The verdict in three sentences
For an industrial SME of 60 staff, a rented vertical ERP (~28,000 EUR/year) starts fast but constrains your MRP and lot traceability once they leave the standard. A custom ERP at 70,000-140,000 EUR absorbs your real manufacturing routings, connects to your machines/IoT and belongs to you. The tipping point comes when production and traceability become the core of the value.
Rented vertical ERP vs custom ERP over 3 years
The annual rent looks predictable, but it runs forever and caps the operation.
| Line item (2026 estimate) | Rented vertical ERP | Custom ERP |
|---|---|---|
| Licence + support, 36 months | ~84,000 EUR | 0 EUR |
| MRP customisation | 20,000 EUR | included |
| Machine/IoT connector | 12,000 EUR | included |
| Initial build | — | 70,000-140,000 EUR |
| Annual maintenance | in licence | 16% of build/yr |
| Total 3-year cost (avg) | ~116,000 EUR | ~110,000-180,000 EUR |
The scope that optimises production
Each module targets a production gain or a scrap reduction.
| Module | Key function | Quantified impact |
|---|---|---|
| MRP | Requirements calc, planning | -15 to -25% idle time |
| Work orders | Real-time shop-floor tracking | +10-15% throughput |
| Lot traceability | Genealogy, targeted recalls | compliance, no mass recalls |
| Machine/IoT connector | Counters, downtime feed | -8 to -12% scrap |
| Accounting/GDPR | Export, records register | compliance assured |
| Maintenance 16%/yr | Fixes, evolutions | continuity |
Mini case study
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Marc, operations director of a Dublin SME (60 staff, 2,800,000 EUR/year material cost), suffers ~5% scrap, or ~140,000 EUR/year. With lot traceability and the machine connector he brings it to 4.2%, saving about 22,000 EUR/year in material. MRP cuts idle time and gains ~8% throughput on one line, worth ~35,000 EUR/year. Against a 105,000 EUR build with 16% maintenance, combined payback lands in about 24 months.
FAQ
Won't a Sage X3 or Dolibarr do? For general management, yes. Once MRP, fine traceability and machine connection become critical, customisations cost 20,000 to 50,000 EUR and stay fragile at upgrades.
Can we connect our existing machines? Yes, via IoT/OPC-UA connectors that feed counters, rates and downtime, powering MRP and scrap calculation in real time.
What is the deployment time? Budget 18 to 28 weeks, in batches: accounting and purchasing, then production/MRP, then traceability and machine connectors.
Is lot traceability mandatory? Depending on your sector it is often required; at minimum it limits a recall to one precise lot instead of a whole run, sharply cutting incident cost.
What maintenance budget? Maintenance at 16%/yr, roughly 17,000 EUR for a 105,000 EUR build, covers fixes, evolutions and supervised hosting.
Let's scope your project. Describe your production lines, machines to connect and traceability requirements, and we frame a scope and budget between 70,000 and 140,000 EUR. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
