TL;DR: How DoorDash Achieved Growth Without an ERP Overhaul
DoorDash scaled its global operations, expanding to over 40 countries, by optimizing its existing Oracle NetSuite platform instead of embarking on a costly ERP system overhaul.
• Saved Millions: Avoided high costs typical of ERP migration.
• Minimized Disruption: Maintained operational stability during rapid expansion.
• Focused on Growth: Prioritized market expansion and user experience improvements over backend upgrades.
• Leveraged Cloud-Based Tech: Adapted NetSuite's flexible, scalable structure to meet complex needs.
This approach highlights the importance of adaptability, focus, and using tools that evolve with business growth. New startups should consider cloud-native platforms and efficient planning to avoid unnecessary expense. Learn more about strong strategies for adapting technologies effectively in restaurant SEO solutions for scaling businesses.
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Scaling a business to global heights is rarely straightforward. Yet DoorDash, a leader in local commerce and food delivery, has found a way to defy expectations without succumbing to the financial and operational burden of a costly enterprise resource planning (ERP) overhaul. Their secret? Leveraging their existing Oracle NetSuite system, which they’ve optimized to scale alongside their explosive growth. As a serial entrepreneur myself, I find their strategy compelling, not just because it sidesteps a financial pitfall but because it underscores the value of operational adaptability and strategic focus in entrepreneurship.
How Did DoorDash Scale Without an ERP Overhaul?
In most fast-growing companies, operational infrastructure becomes a bottleneck. The default solution for many is migrating to a more sophisticated ERP system. This, however, is often accompanied by steep costs, significant downtime, and the risk of disruption. DoorDash’s leadership team took a decidedly different approach: maintaining flexibility within the framework of Oracle NetSuite, a cloud-based ERP platform which they had used since their early days. This decision allowed them to expand into over 40 countries, acquire major players like Wolt and Deliveroo, and maintain data and workflow consistency, all without the exorbitant price tag of an overhaul.
Why Avoiding an ERP Overhaul Was Critical for DoorDash
- Cost Efficiency: ERP migrations often run into the millions of dollars. By sticking with NetSuite, DoorDash avoided reallocation of finances that were better spent on growth-focused projects, such as autonomous delivery and international expansion.
- Disruption Minimization: Transiting from one ERP system to another can put businesses in a state of flux, creating delays and inefficiencies. By building on top of their existing platform, DoorDash seamlessly supported their growth trajectory.
- Adaptable Technology: The secret sauce? A scalable ecosystem. NetSuite’s modular and cloud-first design allowed DoorDash to address growing operational complexities without hitting a ceiling.
- Focus on Growth: Instead of obsessing over backend upgrades, DoorDash kept their eye on the prize, market penetration and customer experience improvements.
As I often advise founders through my role at Fe/male Switch, the most sophisticated solution isn’t always the right one. Start with tools that grow with you, and only scale up when those tools can no longer handle your load. DoorDash demonstrates this principle beautifully.
What Role Did Oracle NetSuite Play?
Oracle NetSuite was instrumental because of its cloud-based architecture and flexible configuration. Gordon Lee, DoorDash’s Chief Accounting Officer, highlighted its adaptability, saying, “Focus on growth instead of churning through vendors.” By leveraging NetSuite’s scalable ecosystem, DoorDash managed to integrate operations across multiple countries and acquisitions, critical capabilities for a company growing at their pace.
Lessons Entrepreneurs Can Learn from DoorDash
- Simplify Before You Scale: Overhauling systems isn’t always necessary. Analyze if your current tools can be stretched creatively to avoid unnecessary expense.
- Opt for Cloud-Based Solutions: Cloud-native systems like NetSuite are designed for flexibility, allowing businesses to reconfigure processes without being locked into rigid hardware or legacy software.
- Prioritize Growth Over Perfection: DoorDash’s decision to prioritize entry into new markets over perfect software alignment shows that operational speed often trumps operational perfection.
- Leverage Existing Vendor Relationships: Their close partnership with Oracle NetSuite allowed for collaborative problem-solving rather than a complete teardown-and-rebuild scenario.
Common Mistakes to Avoid
It’s not all smooth sailing without preparation. Here are three pitfalls to avoid when following the DoorDash path:
- Overestimating Internal Talent: Building a scalable tech stack on an existing framework requires deeply skilled in-house talent or solid consulting partnerships.
- Skimping on Long-Term Planning: Short-term cost savings can mean long-term inefficiencies. Approaches like DoorDash’s work best when coupled with clear processes and documentation.
- One-Size-Fits-All Mindset: What works for tech-savvy, cloud-first companies may not work for organizations built around traditional processes or rigid hardware dependencies.
Actionable Advice for Startups and SMEs
If you’re a founder considering your own operational systems, here are steps you can take to replicate DoorDash’s success:
- Audit Your Existing Tools: Evaluate if your current systems can handle projected growth with minor adjustments.
- Think Cloud-First: Choose platforms that enable modular additions instead of hard migrations.
- Focus on Partnerships: Collaborate with vendors to troubleshoot and refine your tools rather than immediately seeking replacements.
- Align Systems with Vision: Ensure your infrastructure scales in tandem with your business goals. This includes choosing tools adaptable to expanding geographies and acquisitions.
These approaches also apply beyond tech startups. Whether building restaurants, consultancies, or e-commerce brands, the principle remains: plan for flexibility and avoid disruption, especially when bootstrapped or in rapid scaling phases.
Conclusion
DoorDash’s journey showcases the power of sticking with tools that work, adapting them for scale, and focusing on growth rather than irresistible tech upgrades. Whether you’re operating as a solo entrepreneur or scaling a growing team, their lesson is clear: create a foundation that supports your vision without overshadowing it with complexity. As someone with a deep passion for experiential learning and entrepreneurship, I’d like to leave you with this: it’s not about the tools, it’s about how you use them to create scalable success.
Want to learn more about developing systems that scale like DoorDash? Explore resources on flexible technology implementation and optimize your strategic operational planning for growth.
FAQ on How DoorDash Scaled Without a Costly ERP Overhaul
How did DoorDash manage to scale globally without switching ERP systems?
DoorDash leveraged Oracle NetSuite's scalable and modular ecosystem, allowing them to expand globally while maintaining consistency in data and workflows without the high costs of migrating to a different ERP system. Their scalable tech choice enabled acquisitions and international growth. Discover how Automation for Startups enhances scalability.
Why is avoiding an ERP overhaul beneficial for fast-growing businesses?
Skipping an ERP overhaul minimizes costs, reduces downtime, and avoids disruption in operations. By building on existing systems like Oracle NetSuite, businesses can achieve flexibility without risking operational inefficiency. Read about lessons that startups can apply from DoorDash's example.
What is the main advantage of cloud-based ERP platforms like NetSuite?
Cloud-based ERP platforms offer modular designs, seamless updates, and adaptability to handle growth effectively. This helps businesses like DoorDash innovate and expand without needing system transitions. Learn how NetSuite supports startups and global enterprises alike.
How did DoorDash's decision aid its international expansion?
By utilizing a flexible tech stack, DoorDash expanded into over 40 countries while still prioritizing operational consistency and adaptability. This strategy enabled swift integration of newly acquired businesses. Explore additional communication strategies for growth adaptability.
What key lessons can entrepreneurs learn from DoorDash's strategy?
Entrepreneurs should prioritize growth over backend system perfection, leverage cloud-based, scalable solutions, and collaborate with vendors for optimization rather than jumping to new systems. Find insights on scalable solutions for women entrepreneurs.
How can startups apply the "simplify before you scale" principle?
Startups should audit existing tools to evaluate their scalability potential, implement minor adjustments instead of costly overhauls, and ensure alignment with long-term business goals. Learn how low-cost business ideas can integrate scalable platforms.
What role does vendor collaboration play in growth management?
Strong vendor relationships enable businesses to refine and optimize existing systems rather than undergoing disruptive system migrations. DoorDash's partnership with Oracle NetSuite exemplifies the benefits of this approach. Explore partnership-driven scaling strategies.
What risks should businesses avoid when scaling existing systems?
Businesses must not overestimate internal capabilities, overlook long-term planning, or apply a one-size-fits-all mindset to technology integrations. These oversights could hinder scalable growth. Gain insights on avoiding common scaling pitfalls.
What are the benefits of prioritizing modular and flexible systems?
Modular systems like NetSuite allow incremental upgrades, adaptable configurations, and ease of integration, which are especially useful in fast-scaling companies like DoorDash. Find actionable strategies on adopting modular tools.
How can startups align operational systems with business visions?
Startups should ensure tools and systems are scalable enough to support both immediate needs and long-term goals, especially for market expansions or acquisitions. Read more on building authority with aligned strategies.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the point of view of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.