Why now is the best time to build an ERP system
In the US, around 40% of all food is wasted — with 66 billion pounds of this being commercial food waste. Meanwhile, the UK produces around 9.5 million tonnes of food waste each year. These are staggering figures, both for society in general and for business in particular. Waste is unsold product, which significantly reduces a company’s potential revenue. Here are some typical situations that you can treat as warning bells:
- Your warehouse is usually either overstocked or lacking in popular items;
- The logistics from purchase to delivery are too complex and error-prone;
- There are frequent errors and inaccuracies in the reports generated by the accounting department.
The good news is that you can avoid such failures by implementing a custom Food Manufacturing Software (ERP) system tailored to your specific business needs. Using it can reduce administrative costs reduce administrative costs by 22%.
In this article, we’ll look at the benefits of customised ERP software, its pros and cons for retail businesses, the process of building effective solutions and things to consider when choosing a development partner.
What is ERP Software Development
Let’s start with explaining what ERP restaurant software is and how it can be used for retail and restaurant business. Imagine that at the start, you only have products that you are selling yourself. The first customer is impressed and they recommend you, leading to an increase in sales. As sales grow, you need more products, more salespeople, and more resources to manage all the processes. Each step of the workflow becomes more complicated, making it harder to keep everything under control.
And this is where ERP Solution comes out to streamline your business operations. His software is designed to improve efficiency by centralising all business data in one platform. The development of an ERP application offers a range of benefits, including enhanced data management, and better decision-making across all departments — from accounting and logistics to sales and marketing.
In this article we’ll focus on ERP software for food industry and retail, that we have a lot of expertise in working with. Check out the portfolio. The default system typically consists of several modules, each designed to support, automate, and enhance a specific business function:
- Finance Module — automates financial transactions and ensures compliance with regulations;
- R&D and Engineering Module — stores data and tools for product design and development;
- Asset Management Module — manages information related to assets, devices, and infrastructure;
- Sales Module — handles order management, contracts, billing, customer interactions, and other sales processes;
- Supply Chain Module — optimises inventory, warehouse management, and logistics;
- Manufacturing Module — ensures production meets demand using modern technologies to create products that meet user needs;
- Sourcing and Procurement Module — manages procurement of materials and services for manufacturing;
- Service Module — oversees company operations, asset maintenance, and customer issue resolution;
- Human Resources Module — manages employee data, time tracking, payroll, performance reviews, and engagement.
These modules make retail ERP systems, a comprehensive solution that integrates all aspects of your business and makes it easier to scale as your company grows.
Why Do You Need an ERP System
If you still have any doubts about the need to automate your business, just look at the statistics. The global business software market is estimated to be worth USD 71.11 billion in 2022 and is expected to grow at a CAGR of 11.3% from 2023 to 2030. And most of that belongs to ERP restaurant software: its market size was valued at USD 54.76 billion in 2022 and is expected to grow at a CAGR of 11.0% from 2023 to 2030.
But more than numbers, we can only trust the people themselves. And if you’re hearing these arguments often from your employees, it’s probably a reason to search for a custom ERP software developer.
Sound familiar? Take it as a sign to simplify everyone’s life and run ERP.
What are the benefits of customised ERP software
The first step in implementing ERP is to decide what type of ERP you need. There is so much off-the-shelf software available from brands such as Oracle, Microsoft, Infor, SAP, IQMS, Sage, Epicor, Netsuite and others. But remember that as your business grows and your processes become more complex, there may be some features or options that you miss out on. These solutions are designed to handle typical tasks, not to create a custom ERP solution that perfectly suits the specific needs of your retail or food business.
A full comparison can be found below:
Here is the answer to what is customisation in ERP: the ability to stay flexible, changing conditions and providing better control.
The Power of an ERP System for Your Business
Most retail ERP systems aim to improve operational efficiency by automating some processes, providing deeper analytics and better control of key operations.
The Pros of Customising Your ERP
Here are the key areas where you can achieve improvements through the benefits of customised ERP software:
Routine processes automation
Delegate to ERP manual tasks such as order processing and inventory updates. In retail, this can include the reordering process for popular items, reducing out-of-stocks and human errors.
Single communication channel
Turn your ERP system into a central hub for employee, purchase and sales data, making it easier to track trends, customer preferences and recurring errors.
Fast reports
Customised ERP systems allow retailers to generate real-time sales and stock reports in the formats you need, such as infographics and charts. Gain the valuable insight you need to respond quickly to market changes.
Cost Tracking and Expense Management
Retailers can track and optimise their operating costs to maximise margins by identifying underperforming products and making better inventory management decisions.
Transparent Internal Processes
Predict and manage potential risks such as supply chain disruptions and seasonal sales fluctuations, leading to a clearer strategic vision and a proactive approach to challenges.
The Cons of ERP Customization
And here are some important things you need to consider before starting development.
High Initial Costs and Longer Implementation Time
As we mentioned previously, developing a customised ERP system can be more costly and often takes longer to implement than using standardised solutions. Be prepared for additional expenses and resources during the extensive requirements gathering, design, development, and testing stages.
The risk of over-customization
Organisations have a tendency to over-customize their ERP systems by adding unnecessary functionality, which can complicate processes and lead to a bloated and difficult-to-navigate system. This undermines usability and increases the likelihood of user errors.
Bug fixing and technical support
Even after the final release, it is possible that there may be some bugs in the operation of your custom ERP system, which could affect its performance. To ensure that these issues are addressed quickly, it is important to outsource the development process to a professional software studio. For example, we strive to keep in touch with our customers and are always ready to improve products that have already been released to bring them up to date. Here is a story of a long-term partnership with the client who started with a simple retail solution and scaled the product with our help, adding new functionality as they went.
Additionally, remember that any software requires regular updates in order to maintain optimal performance. While this may involve additional costs, it will help ensure that your ERP system continues to function at its best.
How to Build an ERP System from Scratch
Now, let’s imagine that you are going to build ERP restaurant software. Here is the step-by-step guide you need to follow, covering all the key stages to make your solution really effective.
Conducting market research
Before you start development, you need to understand how modern services and software that solve business problems are evolving. And then decide which trends can be applied to your business processes. We recommend starting with secondary market research and exploring open sources. You can find one of the latest studies with ERP information here.
Then move on to primary research. Survey your employees to find out what work problems they face most and what tools could improve their productivity.
We recommend starting with a simple set of features that can be implemented in your Minimum Viable Product (MVP) and gradually expanding the product, rather than creating a complex architecture from the beginning. To do this, divide the entire workflow into areas and highlight the tasks and processes in each area that need to be improved.
Selecting features for MVP
The basic module of most ERP systems includes an administration platform, user authorisation and profile management, data analysis and reporting options. Here we covered the core features that can be used in retail or restaurant ERP systems:
For more insights into building successful MVPs, read this article.
Interface design and choose of technologie stack
To make userflow easy and direct, a custom ERP software developer should create a system design that maps out the modules, functionalities, and features based on the gathered requirements. Planning also involves defining the technical specifications, such as hardware infrastructure, software technologies, databases, and integration points with other systems.
Our main front-end stack is React Native. We choose it because it:
- Does everything for cross-platform solution — you can use your ERP on desktop, web and mobile;
- Provides the ability to update quickly — any improvements are automatically reflected throughout the product ecosystem;
- Is constantly evolving — upgrades allow us to improve our development approach through better optimisation.
Development process
With the system design completed, the development team proceeds to build the ERP system. This involves writing code, developing the necessary modules, and customising the solution to meet your specific needs. The team implements the workflows, data structures, user interfaces, and integration points that were defined during the system design phase. Here we describe our processes.
Testing ERP system
Once the development phase is complete, rigorous testing is carried out to ensure that the ERP system works as intended. Bugs, issues and performance bottlenecks are identified and resolved to ensure the system runs smoothly, accurately and securely.
Read more about testing methods we use and the QA tariffs we offer.
After the ERP implementation, you can test the released product to make sure that everything works as it should and that employees don’t have any problems using the functionality. Don’t hesitate to contact the tech team if you find any shortcomings in the ERP system. We try to discuss all peculiarities during the consultation and support our clients during the whole development process.
How to Choose a Custom ERP Software Development Company
Choosing the right development partner for your custom ERP project is crucial to the success of your business. Here are the key factors to consider.
Explore the portfolio
Successful case studies are essential when it comes to developing ERP systems. Look for companies that have a proven track record of providing high-quality solutions in this field. It’s important to select a company that has experience creating systems for industries similar to your own. It will ensure that they understand the specific challenges and requirements of your business. You can see our projects here.
Assess Technical Capabilities
Check that the company has a team of developers who are skilled in the technologies and platforms relevant to your project. Whether you need expertise in cloud-based systems, specific programming languages or integration with third-party software, make sure the company has the technical depth to meet your needs. Most of our team members share their experience and new developments discoveries not only in GitHub, but also in their articles on front-end, back-end and mobile domains.
Check References and Reviews
Transparency is the key to a trusted partnership. Don’t neglect to study references and read reviews from past customers, especially those dedicated to completed ERP projects and their capabilities. This information can give you an insight into the company’s problem-solving skills, quality of delivery and ability to meet deadlines. The reviews of our work can be found on Clutch.
Consider the Project Management Approach
Ensure that the company has a clear and transparent communication process in place. This should include regular updates and opportunities for feedback throughout the development process. Check if they use modern collaboration tools to facilitate communication between your team and theirs, ensuring that both parties are aligned on goals and deadlines.
A robust project management methodology is crucial for keeping an ERP project on track. Ensure that the company provides clear timelines, milestones, and deliverables to ensure transparency from start to finish. They should also have contingency plans in place to address any challenges that may arise, such as changes in scope or unexpected technical issues.
Our Expertise in ERP development
We see ourselves not just as developers, but as experts with a deep understanding of business needs. From first consultation to final product launch, we provide our clients with effective strategies and solutions based on our extensive experience and best practices. Here are the benefits you’ll get by choosing as a development partner.
In-house team
For more than 10 years we have been providing our clients with a full cycle of ERP solution development, controlling each stage: gathering initial information about the project, building processes and communication, working on the backend and frontend, creating interfaces and testing.
This approach has been recognised by the international community: every year our company is included in the lists of the best software and mobile application developers. See all the awards here.
Flexible and cost-saving development
We help both enterprise, mid-size companies and startups. Most of our products allow business to grow fast while using provided solutions.
Here is the case of software development for the company Mediacube, which became an official Youtube partner after implementing our solution. And we also can find a way to integrate the ERP system into current business infrastructure without rebuilding the whole logic.
We’ve also successfully released our own open source software, called Admiral. It allows us to develop interfaces more quickly in its environment (due to ready-made elements and templates), while still having the flexibility to customise anything we want. That’s crucial for ERP systems, where visualisation can play a key role in usability. And it can also save your costs and resources.
UI/UX design
In addition to full-cycled development, we have a dedicated design team. Our expertise is backed by high ratings on DesignRush and client’s reviews. The main idea behind the interface design approach is to ensure maximum usability for the user, packaged in visually appealing templates. This means that your employees do not have to spend a lot of time learning the ERP system and can quickly start using its functions.
Here is our example of a custom ERP system. Find more on Dribble.
FAQ
How can an ERP system benefit my business?
Automation of routine processes, single data storage and communication channel, detailed data analysis and fast reporting, cost tracking and expense management, transparent internal processes.
What is the difference between custom and off-the-shelf ERP solutions?
Off-the-shelf ERP systems are quick and easy to implement, but difficult to scale and change in the future due to limited functionality. By choosing a custom solution, you can tailor any functionality to meet the needs of your business.
What are some risks of building a custom ERP solution?
High initial costs, longer implementation time, additional cost for technical support and bug fixing, risk of over-customization.
How can I choose the right ERP system for my business?
Book the consultation with our business managers to see the variants.
What is involved in building a custom ERP solution?
Conducting research to identify starter functions and the tasks they should perform, developing an MVP, interface design, system testing and implementation into business operations.
How can I measure the success of my ERP system?
The success of an ERP system is demonstrated by the improvement of indicators and metrics that measure the effectiveness of the process for which the solution is responsible — sales growth, error and waste reduction, performance growth, etc. Also look at ROI (return on investment) — a calculation of the monetary value of an investment compared to its cost.
What is the ERP software development cost?
The cost of developing a custom ERP system depends on the modules and functionality you want to include in it: on average, a basic module will cost from $2k, a finance module — from $3k, a supply chain and manufacturing module — from $4k, an HR module — from $2k, a customer module — from $5k. Budget for testing the final product — at least 15% of the total development cost.