Why ERPs fail small factories, and what to do instead

The real cost is not the licence

When an owner looks at an ERP, the first number is the licence. It is usually charged for every user. That is not the number that hurts.

Setup takes months. A partner spends 6 to 12 months fitting the system to your business. During that time your team still has to run the factory.

Most of it goes unused. ERPs are sold as bundles of modules. Most small factories use two or three of them.

Data is typed twice. The work still happens on the floor, on paper or in a chat. Someone then types it into the system. The system is only as good as that typing.

Every change is a new quote. If the way you work changes, the screens have to change. Each change is paid for.

Yearly fees and lock-in. A support fee comes every year, and your data sits in the system's own format.

A business runs on people

None of this is a failure of the people who buy ERPs. It comes from a simple mismatch. An ERP expects the business to fit fixed screens and forms. A small factory does not work that way.

Customers get credit because of trust, not because of a policy. The best rate for a material is in the owner's head. A delivery is promised on a phone call. Stock is written in a register, attendance on paper, and dispatch on a slip.

So the system is set up, and then the real work carries on around it, in WhatsApp, in Tally and in a notebook. The owner goes back to what works.

Why owners return to what they know

There is nothing wrong with WhatsApp, Tally and a notebook. They are quick, everyone knows them, and they cost almost nothing. The problem is the follow-up. A payment reminder waits for the owner to have time. A reorder is missed when the owner is away.

That is the gap we want to fill. It is not a new system for your team to learn. It is help with the follow-up on top of what you already use.

The other way round

lamp is built the other way round. Instead of making your business fit the software, it learns how your business works.

• It starts from what you have: Tally, an ERP, an Excel sheet, or photos of bills and registers.
• Connections are read-only, so your records stay exactly as they are.
• Your team keeps using WhatsApp, with a photo, a voice note or a text.
• Nothing goes out without your OK.

You can see the full comparison of costs on the pricing page, and read how it works in Introducing lamp.

Where it is still early

lamp is not a full ERP. It does not replace the system your accountant uses for books and returns. It reads from it and does the follow-up.

It is invite only. We bring in a few businesses in each batch. The next batch starts in November.

It works best one area at a time. If you try to switch on everything at once, you will meet the same problem that ERPs have. Pick one area first. How to pick yours.