ERP & Industry Software

Migrating from SAP to a Custom ERP for Chennai Manufacturers

For Chennai manufacturers reviewing SAP costs: where a custom ERP fits, what must stay compatible with OEM customers, and a low-risk migration sequence.

Purushottam Kumar Suman
Purushottam Kumar Suman
Founder & CEO, Drema AI
6 min read
Engineers planning a system migration

Chennai's suppliers were early adopters of SAP, encouraged by their customers. Years later the picture is mixed: finance and purchasing run well, while the shop floor relies on bolt-on tools and spreadsheets, and each plant addition means more licences.

01

Where the money goes

Licences for every plant and roleIncluding occasional users
Annual maintenanceOn the full licence value
An internal SAP teamOr a partner on retainer
Bolt-onsSeparate tools for MES, quality and warehouse
UpgradesPeriodic and expensive
02

What must not break

EDI with customers, label formats, traceability and statutory reporting. These are interfaces and outputs, and a new system can reproduce them exactly.

Your customer sees EDI messages and labels, not your ERP. Keep those identical.

03

Sequence

1. Shop floor, quality and warehouseReplace the bolt-ons first
2. Planning and dispatchWith EDI tested per customer
3. Purchase and storesNext
4. FinanceAt year-end
5. DecommissionWith archived data
04

Gains

One system on the floorNo licence per userFaster changesAI on your dataLower yearly cost
05

Cost

A one-time cost replaces the annual bill. First-year AMC is free.

One-time
Development cost, agreed before work starts
1 year
Of AMC included free after go-live
Yours
Source code and data, with no per-user fee
Purushottam Kumar Suman
Written by
Purushottam Kumar Suman
Founder & CEO, Drema AI

Founder and CEO of Drema AI. Builds AI systems, SaaS platforms and industry software — and writes about what actually survives production.

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