The verdict in three sentences
For a manufacturing SME under 20 users, a standard SaaS ERP (60-140 EUR/user/month) is the fastest entry point, but it forces its own processes on you and bills modules you will never use. Beyond 25 users, or when your shop-floor management (multi-level BOMs, work orders, light MES) breaks the standard mould, a custom build at 120-320k EUR pays off within 3 to 5 years thanks to avoided licences. The real trade-off is not the sticker price but the specificity of your processes and ownership of your code.
What a manufacturing ERP costs in 2026
The two models are not comparable at the same point: SaaS is a recurring cost that grows with headcount, while custom is an upfront investment followed by 15-18%/year application maintenance (TMA).
| Item | Standard SaaS ERP | Custom ERP |
|---|---|---|
| Licence / initial build | 60-140 EUR/user/month | 120,000-320,000 EUR one-off |
| Integration & configuration | 20,000-60,000 EUR | included in build |
| Annual maintenance | included (yearly hikes) | 18,000-58,000 EUR/yr (15-18%) |
| 5-year cost (25 users) | 210,000-390,000 EUR | 210,000-500,000 EUR |
| Unused modules billed | yes | no |
| Code ownership | no | yes |
| Go-live time | 2-4 months | 5-9 months |
SaaS wins on speed and initial cash; custom wins as soon as user count climbs and you refuse to pay for HR or CRM modules you do not need.
The business scope that justifies custom
A useful 2026 manufacturing ERP covers the full shop-floor chain. Here are the modules and their indicative budget weight in a custom project.
| Module | What it does | Order of magnitude (dev) |
|---|---|---|
| BOMs & routings | multi-level BOM, operation routings | 18,000-35,000 EUR |
| Work orders (WO) | launch, tracking, real-time progress | 22,000-45,000 EUR |
| MRP / requirements | automatic replenishment, -20% stockouts | 20,000-40,000 EUR |
| Light shop-floor MES | machine logging, scrap, OEE | 25,000-50,000 EUR |
| Lot / serial traceability | product recall, compliance | 15,000-30,000 EUR |
| Accounting + EDI integration | ledger export, key-account EDI orders | 18,000-40,000 EUR |
A realistic project combines 4 to 6 of these bricks. Lot/serial traceability and customer EDI are often the two points where standard ERPs stall, because large buyers (aerospace, food) impose their own formats.
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Mini case study
James, director of a precision engineering SME in Trafford Park, 28 users, was eyeing SAP Business One at 110 EUR/user/month, i.e. 36,960 EUR/year in licences, plus 75,000 EUR integration. Over 5 years: 259,800 EUR, with two modules never used. The Kolonell custom build was quoted at 185,000 EUR (BOMs, WO, MRP, serial traceability, EDI) + 30,000 EUR/year TMA, i.e. 305,000 EUR over 5 years. More expensive on paper, but MRP cut component stockouts from 12% to 2.4%, avoiding 9 line stoppages (est. 4,500 EUR each): 40,500 EUR saved in year one, and code he owns.
FAQ
Is a custom ERP really cheaper long term? Not always. Under 15 users, SaaS is unbeatable. Break-even sits around 25 users and 5 years, when cumulative licences exceed the development cost.
How long to deploy? Expect 5 to 9 months for a custom build covering 5 modules, versus 2 to 4 months for a configured SaaS. Custom demands precise upfront mapping of routings and BOMs.
Can we integrate shop-floor machines? Yes. A light MES pulls logs via OPC-UA or PLC API, at an indicative 25,000-50,000 EUR depending on connected stations.
What happens to my data if I switch vendor? With custom, you own the code and the PostgreSQL database. No vendor lock-in, unlike a SaaS where export stays partial.
Is maintenance mandatory? Strongly recommended. 15-18%/year covers fixes, regulatory changes and security. Without it, your ERP degrades within 18 months.
Let's scope your project. Tell us your work-order volumes, user count and customer EDI constraints, and we will price the exact scope. 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.
