What type of ERP system is best for your business?

Choosing the right ERP system is a big decision for any manufacturing company. The system needs to support the company's key processes, be able to grow with production and be realistic to implement.

But the biggest question often remains: should you choose a standardized ERP system with off-the-shelf modules, or a customized system built to your unique needs?

In this article, we look at the pros and cons, and what manufacturing companies should consider before making a decision.

Pros and cons of standardized and customized ERP systems

Standardized ERP system:

• Implementation: Fast and on a fixed schedule, reducing project risks.
• Support: Included as standard with clear SLA agreements.
• Updates: Free and scheduled.
• Scalability: Designed to grow with your business.
• Flexibility: Options are available when needed.

Customized ERP system:

• Implementation: Slower, more expensive and with higher project risk.
• Support: Varies depending on the provider.
• Updates: Often require separate projects and extra costs.
• Scalability: Depends on specific customizations.
• Flexibility: May be limited and not always compatible with options.

Implementation time and cost

In our experience, companies with a clear framework and standardized processes are the most successful at staying on schedule and on budget. A standardized ERP system offers a fixed cost model and a predictable implementation, making it easier to budget and stay on schedule. When functionality and technical requirements are defined in advance, the risk of unexpected elements is reduced and the project can be delivered on time.

For more complex businesses with many specialized solutions, however, we see a different reality. A customized ERP project often requires more development, testing and internal buy-in, leading to higher costs and longer implementation time. It may be the right path if business processes really require it, but many underestimate the total effort required to get there.

However we recognize the problems associated with heavily customized ERP solutions. By the time we reach out to a customer, they have often already made an ERP attempt in the past, where implementation has dragged on, the integration work has taken over and the expected value has not materialized.

Support

After implementation, it's all about stability and availability. An ERP system is at the center of your business, and when it stops, so does production. That's why access to fast, qualified support becomes crucial in the long run.

In our experience, this is where standardized systems really show their strength. When many companies use the same platform, the supplier can build up a deep knowledge base, procedures and resources for rapid troubleshooting. This means less downtime and a safer working day.

For companies working with their own, customized systems, we often see a different challenge. Support becomes more dependent on individual developers or external consultants, and each problem often requires a separate project. It works – but at a higher cost and with longer response times.

When something goes wrong with a system that thousands of businesses use, we can act immediately. When it comes to customized solutions, there is rarely a shortcut – each failure requires its own investigation.

System updates

As the manufacturing industry evolves, continuous updates become essential to keep operations efficient and competitive. A regularly updated ERP system provides access to new functionality, security enhancements and optimized performance, without disrupting operations.

Standardized ERP systems usually follow a fixed update schedule, allowing all users to access the latest features at the same time. Updates can be performed quickly, with minimal impact on daily operations. Critical errors are corrected through scheduled patches, and users do not have to plan their own technical efforts.

For companies with customized systems, the picture is often different. Each update must be tested against the unique environment, increasing the risk of conflicts and delays. In many cases, updates are postponed - until the system eventually becomes outdated and limits the company's development.

We often see companies stuck with older versions for years because the update needs to be done manually. This means that they miss out on new functionality that is already available.

Scalability and flexibility

Standardized ERP systems are built for growth, not the current state of the business. The architecture is designed to handle increasing transaction volumes, new users and more production units without requiring new development. For companies growing through new investments or mergers, this means shorter start-up times and fewer technical barriers.

In custom systems, the design determines how far you can grow. If growth is not planned for from the start, new code and development is often required, which costs time and risks slowing down operations.

Standard for manufacturing. Adapted to reality.

Monitor ERP offers a solid foundation with the ability to quickly integrate local tools for finance, human resources and logistics without losing the standardized strength of the system.

Contact us to find out more

Risk mitigation and compliance

Today, businesses are increasingly grappling with data breaches and data security. At Monitor, we believe a cloud solution is the right path for the vast majority of growing businesses. Because they are used by thousands of companies across a range of industries, they are continuously tested against real-world scenarios. The provider is responsible for operations, security and regular updates to keep up with new requirements – from tax changes and emissions reporting to certifications and data protection. This reduces both the risk of downtime and the risk of falling outside the law.

For companies with their own, customized systems, the responsibility is more likely to be internal. This requires both IT expertise and procedures for patching, security and monitoring. For some this is a strength – for others a risk. In the longer term, in-house management can be costly and difficult to keep up to date.

Get started with a standardized ERP system for the manufacturing industry

Do you want support in process mapping and guidance in the next steps towards a smooth ERP implementation?

We help you create structure, efficiency and sustainability through a proven standardized system, adapted for manufacturing companies.

Book a free consultation with us – for you or your project manager – and we will guide you through the process.