The verdict in three sentences
For a wholesale distributor, a vertical module at 35-70 EUR/user/month is enough when flows are standard and user count is limited. Once you pass 15-20 users or need specific replenishment and supplier-EDI rules, a custom build at 40,000-70,000 EUR pays off over 3 years. The real gain shows in working capital: 15% less tied-up stock frees more cash than the software costs.
The two cost models in 2026
Distribution inventory software covers multi-warehouse, replenishment forecasting, cycle counts, ERP/accounting integration and supplier EDI. Let's compare the two paths.
| Item | Vertical module | Custom build |
|---|---|---|
| Entry cost | Low (setup ~2,000 EUR) | 40,000-70,000 EUR |
| Monthly cost (20 users) | 700-1,400 EUR | 15% annual maintenance of build |
| Time to go live | 4-8 weeks | 12-18 weeks |
| Replenishment forecasting | Standard | Tailored (seasonality) |
| Supplier EDI | Connector-dependent | Integrated |
| GDPR hosting | Variable | Scaleway (EU) |
| Code ownership | No | Yes |
The vertical bills per user: past 20 accounts the bill climbs fast and catches up with a build.
3-year TCO comparison (20 users)
Median assumption: vertical at 50 EUR/user/month, custom at 55,000 EUR + 15% maintenance.
| Year | Vertical module | Custom build |
|---|---|---|
| Setup / build | 2,000 EUR | 55,000 EUR |
| Year 1 | 12,000 EUR | 8,250 EUR (maint.) |
| Year 2 | 12,000 EUR | 8,250 EUR |
| Year 3 | 12,000 EUR | 8,250 EUR |
| 3-year TCO | 38,000 EUR | 79,750 EUR |
| Asset owned | None | Proprietary software |
At 20 users the vertical stays 41,750 EUR cheaper over 3 years: custom is justified only by strong business rules or a larger user base. At 40 users the gap flips sharply.
Working-capital and operational gains
ROI comes not from the license but from freed cash and recovered hours.
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| Lever | Estimated 2026 gain | Annual impact (indicative) |
|---|---|---|
| Fewer stockouts | -20% | Sales preserved |
| Tied-up stock | -15% | ~45,000 EUR freed WC (on 300,000 EUR) |
| Cycle counts | 8 hours/week | ~14,000 EUR/year (time) |
| EDI reliability | -80% entry errors | Fewer supplier disputes |
| Forecasting | +12% service level | Customer retention |
Mini case study
Wei, supply lead at a wholesale distributor in Singapore, runs 2 warehouses and 300,000 EUR of average stock. Occasional stockouts cost sales and cycle counts take 8 hours/week. He picks custom software at 55,000 EUR + 8,250 EUR annual maintenance.
With 15% less tied-up stock, he frees ~45,000 EUR of working capital (immediate cash). Adding the 8 hours/week of counts (~14,000 EUR/year) and sales preserved by 20% fewer stockouts, annual operational gains exceed ~30,000 EUR. On the 63,250 EUR net first-year outlay, break-even lands around 22 months, excluding the immediate cash effect of freed working capital.
FAQ
How much to equip 20 users on a vertical? Budget 700 to 1,400 EUR/month, i.e. 12,000 EUR/year at 50 EUR/user, plus a setup of about 2,000 EUR.
Is custom justified here? Only past 20 users or with specific replenishment and EDI rules; below that, the vertical stays 41,750 EUR cheaper over 3 years.
Is hosting GDPR-compliant? Yes: we host on Scaleway (EU), with encryption and backups, compliant for your supplier and customer data.
What is the real stock gain? Expect -15% tied-up stock and -20% stockouts: on 300,000 EUR of stock, that frees roughly 45,000 EUR of cash.
How long to deploy? A vertical takes 4 to 8 weeks; a custom build 12 to 18 weeks, including supplier EDI and data migration.
Let's scope your project. Tell us your number of warehouses, users and EDI/ERP connectors, with an indicative budget, and we'll frame the most cost-effective inventory solution. 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.
