When evaluating ERP systems for your distribution business, “What’s the ROI?” is always one of the first questions asked—and rightfully so. But there’s a catch: most ROI timelines look great on paper, and many of the hidden costs behind ERP adoption are left out of the conversation.
If you’re in the building materials distribution space, understanding the real costs—not just the software price tag—is critical for making a smart, sustainable ERP decision.
Here’s where the hidden costs sneak in… and how to factor them into your ROI timeline.
⏱️ 1. Underestimated Implementation Timelines
What’s promised: 3–6 months to go live.
What often happens: 9–18 months with multiple delays.
Why? Data clean-up, custom configurations, and training take more time than most vendors admit. Every extra month = more consulting hours, extended dual-system usage, and stretched internal resources.
✔️ ROI Tip: Ask vendors for timelines specific to distribution businesses—especially multi-yard or high-SKU operations.
🧠 2. Training Time & Productivity Loss
Switching to a new ERP system slows down teams at first. Employees need time to unlearn old habits, adapt to new processes, and gain confidence in the system.
This short-term dip in productivity often isn’t factored into ROI models—but it’s very real.
✔️ ROI Tip: Factor in a 1–3 month ramp-up period post-implementation and consider the cost of downtime or retraining sessions.
📦 3. Data Migration Complexities
Poor or incomplete data migration can lead to costly errors in pricing, inventory, and customer orders—especially dangerous in distribution where accuracy is key.
Clean-up, formatting, and testing take time—and money.
✔️ ROI Tip: Build in a line item for data auditing and pre-migration services in your budget.
🔄 4. Integration Costs with Existing Systems
You likely use other tools: logistics platforms, CRMs, supplier portals, or eCommerce. Getting your ERP to talk to all of them doesn’t always come included.
Custom APIs or middleware solutions can increase costs and push your ROI timeline further out.
✔️ ROI Tip: Get clarity from your ERP vendor on out-of-the-box integrations vs. custom builds.
🛠️ 5. Post-Go-Live Support & Optimization
ERP isn’t “set it and forget it.” The best ROI comes from ongoing optimization—but that means paying for support plans, new user licenses, or additional configuration down the road.
✔️ ROI Tip: Ask about Year 2+ costs, not just Year 1. ROI needs to be viewed over a 3–5 year horizon.
🧾 6. Change Management Costs
People don’t love change—especially when it affects how they quote jobs, track inventory, or fulfill orders.
Misalignment, resistance, or lack of buy-in can silently kill your ROI.
✔️ ROI Tip: Invest in change management early. A smooth rollout across departments can dramatically accelerate your time to value.
📉 Final Thought: Don’t Just Ask “When Will We See ROI?” — Ask “What Could Slow It Down?”
The ROI of ERP in distribution is real—but only when you factor in the whole picture. By identifying the hidden costs upfront, you’ll set more realistic expectations, avoid budget surprises, and ensure your ERP investment actually pays off.
