Detailed Comparison Between Project-Based ERP and Traditional ERP

Traditional Vs. Project based ERP

Most of the businessmen in Market think that ERP is dead. But it is not true. ERP software development companies are continuously adding new features and functions as per the business need. It might possible one ERP fails to suit your business but another ERP can best fit in your business. For example, many businesses do not find traditional ERP effective then they move towards Custom ERP software development or you can say project based ERP.

Project-based ERP system is a new concept to enterprise software with the added functionality of project management features and processes. Project-based ERP provides more detailed data of business processes then traditional ERP does. Project-based ERP is more suitable to project-based construction and manufacturing company.


Traditional ERP Softwares majorly focus on the Accounts and Manufacturing department while project-based ERP solution provides more effective solutions for project-based companies. Traditional ERP systems are more suitable to business where processes are much more simple. But companies with many departments, complex processes and moving data, traditional ERP cannot manage. To simplify these complex processes business should acquire custom ERP software development.

Before the rise of the ERP system, companies were using spreadsheets and file documents to manage the records and data. To meet the deadlines and release the milestones this was not adequate. Project-based ERP solutions provide a more convenient way to handle different processes in a single system. Custom ERP solutions also enable users to track metrics like labor costs, customer information, inventory management, turnover, payroll and many more.

Custom ERP system development company offers individual modules and role-based modules focused on one specific aspect of your business process. So the employee can see only those processes and data which are relevant to him. Modular ERP solutions enable companies to get exactly as much insight into processes as they would need.

Let’s have look for which department Custom ERP solutions can be helpful.
  • Account Management

This module of the ERP solution helps the user to see the financial stats at the project level. This tool allows your accounting department to record expenses and revenue associated with the different projects. This makes your financial reports more accurate and useful. Project-based ERP helps to monitor your business’s financial health.

  • Human Resource Management

This tool of ERP helps in recruiting, payrolls, leave management, time tracking and attendance. HRM helps to manage the history of the employee but when this module incorporated with the ERP solution it can show larger trends like charts and graphs in human resources. This can also aid the project managers to designate workloads and to decide the timeline of the project. It can prevent your business from taking the overload of projects when resources are not available.

  • Supply Chain Management

To manage the supply chain, project-based ERP provides a more convenient way. Rather than only focusing on production this too also focuses on supply chain management through more understanding of product development lifecycle. Transferring data and communication through a single channel prevents the miscommunication and data loss. With the help of tracking tools like barcodes, RFID tags and serial numbers user can manage inventory at every stage of the supply chain. This also helps in resource management. Real-time tracking can provide analysis and forecasts.

  • Customer Relationship Management

For any company customer relationship is essential. CRM solution supplies user customer information and history. This includes past conversations, purchase history and customer contact information. Live chat support enabling customers to communicate with your team directly. CRM portals allow the team to manage customer related issues and inquiries in a more convenient way. With the integration of marketing campaigns and social media, the user can track the potential customer and also it can generate the lead.

  • Project Management
    This tool is very essential in project-based companies. With the visual charts and reports, project manager can decide milestones, timelines and resource management. Project management tools can help to manage invoices, billing, proposals and contracts.
Benefits of Custom made ERP Solutions
  • It can be updated whenever it is needed. Because you have full control over it.
  • The single system to manage overall business.
  • Improve productivity through analyzing each department.
  • Less maintenance needed.
  • With the web-based custom ERP solution, you can access it from anywhere, anytime.
  • Not much hardware configuration needed.
  • Traditional ERP has many hidden costs like hardware cost, customization costs, training costs, support costs, license cost while custom made solution has only one cost i.e development cost.

Kanhasoft is the leading ERP solution development firm in India and USA. You can contact us to find the right solution for your business. Custom-made ERP solution retrieves information from the data and puts it into a centralized system where it can be processed as a whole. So each department productivity can be increased through simplifying the processes. Thus Custom ERP solutions boost up business quickly.