ERP systems might be the oldest type of software. Back to 1980-s the manufacturing companies started using ERPs to handle important business issues and avoid manual work. Nowadays the technology hasn't lost its efficiency and helps to automate key business operations like customer and finance management, HR operations, inventory management, and many other tasks.

In this article, we'll discuss why developing custom ERP software is an up-to-date idea in 2024 and share our case of automating business processes with the help of a custom ERP system.

What is enterprise resource planning software?

Enterprise resource planning software or ERP is a set of applications developed to centralize and streamline business processes across an organization. It serves as a hub for managing essential internal entities such as accounting, inventory, HR, supply chain, manufacturing, logistics, procurement, and all other entities essential for the effective functioning of your business. ERPs enable all departments in an organization to share data effectively and make data-driven decisions.

ERP software is designed to streamline and enhance your internal operations, rather than directly boost sales figures.

ERPs make communication between employees more effective by providing a single source of up-to-date information that can be used by all the departments. For instance, the inventory management system may contain data about the number of goods stored by the company, while managers from the sales department can check this info in the ERP system to find out how much they can offer to the customers.

ERP software use cases

Either small businesses or large enterprises can benefit from the integration of ERP software into their processes. They help departments communicate effectively and maintain a high level of customer service. ERP systems are mostly used in business domains like pharmaceuticals, manufacturing, retail, e-commerce, and healthcare.

However, any other large enterprises can use it as well to make their processes transparent for the top management and stay on top of their efficiency. To prove these facts, we have collected some stories of the large companies that implement the three most used ready-made ERPs in their workflow.

Starbucks and Oracle

In an interview, the leader of Starbucks revealed that this network of coffee shops uses Oracle ERP to manage its internal processes. The platform delivers real-time information such as operational reports, sales and revenue data, expense analytics, and stock management metrics. The company also uses ERP software to automate everyday processes such as supply chain management, procurement, and project management.

Oracle ERP is a modular software sold by SaaS model. The business owners can buy modules responsible for different operations one by one or all at once, as it is convenient for their budget. The Oracle ERP provides modules for financial management, procurement, risk management, manufacturing processes, customer relationships, and many others.

Amazon and SAP

As the leading e-commerce marketplace worldwide, Amazon leverages an SAP platform to fulfill its ERP requirements. SAP stands out as a top-tier ERP system designed to manage intricate operations, featuring a comprehensive suite of tools for overseeing procurement, determining logistical needs, managing financial reports, and streamlining the customer journey during the order fulfillment cycle.

ERP software is tailor-made to suit the specific needs of a business. In Amazon's scenario, the ERP system orchestrates a hybrid model of both third-party and direct order fulfillment, monitors inventory levels, triggers automatic restocking orders, and manages daily interactions with millions of customers and sales transactions.

Walmart and Microsoft Dynamic 365

Walmart, a multifaceted and expansive enterprise, necessitates an automated system to oversee its brick-and-mortar locations, discount centers, digital commerce operations, and smaller community-focused markets, in addition to a variety of brands. Its supply chain is extensive, involving thousands of vendors and suppliers, requiring managers to coordinate effectively to maintain optimal inventory levels on shelves while avoiding surplus stock that elevates operational costs.

To address these challenges, Walmart employs Microsoft Dynamics 365, a cloud-based enterprise management solution, to manage resources, track warehouse capacity, and seamlessly integrate with other software applications in use.

Key benefits of using custom ERP

Although the market is full of off-the-shelf ERP solutions, there are several benefits of getting your own one. Have a look at the list of advantages below:

Tailored fit

An ERP system designed specifically for your business and takes into account the features of your workflow and the unusual requirements of your business. All the peculiarities can be taken into account and implemented in your app.

Let us make an example. Imagine that you are an owner of an e-commerce company selling handmade goods all over the world but with a significant focus on local traditions and materials. Although you may use a ready-made system to automate operations, a custom solution might be even better for this business.

However, in the process of ERP software development, all these specifics can be taken into account and be used to create a system where products can be tracked not just by quantity but also by artisan, material origin, and cultural significance, aligning perfectly with the company's mission and operational requirements.

Exclusive ownership

The ERP software development eliminates dependence on third-party software providers. In case the bug occurs in the readymade ERP, you will have to wait until it is fixed by the provider. If you have your own ERP, you will be able to fix it with the help of your in-house IT specialist.

Also, you may use a ready-made ERP for many years, and its providers may decide to shut it down one day. In this case, you will have a hard time transferring all the data of your company to a new service or server. With your own ERP, you will be the only owner of the data and won't depend on the decisions of your software provider.

High return on investment

The statistics say that the ROI of ERP software implementation is 52%, which means that for $1 of investment, you will receive $1.25. The ERP software development pays off in two or three years after its launch.

Implementing custom ERP software is also cost-saving in the long run. You will have to pay for a subscription for a third-party ERP and it will only grow if you decide to switch to more modules. This will result in higher operating costs. Although the development of custom ERP is also quite expensive, it will soon pay back because it reduces your operating expenses.

Security

With custom ERP, you also store all the essential data of your company on your server. You and your IT services provider will also be the only owners of the application's source code, which makes it less vulnerable to cyberattacks compared to off-the-shelf solutions.

In summary, choosing a custom ERP system provides substantial benefits for businesses looking for solutions that closely align with their unique processes, ambitions, and market positioning. The tailored approach can significantly boost operational efficiency, scalability, and competitive edge. Ultimately, a custom ERP is a strategic asset designed to drive long-term success by perfectly matching your business's specific needs.

By the way, it's known that accounting is one of the primary fields that companies seek to automate. Our team has recently created a concept for an accounting web app that could nicely fit an accounting module in ERP software.

ERP software development as a business idea

You can develop a custom ERP system for your business or develop an off-the-shelf ERP to sell by subscription leveraging a SaaS business model. There are several reasons why this business idea will be viable in the upcoming years:

• Rapid market growth — the enterprise resource planning software market is expected to continue being a rapidly growing field. According to research by Statista, the annual growth of revenue rate of 4.48% will result in market volume reaching $62.36 by 2028.
• High need for customization — according to Statista's analyst, a key trend in this industry is the growing demand for customization. Companies are seeking platforms that can be customized to fit their unique operations and objectives. This shift has fueled a surge in the popularity of cloud-based ERP systems, valued for their adaptability and scalability. Moreover, there's a strong preference for user-friendly software that integrates smoothly with existing systems, enhancing operational cohesiveness.
• Room for smaller players — in the USA the market is dominated by well-known ERP providers such as Oracle, SAP, and Microsoft, the ones that we have mentioned earlier. However, the demand for industry-specific ERPs and smaller players still grows. As far as there is room for new ERPs on the market, you can think through and launch your ideas.
• Macroeconomic factors — a key growth catalyst is businesses' escalating need to enhance their operational efficiency and competitiveness. The push for digital transformation and the rising adoption of cloud and mobile technologies have spurred demand for ERP software that can deliver innovative solutions aligned with the changing needs of customers.

To develop a solution that is to be sold by subscription, you may need an in-house or outsourced IT provider. Let us remind you of the Slack case. Its owner has decided to create a business messenger app and decided to contact an outsourced team of developers. The team helped the entrepreneur to implement his idea before his rivals, which made Slack one of the leading messaging apps.

Just like Slack CEO, you may have a bright business idea and you may start bringing it to reality the moment you have it. If you need software to make it real, you will need to find an IT agency that will help you develop an application. We'd love to make a hint that our Ronas IT team can help you with the part connected to software development.

Ronas IT ERP software development case study

Our team has already helped several enterprises develop and implement custom ERPs. Today we'd love to share our experience of developing this type of software for the network of hair salons specializing in vivid hair coloring.

Customer

The owner of the hair salon network has contacted us with the challenging task of developing an ERP for the growing business. During the last few years, the company has experienced a sharp growth, and the number of its branches reached 7. As a result, it got harder for the owner to monitor the work in each branch. To make the process more transparent, our client decided to develop an ERP to counter the most acute issues.

Discovery phase

Our manager contacted the owner of the hair salon network and asked about the key problems that the company is currently facing. As a result, the manager together with our customer formed the tasks we needed to fulfill.

• Inconvenient inventory management — the business used to track their inventory fulfillment in spreadsheets. However, as the brand grew, it became inefficient. The hair salon needed to track the materials for hair dying in different colors and brands. There was a need to track the availability of each hair-dying product by gram because otherwise, it was impossible to understand if there was enough product for the next coloring procedure. That's why our task was to create a custom inventory module that would take the product features into account.
• Manual accounting — previously financial management was held in desktop accounting software. Except for making reports the business owner wanted a system that would help to count operating costs including the cost of sales. As a result, the employees needed to input the financial data manually in two different systems. Our task was to create a single block with financial dashboards and report-forming features.
• Customer reviews — it was hard for the owner to track custom reviews in different social networks and answer them or work with negative ones. That's why there was a need to integrate the application with social networks and review aggregators for greater convenience.
• Shift scheduling — our task was to create a calendar for convenient scheduling and a feature for asking for vacation. Thus, the branch managers didn't need to text their employees manually, and then announce this info to others, they could just keep track of all the scheduling in one calendar.

Our task was to create a web application with features for the business owner and a mobile version for employees, who needed to have access to all essential corporate information throughout the entire workday.

As a result of the discovery phase, our manager created the project breakdown by features and estimated time and cost of the design phase.

Custom ERP software features

Below we'd love to discuss in-app solutions that we offered to resolve the issues that the hair salon faced.

Custom inventory management

Product catalog

It was decided to add a list of hair products and mark them by brand, color, and type also mentioning attributes like weight, cost of each product, and stock levels.

Real-time stock tracking

Automatic updates on stock levels by gram after each coloring procedure, ensuring accurate inventory levels.

Inventory tracking dashboard

A real-time display of inventory levels, highlighting critical stock information and alerts for low stocks or anticipated shortages.

Accounting integration

Financial dashboard

The dashboard displays real-time data on metrics like revenue, costs, and profitability.

Cost of sales calculation

Automated calculations of the cost of sales, integrating inventory usage directly with financial reports.

Expense tracking

A module to input and categorize operational expenses, including utilities, salaries, and product purchases.

Report generation

The ERP system provides a repository of templates and automatically generated reports. It provides reports on financial health, sales trends, and cost management, exportable for further analysis and tax calculation.

Scheduling and HR management

Interactive calendar

In the process of ERP software development, we have implemented an interactive calendar where users can schedule shifts and personalized appointments, while the business owner can track employee availability.

Vacation requesting feature

The employees can order vacations and sick leaves using a special form where they fill in all the necessary info about the days off they need. The manager can receive filled forms, approve vacations, and change the schedule.

Shift Swap

A feature that allows employees to request and approve shift swaps among themselves, subject to manager approval.

Customer reviews integration

Social media and review aggregator

This is a screen where reviews from all the social media platforms are aggregated. The managers can track them in real time, answer them, and deal with dissatisfied customers.

Rating analysis

Automated analysis of customer ratings to gauge overall customer satisfaction and identify areas for improvement.

Review response management

A feature to respond to reviews directly from the app, fostering better customer engagement and service recovery.

Other features important for ERP software development

Access management

ERP systems usually display a lot of confidential corporate data, and most of the business owners don't want to lose it or give it to their rivals. That's why it's really important for all the corporate apps to manage what users can access each app module. With this idea in mind, we implemented role-based access control allowing for customized permissions for different users (e.g., managers, front-desk staff, stylists), ensuring secure access to relevant parts of the application.

Notifications center

A central hub for all system notifications, including stock alerts, review notifications, vacation approvals, and financial reminders, ensuring no critical information is missed.

Data analytics and insights

Advanced analytics capabilities across all modules, providing actionable insights and helping in informed decision-making. For instance, with data analytics, the entrepreneur can track financial performance, customer satisfaction over time, inventory fulfillment, and staff allocation and analyze many other metrics.

Mobile accessibility

A mobile-friendly interface ensuring access to the ERP system on-the-go, is ideal for managing operations, responding to reviews, or checking inventory levels from any location. At the same time, employees can share information about the amounts of products they use for the procedures quickly and hassle-free.

UI/UX design

When the list of app features was refined by our manager and approved by the customer, the design team started building the interface of the app.

Prior to working with UI or developing a fully-fledged interface, our designers create a mind map where they reflect all the features from the breakdown to make sure that they all are grouped logically and no feature is missed.

After that wireframes and a prototype were created to test the interface with real employees and the salon owner to find out if the interface is convenient for them. Wireframes are the schemes of the future screens, while a prototype is a clickable mockup that is created to reflect the most complicated transitions between screens and app flows.

As for the UI design, together with the customer, we have decided not to pay attention to creating a sophisticated visual look. That's why we limited the color choice to a strict white-and-black scheme, a single blue accent, and a clear readable font that looks equally good on PC and mobile devices.

Development

Our team's task was to develop web and mobile apps as a part of this ERP system. To create them, we have chosen React for the frontend, Laravel for the backend, and React Native for mobile app development as the core of the tech stack.

We chose Laravel because it comes with many readymade features like authentication, routing, sessions, and caching, which accelerates the development process. Laravel is also compatible with a wide range of databases and it provides robust security features that protect web products from the most widespread failures such as SQL injection, cross-site request forgery, and cross-site scripting. In ERP systems data protection is of utmost importance, and Laravel helps to enhance it.

As for the mobile development, it was decided to use React Native to launch apps for hair salon employees. This framework was especially convenient for ERP software development since the employees use both iOS and Android devices. React Native allowed us to develop apps for both operating systems using a single codebase in JavaScript. This significantly sped up the development and saved the resources of the customer.

Integrations

Except for the core tech stack, we integrated the ERP software with several third-party services. The integration of third-party services or usage of APIs speeds up the development, since you don't need to develop all the functionality from scratch and may just use pre-made features. Here are some examples of APIs that we used during ERP software development.

Google code scanner

The integration of the Google Code Scanner API into the ERP system's inventory management module significantly streamlined operations for the network of hair salons. This feature enabled salon employees to swiftly add or update inventory by scanning barcodes or QR codes on product packaging, automatically populating product details in the catalog, and updating stock levels in real time. The ability to track the usage of hair-dying materials accurately through barcode scanning minimized manual errors and enhanced operational efficiency by ensuring precise inventory control.

Stripe API

The Stripe API integration within the ERP's financial management module streamlined payment processing, enhancing transaction efficiency in the salon network. It facilitated secure credit card transactions, enabled subscription-based billing, and supported direct product purchases through the app. The automation of financial reconciliation ensured accurate reflection of sales revenue in real-time reports. By reducing administrative tasks and offering secure, swift payment options, the Stripe API significantly improved the customer payment experience and financial management for the salons.

Social media APIs

By integrating various Social Media APIs into the ERP system's customer engagement module, salons could centrally manage and respond to customer reviews and feedback across platforms. This capacity for direct interaction and automated sentiment analysis streamlined reputation management and customer service, informing better business strategies based on comprehensive insight into customer feedback trends.

Google calendar API

The incorporation of the Google Calendar API into the ERP's scheduling modules allowed for seamless appointment bookings, employee shift planning, and leave management, all synced in real time with Google Calendar. Automated reminders reduced no-shows, and the system's efficiency in scheduling ensured smooth operational flow, enhancing both staff and customer experiences with the salon network.

Release

We usually help not only with the development but also lead our customers through the release stage. In this case, we have helped to release iOS and Android apps to app stores, this process took 2 weeks.

As for the web apps, we have deployed the app in a development environment, where our customer could check the results of our work and our developer was working with the app. The production environment was also deployed, the prod environment is where the users can access and interact with the app.

Results

As a result, our team has managed to lead the salon owner through all the production stages within just 5,5 months. After this period, our customer received a fully-functioning business tool. Most of the company's tasks were solved, and the salon's team started to train using the created ERP system. The customer was so satisfied with our work that decided to stay with us for post-release maintenance.

By the way, we can support all the created applications by subscription. Within this service, we keep maintaining the environments we deploy, fix bugs if they occur, or enhance the application with new features as your business grows.

To sum up

According to research forecasts, the ERP technology market is only set to grow in the near future, as these technologies help to automate operations for both large enterprises and small businesses with a staff of up to 20 people.

Only 3% of businesses use fully ready-made software solutions; the rest require some level of customization. Based on this fact, the custom development of such solutions is exactly what businesses need, and the example of the hair salon illustrates this perfectly.

By the way, our team can lead you through the entire path of ERP software development, just like we did with the hair salon's ERP. Contact us to discuss your UI/UX design and software ideas.