What does a merchandise management system for SMEs cost?

Managing the flow of goods is an important task for companies of all sizes. Both small and medium-sized companies and large corporations need a specific solution - the merchandise management system to support and map purchasing and sales, incoming and outgoing goods and warehouse management.

Depending on the provider, the cost of an ERP system can vary. This type of software can be customized according to the company's specific requirements, which further increases the price. You can find detailed explanations regarding the costs of ERP systems in our article.

Cost factors of WaWi system

Dhe question of price can be answered in different ways. Prices are calculated based on the range of functions and the type of solution. You should either pay several thousand euros for the purchase of WWS or 50-300 euros per user per month. Individual customizations and support are not taken into account. Let's take a look at all the points that influence the cost of a merchandise management system.

Types of merchandise management systems

WWS can be divided into different categories, whereby various aspects are taken into account. There are different types of ERP systems depending on the range of functions, operating model, type of development and industry focus.

Open, closed and integrated ERP systems

• Closed solutions can cover the most important areas of the company (purchasing, sales, warehouse).
• Open ERP systems cover at least one core area with the help of a third-party system (e.g. by connecting with a connector).
• Integrated ERP systems contain all core modules, have connectors to other external systems and enable integration.

Cloud-based and on-premise solutions

• Cloud merchandise management systems are quickly ready for use, easily scalable and compatible with web-based third-party systems.

  • No own server required
  • No internal IT team required for maintenance and updates
  • Monthly fee for use
  • The external service provider is responsible for data security and maintenanceThe external service provider is responsible for data security and maintenance

• On-premise merchandise management systems require high investments in hardware and software.

  • Own IT team required for maintenance
  • High flexibility and control over data
  • Access also possible without an Internet connection
  • Companies themselves bear responsibility for data security

Standard, industry and individual software

• Standard software is offered for a broad target group and is flexible with multiple functions thanks to its modular structure.
• Industry software meets the requirements of a specific industry, has a thin distribution network and contains best practices.
• Individual software allows a customized architecture, but is expensive and takes a long time to develop.

Industry-neutral and industry-specific WWS

• Industry-neutral solutions can be used for different industries, but require customization.
• Goods procurement (supplier management, scheduling, purchasing, goods receipt, incoming invoice verification);
• Warehouse management (storage, inventory management, stock removal, internal booking, replenishment, stocktaking);
• Goods sales (customer management, marketing, quotations, sales, order management, order picking, shipping, invoicing, returns management).

WWS can also contain additional function modules and interfaces. The merchandise management system then costs even more. The additional functions offer the company more flexibility and increase efficiency. The performance of the add-on modules (CRM, dropshipping, accounting, finance/human resources) extends the functionality of the software. It is possible to add planning and control functions for manufacturing companies. In this case, WaWi is often confused with ERP. More time and effort is then required for its development and maintenance, which increases the price of the solution. At the end of the day, you get a correct, highly suitable software from which your company will benefit.

Costs for implementation and customization

The merchandise management system must always be introduced by a specialist and the data migrated. This is an important and time-consuming process, as the master data must be checked and cleansed before migration. The data previously maintained offline must be incorporated into the system. This saves both time and money.

Another cost issue concerns customizations. If you have selected WWS and it fully satisfies your business functionally, nothing needs to be done. In reality, however, this is not always the case. Over time, requirements grow and new functions have to be implemented, resulting in increasing costs for the ERP system. It is therefore advisable to analyze the business objectives in advance. This will help to select the most suitable ERP system and eliminate unforeseen expenses.

Additional costs and future outlook

WWS should be able to implement all end-to-end processes across its own boundaries. This often requires features from the ERP area as well as various interfaces. Thanks to customizations and integrations with other systems, the ERP system can handle different business processes. This incurs additional costs, which on the other hand bring benefits. This allows the company to avoid unwanted losses and significantly increase turnover.

Hidden costs

Interfaces are very important for connecting ERP systems with other software solutions. A good ERP system should be integrated with key applications. This enables a seamless flow of data between systems, which improves performance efficiency and reduces the likelihood of errors. Connecting the ERP system to other applications requires experts and time. That's where you run into new issues again.

As the company grows or customer requirements increase, specific adaptations and expansions should be considered. They naturally have an impact on the cost of the ERP system, which can vary. When it comes to complex, extensive changes, you should spend more. Simpler extensions cost less. The price models and cost rates are different for different providers. This must also be taken into account. License fees for new modules and functions are charged in any case.

Long-term perspective

Before implementing the ERP system in your company, all aspects should be considered. It is necessary to compare the costs incurred and the benefits. Then the return on investment (ROI) must be considered. The following points should be analyzed:

• Reduction in labor costs as a result of process optimization and automation;
• Possibility of fast order processing in large quantities;
• Smooth order processing and error-free stock management;
• Improved customer experience through accurate inventory information and fast delivery times;
• Relief for company employees and automation of routine tasks;
• Fast decision making.

Although the use of an ERP system entails high costs, it is definitely worthwhile. Companies are able to increase their own productivity and efficiency. Orders are processed quickly and without errors. This means you can get more done and therefore earn more. The company has great potential for growth and needs new investments for scaling.