The ERP Trap for Indian Distributors
Every year, hundreds of Indian distributors invest in generic ERP systems hoping to modernise their operations. The pitch is compelling: one system for everything. The reality is painful.
A typical SAP Business One implementation for a distributor takes 8-12 months and costs ₹50-80 lakh when you include software licenses, implementation consultants, customisation, training, and data migration. Even after this investment, the distributor discovers that SAP does not understand Indian distribution.
There is no beat planning module. No crate tracking. The scheme engine cannot handle Indian FMCG promotions (buy-2-get-1 with slab-based cashback). Route optimization requires a third-party add-on costing another ₹10 lakh. The mobile app is clunky and the salesmen refuse to use it.
Within a year, the distributor is back to using WhatsApp for orders, Excel for route planning, and manual registers for crate tracking — with an expensive ERP handling only the accounting.
