Choosing between a SaaS (cloud-based) ERP and an on-premise ERP isn’t just a technical decision—it shapes how your business operates, scales, and adapts over time. For material suppliers managing high-volume orders, yard operations, and job-site deliveries, the impact of this choice is felt in every department.
Here’s how two suppliers took different ERP paths—and what happened next.
Company A: SaaS ERP Adoption for Multi-Location Flexibility
Business Type:
Lumber and building supplies distributor with five locations and a growing delivery fleet.
Why They Chose SaaS ERP:
They needed flexibility to expand, and didn’t want the burden of maintaining servers or in-house IT. A cloud-based ERP with mobile access was appealing for their remote yards and on-the-go teams.
Pros Realized:
Fast deployment: System went live in under 6 months
Remote access: Yard managers, sales reps, and delivery staff used mobile ERP apps daily
Automatic updates: No downtime or internal IT required for software upgrades
Lower upfront cost: Subscription pricing made budgeting predictable
Cons Experienced:
Ongoing subscription fees: Over time, monthly costs added up, especially with user growth
Limited customization: Some workflows had to adapt to the platform’s structure
Internet dependency: Occasional slowdowns in rural yard locations during bad weather
End Result:
High user adoption and increased efficiency across locations, but the team had to be flexible and work within the boundaries of the software. Ideal for their distributed, mobile-heavy operations.
Company B: On-Premise ERP for Full Control and Customization
Business Type:
Concrete and bulk materials supplier with a centralized yard and on-site dispatch.
Why They Chose On-Premise ERP:
Their operation was highly specialized—requiring custom load tickets, dispatch logic, and tight integration with heavy equipment sensors and scales. They wanted full control of data and infrastructure.
Pros Realized:
Deep customization: Every workflow—from batching to billing—was tailored to their exact needs
No recurring license fees: After the initial investment, ongoing costs were low
Data security control: All business data was managed in-house, with no external hosting
Cons Experienced:
Longer implementation time: Took 14 months to fully design, test, and roll out
Higher upfront cost: Infrastructure, servers, and development added up fast
Maintenance burden: Internal IT had to manage updates, backups, and downtime prevention
End Result:
A powerful system that did exactly what they needed—but came with a steeper learning curve and more internal overhead. Best for companies with stable processes and strong IT support.
Key Takeaways: SaaS vs On-Premise for Distributors
SaaS ERPOn-Premise ERP
Fast setup, lower upfront costHigher control, higher initial investment
Accessible anywhere, ideal for mobile teamsBest for custom workflows and internal infrastructure
Easier to scale and updateLong-term cost savings after setup
Internet-reliantBetter for businesses with in-house IT teams
Final Word
The right ERP deployment model depends on how your business runs day to day. If your team is mobile, your operations are spread across locations, or you want minimal IT overhead, SaaS ERP is often the way to go. If you have highly customized processes, in-house tech talent, and want full control, on-premise ERP may be worth the investment.
Make the decision based on flexibility, total cost of ownership, and your internal capabilities—not just the sales pitch.
