Company: StoneCore Distributors
Industry: Building Materials – Brick, Block & Hardscape Products
Locations: 3 Warehouses, 1 Central Yard
Employees: 75
Previous System: Legacy accounting software + manual spreadsheets
New ERP: Industry-specific ERP designed for multi-location inventory and contractor pricing
📍 The Challenge: Hidden Costs in a “Low-Cost” ERP
StoneCore Distributors had been using a basic ERP system bundled with their accounting software. On paper, it seemed inexpensive. But over time, hidden costs began to pile up:
Add-on fees for each new user
Manual workarounds due to lack of real-time stock visibility
Frequent over-ordering due to outdated inventory counts
Missed contractor discounts due to pricing complexity
Leadership realized: the software might have been cheap, but the business cost was high.
🧮 The TCO Evaluation Process
Instead of just looking at monthly subscription fees, StoneCore’s leadership decided to dig deeper using a Total Cost of Ownership (TCO) framework. Here’s what they considered:
Software licensing
Implementation and configuration
Training and onboarding
Custom reports and workflows
Ongoing support and upgrades
Labor time spent on manual processes
Errors, delays, and stockouts
They compared 3 ERP vendors—including their current provider—on these real-world costs.
💡 The Discovery: “Cheaper” Wasn’t Really Cheaper
After running the numbers over a 3-year window, here’s what they found:
Their current system, while low-cost up front, led to $75,000+ in annual hidden labor costs (manual transfers, stock checks, data re-entry).
A general ERP with more features had high licensing fees but still lacked industry-specific capabilities.
The industry-focused ERP had a higher initial investment but included:
Mobile inventory tools for warehouse teams
Real-time inventory tracking across all locations
Custom contractor pricing logic
Faster order fulfillment tools
Over 3 years, this ERP had the lowest TCO when all business factors were considered.
🚀 The Results: Real Savings & Smarter Operations
Six months post-implementation, StoneCore saw clear returns:
20% faster order fulfillment due to automated stock sourcing across locations
Eliminated 15+ hours/week of manual stock updates
Reduced inventory errors by 90% with real-time mobile scanning
Improved cash flow by aligning purchasing to real-time demand
They also reported better morale among warehouse staff and sales reps who finally trusted the system’s data.
🎯 Key Takeaways
TCO goes beyond software costs. Factor in labor, accuracy, scalability, and customer service.
An industry-specific ERP may cost more upfront—but pays back faster.
Investing in the right tools leads to better decision-making, less waste, and stronger profits.
Final Thought:
StoneCore’s journey shows that evaluating Total Cost of Ownership isn’t just about saving money—it’s about spending smarter. When you choose an ERP system with a full understanding of long-term impact, you’re investing in operational clarity, efficiency, and growth.
