ERP, Odoo

ERP Comparison: Odoo vs. SAP

Odoo ERP Management

Choosing an ERP that is a good fit for your company can substantially impact your company’s future growth and stability. Because the cost of implementing an ERP is so high, demanding a great deal of time and input from employees across your organization and potentially significant software licensing and consulting fees  to get it right the first time.

SAP is an Enterprise Resource Planning software which has been created by a German company known as SAP SE. It includes modules for all the business functions that are required by an organization. 

Odoo is also an all-inclusive suite of business applications that has modules for Manufacturing, Financial Management, Human Resources, Project management, Warehouse management and much more. In the following article, we’ll look at the key differences between these two ERP systems, their characteristics and key features. 

SAP Characteristics

For 50 years, SAP has been proudly helping enterprises of all sizes – in all industries and geographies – run at their best with ERP. Discover how we can help you take the lead in your industry with ERP designed for every business need.

An SAP ERP system consists of software components and modules, each focusing on an essential business function, such as finance and accounting, HR, production, materials management, or customer relationship management (CRM). Organizations only use the modules they need to run their particular business.

SAP’s various ERP products enable its customers to run their business processes, including accounting, sales, production, HR, and finance, in an integrated environment, with data from each module stored in a central database. 

The close integration and standard data store ensure that information flows from one SAP ERP component to another without redundant data entry and help enforce financial, process, and legal controls.

The most widely installed SAP ERP Central Component (SAP ECC) is an on-premises ERP system usually implemented in medium-sized and large companies.

The main advantages of SAP ERP, especially the systems intended for large enterprises (ECC and S/4HANA), include the following:

  • standardization of an organization’s business processes;
  • a unified view of the business;
  • customizability.

Odoo Characteristics

Odoo is an open-core suite of business apps. It is built on a modular structure in which each app covers one business function and is installed as needed. Odoo is available to be installed on-premises as well as in the cloud. It has two editions, the Community and the Enterprise one. 

Enterprise software relates to a system with encrypted code, and Community software is a system with code available to the public. It means that the Enterprise version you can get only on a payment basis by subscribing to its services. Odoo Community is entirely free, and the client can use it for an unlimited period, provided that it is hosted on his server.

By choosing Odoo Enterprise, the clients get a modern, flexible, user-friendly ERP and hosting, cloud storage, company support, and access to unique modules developed specifically for this version of Оdoo. Each of these modules includes many additional submodules and has a variety of configurations and great functionality.

At the same time, when choosing modules, the client should consider that some of them are not free, and others may contain not-free submodules. They can only be used every month. And this means that the subscription to such modules will affect the final cost of services. 

Also, choosing one or another module, you should be careful that some modules cannot work without each other. In such cases, it is necessary to buy both, even if you do not need the second one—for instance, the eCommerce module and the Website module. 

More Differences

SAP is tailored for organizations whose survival depends on strict adherence to processes, not flexibility. When you have offices or subsidiaries 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 on more than 70 continents. The enterprise can’t change its processes drastically. 

In comparison, Odoo helps small and medium businesses that can operate one way and change it tomorrow to stay competitive. This ERP is like a constructor, where you can quickly assemble the whole system from the blocks and, if necessary, change the components. For instance, if the company changes the suppliers, their processes, such as the supply chain, also change. Flexibility is the basis for survival in such companies.

Odoo is an open-source ERP written in Python and made up of modules. You can use the necessary ones and stay flexible in exploring new Odoo features and solutions. Popular programming languages and modular structures make it easier for you to find developers with an appropriate level of expertise and experience. In this Odoo vs. SAP comparison, Odoo comes first in terms of the speed of ERP implementation.

SAP, albeit consisting of modules, has a more tangled structure since it serves the needs of large international companies from the Fortune 1000 list. The 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 grasp the system’s structure and logic at a glance — this ERP requires specialists with at least five years of expertise, specifically in SAP, and finding them may become tricky. 

SAP ERP vs. Odoo is far more entangled. It offers detailed but intricate customization, for example, if you need multi currency functionality, multistage revisions of products, and tangled logistics. Such an ERP may be required if your organization is a global corporation. But at the same time, this ERP requires stricter adherence to its processes. 

Odoo is more flexible in tailoring your organization’s processes. This ERP is easier and cheaper to customize. However, Odoo and SAP have different customization capabilities. As one size never fits all, no wonder that the off-the-shelf functionality of both is usually not enough. 

In Odoo, modifying the steps of any process, whether it’s a product delivery, exchange, or return, is more accessible than in SAP, where it would either be impossible or very time-consuming and exhausting. SAP requires a very strict tie-in to its processes. In this respect, Odoo significantly outperforms its rival.

Odoo vs SAP Сomparison

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

Wrapping UP

Looking at everything mentioned above, Odoo vs. SAP comparison is pretty vague. It’s impossible to say 100% clear which ERP is more beneficial. It depends on your particular business needs and unique requirements. The Odoo ERP solution would give you all the necessary benefits you need for upgrading your business requirements. Our Odoo developers use the most appropriate technologies for Odoo ERP implementation in the trading business. We develop user-friendly applications that will bring product growth. Contact us for further information.