Custom Inventory System or Off-the-Shelf Software: How to Decide

Most businesses should start with standard inventory software. It is quick to set up, someone else maintains it, and it handles the common cases well. A custom system only makes sense when the way you work no longer fits the software, and the workarounds cost more than the fix.

This post gives you a way to tell which side of that line you are on.

Start with what you do differently

Write down how stock moves through your business, from purchase order to delivered sale. Mark every step where someone leaves the software to finish the job in a spreadsheet, an email or their head. Those marks are your real requirements. If there are few of them, standard software is probably fine. If they sit in the middle of your daily work, keep reading.

Signs standard software is still the right call

• You buy and sell in straightforward units from a small number of suppliers.
• Your pricing fits a price list or a few customer groups.
• You have one location, or simple transfers between locations.
• The software already connects to your store and accounting package.

Signs you have outgrown it

• Someone re-keys orders or stock counts between systems every day.
• Supplier stock, cost and catalogue data arrive in different formats and need cleaning by hand.
• Your pricing depends on customer, volume, supplier cost or contract terms that the software cannot express.
• Staff no longer trust the stock number, so they walk over and check the shelf.
• You pay for several add-ons that overlap and still do not talk to each other.

What a custom system really costs

The build is only part of it. A custom system also needs hosting, monitoring, backups and someone responsible for fixes and changes for as long as you run it. Compare that total with what you pay now, including subscriptions, add-ons and the staff hours spent on workarounds. Be honest about those hours, because they are usually the largest number and the one nobody tracks.

There is a middle option

You rarely have to replace everything. Keeping standard accounting and a standard store, then building only the piece that does not fit, is often the best answer. That piece might be a supplier data feed, a pricing engine or a purchasing screen. It costs less, carries less risk and leaves you with less to maintain.

Questions to ask any developer

• Who owns the code and the data?
• What happens if we stop working together?
• How do we get our data out?
• Which parts would you not build, and why?

A good answer to the last question is a healthy sign. Someone who wants to build everything is not weighing your costs.

Frequently asked questions

If you are unsure which side of the line you are on, book a call. We will look at your process and tell you plainly if standard software will do. See also our work for retailers and distributors.