ERP subscription, and no $25,000 implementation fee
This wasn’t a tech overhaul. It was a business upgrade.
Final Thought: Modernization Isn’t a Luxury—It’s a Necessity
Legacy systems are holding back manufacturers not because they’re broken, but because they’re outdated. Modernizing isn’t about chasing trends—it’s about building tools that work for your business today and tomorrow.
Why Custom ERP is Essential for Midwest Manufacturers
Manufacturers are discovering that custom ERP solutions offer tailored benefits that off-the-shelf systems simply can’t match. By focusing on essential features, these systems eliminate unnecessary complexity and reduce costs.
Tailored Solutions for Unique Needs
Custom ERPs are built to address the specific challenges faced by manufacturers, such as integrating with existing accounting tools and optimizing inventory management. This ensures a smoother workflow and better resource allocation.
Long-Term Savings and Efficiency
Investing in a custom ERP means owning the system outright, avoiding ongoing license fees, and achieving faster adoption rates. This approach not only modernizes operations but also secures a competitive edge in the market.
Transform Your Operations Today
Discover how a custom ERP system can streamline your processes and drive growth. Contact us to explore tailored solutions that meet your unique business needs.