When it’s time to choose an ERP system, one of the first decisions you’ll face is how to deploy it—SaaS (cloud-based) or on-premise. Both have their strengths, but the right choice depends on your business model, infrastructure, and growth plans.
Here’s a clear breakdown of the pros and cons of each approach, so you can make an informed decision for your building materials operation.
SaaS ERP (Cloud-Based ERP)
Pros:
Lower upfront cost
No need to buy servers or maintain internal IT infrastructure. You pay a subscription fee, usually monthly or annually.
Faster deployment
Cloud ERPs can often be set up in weeks, not months, because the system is already hosted and maintained by the vendor.
Automatic updates
You get regular software updates, patches, and new features—without lifting a finger.
Remote access
Teams in the yard, on delivery routes, or working from satellite locations can access real-time data from any device with internet.
Scalability
Easily add new users, features, or locations as your business grows, with minimal disruption.
Cons:
Ongoing subscription fees
You’re paying for the service continuously. Over time, this can add up—especially with many users or modules.
Less control over customization
While SaaS ERPs are flexible, deep customizations may be limited by the vendor’s cloud environment.
Dependence on internet connectivity
If your connection drops, your team could lose access—especially critical for remote yards or delivery teams in low-coverage areas.
Data security concerns
Although most providers follow strict security standards, some companies are still cautious about having their data hosted externally.
On-Premise ERP
Pros:
Greater control
You own and manage the system. That means full control over data, customization, and how updates are handled.
Custom-built workflows
On-prem systems can often be deeply tailored to match your exact business processes.
No ongoing subscription fees
After the upfront cost, you avoid monthly/annual licensing charges—though there are still support and upgrade costs.
Internal data hosting
For companies that prefer to keep sensitive customer or pricing data in-house, this provides peace of mind.
Cons:
High upfront investment
You’ll need servers, IT staff, software licenses, and time to implement. It’s a bigger initial spend.
Longer implementation times
Custom setup and infrastructure can extend your go-live timeline.
Manual updates and maintenance
Your IT team is responsible for applying patches, resolving bugs, and managing security risks.
Limited mobility
Remote or field teams may find access more difficult unless you invest in additional tools or VPN setups.
Final Thought
If you’re a growing building materials supplier looking for fast deployment, lower IT overhead, and mobility for yard and delivery teams, SaaS ERP might be the right choice. If you have a strong internal IT team, strict data policies, or highly complex workflows, on-premise ERP could still be a solid fit.
Either way, the key is picking the model that supports how you operate—today and into the future.
