ERP System Development in Egypt: When You Need It and Requirements Before Implementation

An ERP system is not just a “software” that combines accounting and inventory. It is a unified way to run a company through one end-to-end operational cycle that can start with a sales order or procurement request and end with delivery, collections, and reporting. In the Egyptian market, the need for ERP usually becomes clear when operations grow and errors repeat across departments because teams depend on separate files or disconnected tools. The real problem is rarely a lack of tools—it’s the absence of a single source of truth: the same customer exists in multiple records, the same item has multiple codes, and reports are delayed because data doesn’t match.

ERP success doesn’t start with code. It starts with defining the right scope, standardizing data, and documenting business rules—because most ERP failures come from unrealistic expectations or trying to deliver everything in one version without clear phases.

1) When you truly need an ERP

1. Multiple departments work on the same data (sales / purchasing / inventory / accounting) with repeated errors
2. Multiple branches, warehouses, or POS locations with difficult standardization
3. Slow reporting and no real-time visibility into profit, inventory, or receivables
4. Heavy reliance on manual steps (Excel + manual transfer) causing loss or duplication of data
5. Operational traceability needs (serial/lot tracking, permissions, audit logs, approvals)

2) Define the ERP scope before any development

1. Core modules for the first version (e.g., sales + inventory + purchasing + accounting)
2. What will be postponed to phase two (e.g., HR, payroll, maintenance, production, complex workflows)
3. Define the outputs—not just features (e.g., daily profitability report, real-time stock count, customer aging report)

3) Data standardization — the step that determines 50% of success

1. Unified item master: codes, units, barcodes, categories, alternatives
2. Unified customer/vendor master: tax IDs, addresses, payment terms, credit limits
3. Branch/warehouse structure: naming, permissions, pricing zones
4. Pricing and discount rules: who approves, how it’s recorded, limits/thresholds
5. Data migration policy: what will be imported vs what starts fresh

4) Business rules that must be documented before writing code

1. Purchasing cycle: purchase request → approval → purchase order → receiving → invoice → payment
2. Sales cycle: quotation → sales order → delivery → invoice → collection/returns
3. Inventory movement: transfers, wastage, stock adjustments, minimum levels, movement permissions
4. Accounting setup: chart of accounts, cost centers, VAT, automated journal entries
5. Approvals: who approves discounts, returns, and who closes accounting periods

5) Common integrations in Egypt (to estimate complexity)

1. POS integrations for branches and checkout points
2. Shipping/delivery integrations (for selling businesses)
3. Payment gateway integrations (for online collections)
4. CRM or WhatsApp integration for orders and customer service
5. Accounting import/export or e-invoicing requirements (depending on the business)

6) ERP implementation phases that reduce risk

1. Analysis & modeling: process maps + data + permissions
2. MVP phase: core modules + operational reports + initial training
3. UAT phase: acceptance testing on real scenarios before launch
4. Gradual rollout: start with one branch/warehouse, then expand
5. Optimization phase: automation and advanced reporting after stability

7) Common mistakes that increase cost and delay delivery

1. Trying to implement everything at once with no phases
2. Not standardizing data before development
3. No clear acceptance criteria for reports and transactions
4. Relying on one person’s knowledge with no documentation
5. Ignoring training and change management inside the company

Summary & practical advice

ERP succeeds when it’s treated as an operations organization project more than a “software build.” Practical guidance:

1. Start with a limited scope that gives unified visibility into inventory, collections, and reporting.
2. Invest time in data standardization and business rules before writing a single line of code.
3. Roll out gradually with realistic UAT—this reduces errors and builds trust in the system.