ERP, Odoo

ERP Comparison: Odoo vs. SAP

Choosing the right  ERP for your company is crucial since the selected ERP system will surely impact your company’s growth and stability. And because the cost of implementing an ERP is typically quite high, you should seriously consider all the options to choose the best one. 

That’s why we have come up with a review of the most popular ERP systems today – Odoo vs SAP. Speaking about the latter option, SAP  is an Enterprise Resource Planning software that has been created by a German company called SAP SE. This ERP includes modules for the majority of the business operations needed by companies.  

Odoo, in its turn, is also an all-inclusive suite of business applications. It boasts of more than 40 base apps including modules for Manufacturing, Financial Management, Human Resources, Project management, Warehouse management, and much more. 

Ahead, we are going to have a look at the key differences between these two ERP systems.

SAP Top Features

For incredible 50 years, SAP has been proudly helping enterprises of all sizes, all spheres, and all continents. What’s so special about the SAP ERP system?

It’s a trustworthy platform that consists of software components and modules, each focusing on an essential business function (finance and accounting, HR, production, materials management, customer relationship management (CRM), and many more). And the best part is that companies can use and pay only for those modules they need the most.

Simply put, SAP enables its customers to run their business processes without going overboard. With that, the data from each module is securely stored in a central database, so there is no chance of data leakage. 

Take note that SAP ERP is usually implemented in medium-sized and large companies. And the main advantages of SAP ERP include:

  • standardization of a company’s business processes;
  • unified view of the business processes;
  • good customizability.

Odoo Key Advantages

Odoo is an open-source suite that boasts a modular structure where each app covers one or several business functions. As a nice touch, Odoo can be installed both on-premises and in the cloud. 

Odoo has two editions – the Community and the Enterprise. Odoo Enterprise software is a system with encrypted code, whereas Community software is a system with open-source code, i.e. code available to the public. 

Upon installation of the Enterprise version, you’ll get more perks yet you’ll be tied to monthly subscriptions, whilst the Odoo Community is completely free, and clients can use it for an unlimited period provided that it’s hosted on their server.

Ultimately, by choosing Odoo Enterprise, the clients get a modern, flexible, user-friendly ERP along with hosting, cloud storage, company support, and access to unique modules developed specifically for the Enterprise version. Each of the aforementioned modules includes many additional submodules and can boast great configuration and functionality.

When choosing  Odoo Community, you should take into account that the basic modules are free but some extra ones may require a subscription as they are “borrowed” from the Enterprise version. Also, when choosing extra modules, you should be aware of the fact that some of them won’t work without other ones. In such cases, you may need to buy both to make the whole system work smoothly. A bright example is the combo of the eCommerce module and the Website module. 

More Differences

SAP is tailored for companies that rely mostly on strict adherence to processes instead of flexibility. Anyways, when you have offices with hundreds or thousands of employees in different countries, following transparent business processes is the key to the smooth functioning of the whole enterprise. 

For example, Coca-Cola has to manage marketing, advertising, manufacturing facilities, and representative offices in more than 70 countries. Hence, the company can’t change its processes drastically and swiftly. Automation is the key, and that’s where SAP may come in handy.

In comparison, Odoo is best for small and medium businesses that can constantly change their strategy to keep afloat in this fast-paced world. The Odoo ERP is like a constructor, where you can quickly re-assemble the whole system from the blocks and, if necessary, change the components. For instance, if the company switches suppliers, its processes also change. And Odoo can quickly adapt to those changes. Actually, flexibility is the basis here. 

Going Deeper into Details

Odoo is an open-source ERP written in Python and made up of numerous modules. As already mentioned, you can use only the necessary ones and stay flexible in exploring new Odoo features and solutions. And thanks to the use of a popular programming language and modular structure, finding a developer or a team of developers with an appropriate level of expertise and experience (for ERP implementation) won’t be a great deal. 

SAP, albeit consisting of modules, has a rather tricky structure to serve the needs of large enterprises. The SAP ERP is written in C, C++, Java, and ABAP (a high-level programming language invented by SAP). By and large, it’s not a case where developers can get a grasp of the system’s structure and logic at a glance — this ERP requires specialists with at least five years of expertise in SAP, and finding them may be quite challenging.  

SAP ERP is also far more entangled compared to Odoo ERP. It offers detailed but intricate customization. Plus, it requires stricter adherence to its processes. Adaptation to your very needs is nearly impossible.

Odoo, in its turn, is much more flexible in tailoring to your organization’s processes. In Odoo, modifying the steps of any process, whether it’s a product delivery, exchange, or return, is more accessible than in SAP. So, we can conclude that Odoo significantly outperforms its rival when it comes to adjustability.

Odoo ERP vs SAP Сomparison

ParametersOdooSAP
Amount of data the ERP can handleAn optimal option if you have no more than a hundred orders dailyIt’s capable of storing and handling a huge amount of data. SAP can process tens of thousands orders daily, Not without any in the ointment though the system is quite slow
Free version availableOdoo Community is totally free. Paid Odoo Enterprise offers unlimited possibilitiesSAP has only paid options
FlexibilityIt provides you with the opportunity to easily change blocks and their components to stay flexible and competitiveIt’s not really adaptable. You’ll more likely have to adjust to the business logic of SAP than vice versa
ComplexityThe ERP is written in Python and has a modular structure, making it easier to work with the system and find experienced developersThis ERP is written in C. C++, Java, and ABAP (a high-level programming language invented by SAP), it’s not a case where developers can grasp the system’s structure and logic at a mere glance
The license fee for the on-premise optionNo, Odoo is free if you install it on your own serversYes, perpetual, annual subscription of consumption payment models are available
Simplicity of customizationIt’s easier and cheaper to customizeIt offers detailed but intricate customization that requires more resources and expertise
Specifics of the migration to a new ERP versionIt provides you with the scripts for more effortless data transfer, but you still have to handle data and code migration by yourself, especially to transfer the custom functionalityIt has backward compatibility, which allows you to avoid code or data migration every time a new version is deployed
Bug fixing optionsIt’s an open-source ERP with a huge community, thanks to which your developers can find ready-made solutions on GitHubIt’s a closed-source ERP, you can rely only on your development team’s expertise and SAP technical support
Adaptability to new regulationsOdoo can be easily and quickly adjusted to new regulations if the developers who support the module are experiencedSAP’S modules have a more complex structure, it’s complicated to make them comply with new regulations
Source: https://www.instinctools.com/blog/all-round-erp-comparison-odoo-vs-sap/

Wrapping Up

Considering everything mentioned above, Odoo vs. SAP comparison is pretty vague. It’s impossible to say for sure which ERP is more beneficial for very your business. It largely depends on your particular needs and unique requirements. 

Yet, we believe that the Odoo ERP system is an all-around platform that can suit businesses of any size thanks to its unrivaled adjustability and a wide variety of different modules.  

So, if you’re interested in trying Odoo, our experienced developers are happy to help you  implement Odoo ERP into your business. Just contact us to get down to business!