Imagine you’re concocting the perfect new spirit. It’s unique, bold and perfectly crafted for your distillery’s vibe. Now, imagine trying to create a software solution that’s just as custom-tailored and perfectly aged. Tempting, right? But hold on to your tasting glass because while building your own in-house software sounds like an ideal match for a unique operation, the risks can be as complex as a 30-year-old single malt—and not always as smooth.
What Are the Risks of Building Your Own Distillery Software?
When distilleries try to build their software from scratch, it’s a bit like taking your first shot at distilling whiskey. Success requires a lot of time, money and luck to avoid a massive headache. The risks can cost you, so here are a few things to know before building DIY distillery software.
High Upfront and Long-Term Costs
Building custom software might seem like a worthwhile investment. Beware—those initial costs can quickly spiral. Developing software is kind of like aging whiskey: it takes time and money, and even then, there are no guarantees you’ll end up with what you hoped for.
- Development expenses: You’ll need a team that knows both the tech and the ins and outs of distilling. Finding people with that blend of skills is tricky—and keeping them could be pricey.
- Maintenance and upgrades: Unlike your barrels, software doesn’t improve with age. It demands constant attention. If your team isn’t ready to keep updating and fine-tuning your software, you’ll soon be left with a dusty relic that can’t keep up.
- Surprise costs: Think you’re done paying after the initial build? Just wait until your business evolves. Scaling up, adding features or adapting to new compliance laws can feel like having an open tab at the bar—costs add up fast.
Compliance and Regulatory Risks
Strict rules bind the distillery world, and keeping up with changing regulations in your own software is like trying to hit a moving target. As with your spirits, one wrong ingredient in compliance reporting can ruin the whole batch.
- Complex rules: Compliance standards in distilling can get complex—federal laws, state laws, labeling standards, you name it. Ensuring your software covers everything accurately can be like managing an overcrowded bar on a Saturday night.
- Risk of non-compliance: Miss an update on regulatory changes? That’s an issue you won’t want to explain to regulators. And unlike a bad batch of whiskey you can pour down the drain, regulatory fines don’t disappear easily.
- Legal liability: The stakes are high—errors in compliance reporting can bring more than a bad hangover. If your software slips up, you could face fines, shutdowns or worse.
Security Vulnerabilities
Picture this: you store your whiskey recipes, customer details and trade secrets in your new, homegrown system. Now, picture that software getting hacked. Not so appealing, right? Security in software is serious business and it demands expertise.
- Heavy security demands: Keeping software secure is like guarding your most valuable barrels. You need constant monitoring, regular updates and a vigilant team. Most distilleries don’t have a cybersecurity expert, so handling this in-house is a big lift.
- Risk of data breach: If someone hacks your system, your proprietary data could be out there faster than last season’s limited release. For a distillery, this isn’t just a loss of data—it’s a potential loss of reputation.
- Compliance with data protection standards: Regulations like GDPR and CCPA are serious business and have steep fines if you don’t comply. Building in-house software means you’re responsible for incorporating these standards, so you might have to answer to more than just your customers.
Limited In-House Expertise and Support
Distilleries aren’t typically IT powerhouses. Developing and maintaining software requires specialized knowledge that, frankly, most distilleries don’t have on staff.
- Reliance on key personnel: When only one or two people understand your custom software, you’re in a vulnerable spot. If they leave, it’s like your master distiller walking out the door without a backup. You’re left with the software equivalent of a cellar full of casks and no idea how to handle them.
- Building a support team: Establishing an in-house IT support team is expensive and time-consuming, especially when looking for people who understand the intricacies of both software development and distillery operations.
- Downtime risks: Without a dedicated support team, you risk downtime whenever a bug or security issue arises. Downtime in the distillery business can mean missed orders, disrupted workflows and unhappy customers.
How Homegrown software affects your distillery business plan
Further challenges of building your own distillery management platform in-house include hindering growth and a loss of focus for your team. In turn, this can impact long-term profitability and expansion plans.
Scalability and Future-Proofing Challenges
Distilleries on a growth path need software that can keep pace. If you aim to double production or expand distribution, the software needs to grow with you. The problem? In-house software often struggles to scale without major overhauls. Imagine needing a bigger warehouse but the blueprints are outdated.
- Scaling pain points: Expanding your in-house software to accommodate new locations, additional staff or more sophisticated reporting can be challenging. It might even mean starting over from scratch—like needing a whole new distillery to meet demand.
- Lagging technology: With software solutions like Crafted ERP, you get regular updates and the latest tech. On the other hand, in-house software may start to feel like old inventory—collecting dust while competitors leverage the latest features.
- Future integration issues: The more you grow, the more you want to connect new tools and equipment to your software. With custom in-house solutions, adding these new tools can be like trying to distill with outdated equipment—complex, costly and frustratingly slow.
Loss of Focus on Core Business Functions
At the end of the day, a distillery’s priority is to craft and sell quality spirits. Building and managing software is an entirely different business. Trying to focus on both can stretch resources thin and take the fun out of the creative process.
- Time and resource drain: Pouring time into an in-house software project means pulling time away from developing your products and growing your brand. You could be perfecting a new blend instead of debugging software.
- Risk of lost focus: When you’re knee-deep in software decisions, it’s easy to lose focus on what got you into the business in the first place. Trying to juggle IT and distilling can dilute your priorities—and no one wants a watered-down booze or a watered-down brand.
Custom Allure Camouflages the In-House Risks
Building your own software is a tempting idea, but as any distiller knows, sometimes the allure of a big project can hide some pretty significant risks. In-house software comes with high costs, significant compliance challenges, security concerns, and an ongoing need for expertise. When all these factors add up, going it alone can feel more like a liability than a custom-crafted solution.
For most distilleries, choosing distillery software like Crafted ERP makes more sense. With built-in compliance, regular updates and proven scalability, a platform designed for distilleries lets you focus on what you do best without sweating over software. Ready to chat? Let’s do this.
