SMEs and MSMEs are the backbone of any economy. Therefore, automating and optimising their tasks while safeguarding their data is paramount. Operating in a competitive market with low entry barriers is challenging for small and mid-sized businesses. Budget constraints often stop these organisations from opting for pricey technology.
ERP software solutions such as Odoo and SAP Business One are designed for such organisations. When it comes to choosing the best fit, the debate of Odoo vs SAP Business One never ends. This article gives a comprehensive overview of these two ERP software solutions to promote better understanding.
An Introduction to the Two Leading ERPs: Odoo VS SAP
A Brief Introduction to Odoo
Founded in 2005, Odoo is an acronym for On-Demand Open ERP. It is a one-stop shop with all management tools in one platform. The solution offers a range of business applications that collectively form a comprehensive suite of enterprise management. Odoo cloud ERP can help small and mid-sized businesses with a plethora of functionalities.
A Brief Introduction to SAP
SAP Business One is a robust ERP solution from the ERP market leader, SAP, specially designed to cater for the needs of small and mid-sized businesses. SAP B1 has been helping SMEs evolve their processes and grow for the last two decades. Cloud-based variations of SAP Business Onemeet diverse business needs and strive to improve customer experiences. SAP Business One has different industry-specific features that help organisations acquire sales and build a dynamic customer base.
Odoo vs. SAP Core Difference:
Here are four core differences between SAP Business One and Odoo:
| Point of Difference | SAP Business One | Odoo Online |
| eCommerce order frequency | SAP Business One is perfect for large organisations that handle massive data volume every minute. | Odoo lets you track small data volumes such as daily orders and sales. |
| Flexibility | SAP Business One offers stability and works best for larger-sized organisations. | Odoo provides great flexibility for businesses as they can change their ERP processes conveniently from time to time based on their needs. |
| Hosting Options | SAP Business One is a paid solution, and you have to bear the license fee. However, you do not have to pay any additional server maintenance costs. | Odoo community version allows for the installation of the Odoo ERP software on your servers without any charge, while the enterprise edition requires a fee to use the Odoo server. |
| Hosting Options | Customised features as per business needs | On-premise, public and private deployment options |
| Migration to new ERPs | SAP is better if you have a large organisation and want stability. It has backward compatibility. Hence you need to migrate all the data and code with each version update. | In the case of Odoo, you have to move all your data every time a new update is introduced. |
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Features Comparison: Odoo Vs SAP ERP
Both Odoo Online and SAP Business One have specific features catering to various business processes. The table below compares the two solutions against different parameters and gives you a comprehensive idea of each-
| 1. Inventory Management | ||
| SAP Business One | Odoo | |
| Multi-warehouse | Yes | Yes |
| Multi-language, Multi-currency | Yes | Yes |
| Electronic data interchange | Yes | No |
| Bin replenishment | Yes | Yes |
| Bin replenishment | Yes | Yes |
| 2. Human Resource Management | ||
| Timesheets | No | Yes |
| Schedule management | No | Yes |
| Overtime | No | Yes |
| Touchscreen attendance | No | Yes |
| 3. Reporting | ||
| Demand forecast | Yes | Yes |
| Maintenance KPIs | No | Yes |
| Dashboard | Available | Available |
| Custom Reports | Yes | Yes |
| 4. Supply Chain Management | ||
| Dropshipping | Available | Yes |
| Purchase orders | Yes | Yes |
| Inbound quality control | No | Yes |
| Vendor price list management | No | Yes |
| Master production schedule | No | Yes |
| 5. Supply Chain Management | ||
| MRP Integration | No | Yes |
| Centralized BoM Management | No | Yes |
| Routing Version Management | No | Yes |
| Bulk BoM updates | Yes | Yes |
| Approval Workflows | No | Yes |
User Interface: Odoo Vs SAP ERP
When opting for an ERP solution for your business, checking the functionalities is not enough. You must also have a keen eye to understand the user interface. Both Odoo and SAP Business One have responsive mobile UI and Android native apps. However, there are some differences between these software solutions, such as:
- SAP Business One has a complex UI, but Odoo has a simpler one.
- SAP Business One has an iOS native app, unlike Odoo.
- Odoo Online has a full web interface, but SAP Business One does not.
Despite having an easy-to-use interface, new Odoo users require methodical training to ensure optimum and effective utilisation.
Talking about functionality, ‘Odoo vs. SAP ERP’ can be best explained through a comparative study of the features of both the ERP software solutions, as given above.
ERP Deployment: Odoo Vs SAP ERP
SAP Business One is deployed using a single-node architecture with components such as VOC Firewall, which restricts access, and One Compute Engine VM instance with SSD-based persistent disk that satisfies SAP HANA performance standards. SAP B1 can be deployed as SaaS or IaaS, which are the on-cloud deployment options. However, if you want, you can also opt for on-premise deployment.
Odoo Enterprise apps can be hosted in three ways; on-premise, on-cloud, or Odoo Online. On-premise deployment can be done to your own server if you want to own a dedicated hosting infrastructure. For on-cloud hosting, Odoo.sh is used. It is a PaaS (platform as a service). It allows you to deploy your cloud platform. Finally, Odoo Online is the simplest of all. It is a SaaS and relieves you of maintaining the technical aspects. You can set up your cloud instance in a few clicks and use it on any device from anywhere.
Customer Satisfaction Rating: Odoo Vs SAP ERP
Customer ratings and testimonials play a vital role in influencing a potential customer’s choice of ERP. SAP still remains the best-rated ERP in the market, securing over 4 stars out of 5. But Odoo is not far behind in the race. It is catching up to SAP B1 quickly.
Despite being a relatively amateur technology compared to SAP, Odoo is emerging as a strong competitor, particularly for small and medium-scale businesses that are looking for a more flexible and cost-effective solution.
Pricing Comparision: Odoo Vs SAP ERP
When it comes to pricing, Odoo online is priced at $25/user/month, and SAP Business One costs $2,975/user perpetual+18% per year. Odoo offers monthly and yearly subscription plans, whereas SAP Business One only has an annual plan. With Odoo, you will also get a free demo. The five-year cost of up to 50 years for Odoo and SAP Business One is $75,000 and $282,625, respectively. For both ERP solutions, the packages contain cloud options and new version upgrades. Besides the standard, the cost will vary for every organisation depending on customisations and add- ons.
Odoo Vs ERP: Which is the Best for My Business?
Are you still debating on SAP Business One vs Odoo? If the above points did not help you make a choice, try understanding your business needs and select an ERP that matches them. If your organisation has 2 to 1000 users, SAP Business One is the best choice. For more than 1000+ employees, Odoo can be a better fit. Furthermore, Odoo offers greater flexibility since it is open-source software. As an organisation, if you want stability, SAP Business One can be an excellent option for such occasions.
Why should you choose SAP ERP Over Odoo?
SAP ERP simplifies your business process by improving connectivity, automating business processes, integrating with existing applications and handling proliferating data. Although SAP Business One is costlier than Odoo, its functionalities save cost and time in the long run, and the organisation can enjoy value for money.
SAP ERP can also be scaled up as the business grows. It can be easily customised. Tailor-made ERP software such as SAP ERP proves effective since it caters to specific business activities and needs. It also helps you stay compliant. The long-term benefits of SAP ERP make it the best choice over Odoo.
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Conclusion: Odoo vs SAP ERP
There is no right or wrong ERP. Based on their functionalities and business requirements, you need to find the ideal solution for your business. SAP Business One experts at Silver Touch Technologies Ltd assist you in picking the right ERP solution. We are just a ring away!
