ERP & Industry Software
Migrating from SAP to a Custom ERP for Mid-Sized Chemical Companies in Gujarat
For Gujarat chemical companies paying SAP licences and annual maintenance: when a custom ERP makes sense and how to migrate plant by plant.
A mid-sized chemical company with two or three plants and a few hundred employees often runs SAP implemented years ago by a partner who has since moved on. Finance uses it fully. Production enters the minimum. The yearly bill arrives regardless.
01
Adding up the recurring cost
Over ten years, maintenance alone can exceed what the licences cost.
Annual maintenanceA fixed percentage of licence value, every year
Additional usersEach new plant or department needs licences
Support partnerMonthly retainer or per-ticket charges
InfrastructureDatabase and servers sized for the product
Forced upgradesWhen older versions lose support
02
What a custom system does better here
Stage-wise batch tracking as you run itSolvent recovery in costingEffluent and waste recordsMobile entry in the plantReports without a consultant
03
Plant-by-plant migration
1. Begin with one plant's productionLeave finance on SAP initially
2. IntegratePost summarised entries to SAP finance during transition
3. ExtendStores, purchase and quality
4. Move financeAt a financial year boundary
5. Archive SAPKeep data readable; stop renewals
04
Risks to manage
Statutory reporting, auditor comfort and bank covenants. We involve your auditors early, document controls and run both systems through at least one quarter-end.
05
Commercials
A fixed development cost replaces the yearly bill. AMC is free for the first year.
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
