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Odoo VS SAP : Which One Should You Choose for Your Enterprise in 2023?1

Odoo VS SAP : Which One Should You Choose for Your Enterprise in 2023?

By : Maulik Shah

Summary

If you have closely studied an ERP system, you would know how it can help with miscommunication between departments, inefficient utilization of resources, and disrupted workflow. While deciding to work with an ERP is a simple task, choosing the right ERP system might not be that simple.

There is plenty of ERP software available today that might help innovate your business processes for the better. Today, I will keep this comparison limited to Odoo VS SAP. On one hand, you have an industry-leading ERP vendor SAP, and on the other, you have the fastest-growing, open-source ERP solution like Odoo.

So, what should be your pick?

Here, I will help you differentiate between the two ERPs and decide which one would be a more tailored fit for your business needs.

An Introduction to the Two Leading ERPs - Odoo VS SAP

 

What is SAP ERP?

What is SAP ERP

SAP Product range

SAP SE is a German software development company and one of the largest vendors of ERP software. Its enterprise resource planning software is famous as SAP ERP, which is available in more than 50 languages.

The software was initially released in 1972 and transformed the way organizations managed enterprise resources. Its capability to handle large amounts of data makes it a global leader in delivering ERP solutions.

Brands like Amazon, PWC, Topcon, and Mercedes EQ love using it. The best part? It has multiple product ranges catered to meet your unique business needs. For example,

  • SAP S/4HANA
    This ERP software package is a successor to SAP ERP and SAP R/3 and is used for integration and management of different business processes. With the help of SAP business suite 4 HANA, you can manage your finance, sales, manufacturing, human resources, procurement, and service departments seamlessly.SAP S/4HANA is cloud-enabled and available in two editions – public (ready-to-use) and private (tailored fit). It is mostly used by large enterprises that have to deal with a big number of orders each day.
  • SAP Business ByDesign
    This ERP software is more suitable for small to medium-scale businesses. This product is available as a SaaS and is cloud-enabled to provide business units with exclusive ERP features without having to invest in IT infrastructure.
  • SAP Business One
    You can leverage its on-premise or cloud ERP software to improve various business processes like finance, sales, purchases, inventory, CRM, reporting and analytics, etc. It is easy to deploy and widely used by small to medium-scale enterprises.

A Brief Introduction to Odoo ERP

Odoo was initially released in 2005 as an open ERP software to manage various business operations like eCommerce, billing, accounting, finance, HR, project, and inventory management. This ERP software made its debut to assist businesses of small and medium scale in enhancing their business operations.

After seeing its immense popularity and growth, the Odoo Enterprise edition was launched in 2015 with improved features. Business units can leverage its enterprise version to improve their productivity greatly.

The Odoo Community edition vs Enterprise comparison shows the latter version comes with many interesting features like Odoo’s dedicated hosting, improved UX, and more. However, the community edition can also be customized by professionals as per their unique needs.

Odoo Modules

Odoo Modules

Here, you can work with different Odoo modules, such as

  • Accounting
  • Manufacturing
  • Sales
  • Marketing
  • Human Resources
  • Shipping
  • Productivity
  • Website
  • Odoo services

Core Difference Between SAP and ERP

While SAP has been here for quite some time now, it was accessible by only the large enterprises mostly because of the cost. But, the launch of OpenERP Odoo changed the way small to medium-sized businesses work today as it was available for free of cost.

Today, even SAP has introduced various ERP products that fit the interest of small and medium-scale businesses. So, it is quite possible for you to get confused about which is the right ERP software for you.

Here, look at the difference between SAP and Odoo ERP to decide.

I. eCommerce order frequency

Can you sum up the average number of eCommerce orders your store gets each day and is it within 100? If yes, you might consider choosing Odoo ERP software. Even though it is open-source software, the software can deal with a considerable amount of data seamlessly.

And if you don’t deal with many orders each day and are a small business unit, you are better off with the Odoo Community version. Furthermore, if your business expands in the future, you can always switch to the Enterprise edition or customize it for better performance.

However, if you are an enterprise or a large organization, SAP would be a more appropriate choice. It can handle a large amount of data and is used by sites like Amazon which uses thousands and millions of orders each day. Even though the software tends to be slow when dealing with huge volumes of data, it is still the most reliable one.

II. Flexibility

Smaller organizations have to evolve continuously to meet the day-to-day changing market demands. For instance, if you change your supplier, you might have to customize the entire supply chain process. And that is possible only if your Odoo ERP software is flexible enough.

Odoo provides great flexibility for businesses as they can change their ERP processes conveniently from time to time based on their needs. At the same time, if you are a large organization with branches in multiple countries, you would need a more stable ERP system. SAP can be a great option for such occasions.

III. Time and effort for SAP and Odoo implementation

Odoo is written using Python and Javascript, which are quite popular as technology and has a simple learning curve. Furthermore, the Odoo ERP software features multiple modules, making implementation easier for you. These modules come with exclusive features and can be easily implemented considering their simple user interface.

Nevertheless, you can do more and customize your ERP software when you hire Odoo developers. They can integrate software catered to your unique needs.

Compared to Odoo, SAP is more complex as a technology. Though it has several modules like Odoo, working with them is not easy. You will need to be trained professionally by SAP developers to learn to work with SAP.

An SAP developer has to be skilled in JAVA, C, C++, and SAP’s own programming language ABAP to work with the platform. Thus, the learning curve is steep, and finding seasoned SAP developers is also a challenging task.

IV. Hosting options

Whether you choose Odoo or SAP, you have the option to install on-premise or on a private/ public cloud server. However, the Odoo community version enables you to install Odoo ERP free of cost on your servers. Or, you can go with the enterprise edition and pay a fee to use the Odoo server.

Whereas, if you choose SAP, you will have to pay the license fee for it. Note that you wouldn’t need to pay any additional server maintenance costs.

V. Migration to new ERP versions

Are you comfortable migrating all your data to one ERP version now and again migrating to the other when another latest version is introduced?

If you are okay with the frequent migration and update of your ERP system, Odoo is a better choice compared to SAP. Odoo ERP constantly updates its modules to bring in new features and functionalities that can improve your processes.

For instance, the latest Odoo 16 version was released in October 2022. And businesses are already migrating to Odoo 16 to leverage the new features. It is possible because the Odoo interface is quite easy to work with and can be easily updated to the latest version.

While it is optimal for an emerging business, it might not be the most ideal option for a large and stable enterprise. For example, Coca-Cola has expanded its business in more than 200 countries and has terabytes of data to deal with.

In such a scenario, SAP is a more appropriate choice because of its backward compatibility. Therefore, you don’t have to migrate all data or code every time a new update is released.

VI. Error fix

In the Odoo ERP vs. SAP competition in terms of bug fixing, Odoo might be a preferable choice for businesses. Since it is open-source, the platform gives you free access to a huge community of developers. You can turn to them whenever there’s an issue with development and seek help as early as possible.

However, SAP is proprietary software and if you face any issues with the implementation, you will have to rely on your development team or SAP support team.

SAP Business One VS Odoo Pricing

SAP Business One Odoo Online
Pricing $2,975/user + 18% each year $25/user/month
Contract duration Annual only Can be monthly or annual
Free trial Not available Available
Version upgrades Included Included
Update services Not included Not included

 

SAP ERP vs. Odoo: Features to Check

 

I. User Interface

User Interface
User Interface-2

SAP Business One Odoo Online
Responsive Mobile UI Yes Yes
Full web interface No Yes
Android native app Yes Yes
iOS native app Yes No
Ease of use Complex Easier

 

II. Manufacturing

SAP Business One Odoo Online
Multi-level BoM Yes Yes
Routings No Yes
Byproducts No Yes
Production calendar No Yes
Kanban planning No Yes
Backward scheduling No Yes
Manufacturing orders Yes Yes
Job tracking Available Available
rework/repair No Yes
Edit production BoMs Yes No

 

III. Inventory management

SAP Business One Odoo Online
Multi-warehouse Yes Yes
Multi-language, Multi-currency Yes Yes
Electronic data interchange Yes No
Bin replenishment Yes Yes
Mobile support Available Available

 

IV. Inventory

SAP Business One Odoo Online
Inventory valuations Yes Yes
Inventory forecasts Yes Yes
ABC Analysis No No

 

V. Supply chain management

SAP Business One Odoo Online
Dropshipping Available Yes
Purchase orders Yes Yes
Inbound quality control No Yes
Vendor price list management No Yes
Master production schedule No Yes

 

VI. Reporting

SAP Business One Odoo Online
Demand forecast Yes Yes
Maintenance KPIs No Yes
Dashboard Available Available
Custom reports Yes Yes

 

VII. Human Resources

SAP Business One Odoo Online
Timesheets No Yes
Schedule management No Yes
Overtime No Yes
Touchscreen attendance No Yes

 

Odoo vs. SAP comparison: Bottomline

One thing is clear that while Odoo is still quite new as an ERP system, SAP is a more stable technology that has been here for years. SAP has been a preferred choice for many large enterprises because of its standard processes and adherence to quality benchmarks.

Though it isn’t perceived to be quite flexible for small and medium-scale businesses, the launch of SAP Business One has tried to address many challenges that these businesses face. But, the cost involved is comparatively higher than its competitors.

Whereas, if you choose Odoo ERP, you can either use the Community edition or Enterprise edition as per business needs. Besides, Odoo helps small and medium businesses effortlessly with its unique features and functionalities.

Need further customization with Odoo modules to bring innovative yet fruitful changes to your business apps? Hire Odoo developers from BiztechCS to custom-create Odoo apps to your benefit. Being a Ready Odoo partners, we are always up-to-date with the latest features and updates to give your business apps the competitive edge it desires.

Not sure how to get started? Give us a call and we will help you from the ground up!

FAQs

Is Odoo better than SAP?

SAP is one of the oldest and leading ERP software available in the market. Even though Odoo is quite amateur as a technology, it is becoming an inevitable choice for small and medium-scale businesses because of the offered flexibility and scalability.

Is Odoo ERP or CRM?

Odoo is primarily an ERP software. However, there are several modules that can be integrated as per your requirements to improve your CRM tasks.

Is SAP a CRM or ERP?

Like Odoo, SAP is also a leading vendor of enterprise resource planning software. The ERP suite also consists of SAP CRM that can help you optimize your customer relationship management efforts.

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