Introduction
Odoo ERP is an open source suite of business applications including CRM, accounting, inventory, project management, and eCommerce. The software uses a modular approach so businesses can start with key apps then add more capabilities as needed.
Odoo originally started in 2005 as TinyERP, created by Belgian company Tiny sprl. It was later rebranded as OpenERP and then Odoo in 2014. Odoo’s core premise is to empower businesses to build customized ERP solutions via flexible open source software.
The key functional modules and apps in Odoo’s ecosystem include:
| Module | Description |
|---|---|
| CRM | Sales pipeline, campaigns, customer service |
| Accounting & Finance | Billing, payments, tax, reporting |
| Inventory & Logistics | Warehouse, dropshipping, routing |
| eCommerce | Product catalog, shopping cart, checkout |
| Project Management | Tasks, resources, timesheets, Gantt |
| Human Resources | Employees, attendance, payroll, recruitment |
Odoo utilizes Python and PostgreSQL to provide a scalable framework for custom ERP implementations. It uses a Model-View-Controller architecture to separate data, presentation, and business logic layers.
The open source model allows businesses to use Odoo apps for free under the LGPLv3 license. Paid enterprise plans offer additional features, support, and cloud hosting options. Odoo also maintains an online app store with over 6,000 addons to extend functionality.
Pros of Using Odoo ERP
There are several advantages to using Odoo as an open source ERP platform:
| Pro | Description |
|---|---|
| Flexible and Modular System | Odoo utilizes modules and apps, so businesses can start with core features needed then expand as required. You avoid overpaying for unused functionalities upfront. |
| Open Source Software | The community version of Odoo is available under an open source license for free download and use. This avoids large licensing costs associated with proprietary ERPs. |
| Customizable and Scalable | Businesses can easily customize Odoo to meet specific industry and operational requirements. The modular architecture also allows the system to scale from small to very large deployments. |
| User-friendly Interface | Odoo provides an intuitive, consistent user experience across modules. The UI emphasizes usability through clear menus, smart search, and embedded analytics. |
| Integrated Applications | Core business applications like CRM, accounting, inventory are built-in and seamlessly integrated. This unifies data and processes under one platform. |
| Strong Community Support | As an open source solution, Odoo benefits from a large community support forum to crowdsource answers to issues and meet local needs. |
Cons of Using Odoo ERP
While Odoo has many advantages, there are also some downsides to evaluate:
| Con | Description |
|---|---|
| Can be Complex for First Time Users | The extensive configurability and modular nature of Odoo can create a steep learning curve. It requires upfront investment in training and change management. |
| Limited Native Reporting | While functional, Odoo’s built-in reporting capabilities are basic. Businesses often need to install reporting apps for advanced analytics. |
| Apps Can Get Expensive | While the open source version is free, buying multiple commercial apps and enterprise modules can add up in costs. |
| Implementation Requires Expertise | Being highly customizable, Odoo implementations benefit from developers and consultants familiar with best practices. This is an added cost. |
| Functionality Gaps in Some Modules | Some Odoo apps have pockets of weakness requiring workarounds or third party plugins. For example, its native ecommerce capabilities lag dedicated platforms. |
Odoo ERP Pricing and Editions
Odoo is available in 3 primary editions catering to different business needs:
| Edition | Description |
|---|---|
| Community Edition | The open source community version is freely downloadable for use. It allows unlimited users and includes all core modules except for enterprise-grade POS and manufacturing features. |
| Online (SaaS) Edition | The Odoo Online cloud plan starts at $25/month and adds enterprise features plus automated updates and backups. Pricing scales based on number of users. |
| Enterprise (On-Premise) Edition | On-premise version including all enterprise features, with pricing starting at $15,500/year for up to 300 users. Annual support costs extra. |
The total cost of ownership varies based on the number of apps, customizations, and users. Some cost factors include:
- How many core vs enterprise modules needed
- Number of custom apps to build or buy
- Type of deployment – cloud vs on-premise
- Number of user licenses needed
- Level of customization and developer support
- Third party integrations
- Training and change management needs
For small businesses, an initial basic Odoo site can be deployed for $5,000 – $20,000+. Enterprise implementations can easily reach $100,000+ with heavy customization.
Key Features and Modules
Odoo provides a vast array of business applications. Here is a detailed look at some of the most popular modules:
Customer Relationship Management (CRM)
Odoo CRM supports sales and marketing teams through the entire customer lifecycle. Key features include:
| Feature | Description |
|---|---|
| Lead/Opportunity Management | Track leads to convert into sales opportunities and orders. |
| Sales Pipeline | Visual sales funnel reporting for forecasts. |
| Marketing Automation | Create targeted email campaigns and workflows. |
| Customer Service | Manage customer tickets and issues to resolution. |
| Reporting & Analytics | Charts and pivot tables to analyze sales performance. |
Accounting and Finance
Odoo Financial Accounting covers core accounting needs including:
| Feature | Description |
|---|---|
| Accounts Receivable/Payable | Manage customer invoices, vendor bills, payments. |
| Cash Flow Analysis | Track income and expenses to improve cash flow. |
| Tax Handling | Comprehensive tax management for US and global. |
| Budgeting & Forecasting | Set budgets and compare actuals with projections. |
| Financial Reporting | Audit trail, general ledger reporting, profit/loss statements. |
| Bank Reconciliation | Link bank feeds to reconcile accounts. |
Inventory and Logistics
Key highlights of Odoo Inventory Management include:
| Feature | Description |
|---|---|
| Warehouse Operations | Manage stock across multiple warehouses. |
| Inventory Control | Track stock quantity, serial/lot numbers, and costs. |
| Dropshipping | Direct order delivery from vendors to customers. |
| Routes & Operations | Optimize delivery routes and vehicle/driver allocation. |
| Shipping Integrations | Out-of-box carriers including UPS, FedEx and USPS. |
| Barcode Scanning | Speed up stock moves and orders via mobile barcode readers. |
eCommerce
Odoo provides complete ecommerce capabilities to build online stores:
| Feature | Description |
|---|---|
| Product Catalog | Photos, pricing, variations, SEO descriptions. |
| Promotions | Set customer discounts and coupons. |
| Shopping Cart | Saved carts, quotes, checkout process. |
| Multiple Websites | Manage separate websites for brands/countries. |
| Payment Gateways | PayPal, Stripe, Authorize.net integrations. |
While functional for basic B2C and B2B sites, Odoo may not provide the full feature set offered by dedicated ecommerce platforms. Retailers with advanced requirements may need to integrate Odoo with a separate solution.
Project Management
For services businesses, Odoo Project enables managing client engagements:
| Feature | Description |
|---|---|
| Tasks & Planning | Breakdown projects into tasks with timelines. |
| Timesheets | Log employee time on projects for billing. |
| Gantt View | Interactive Gantt charts to visualize schedules. |
| Billing Rates | Bill clients based on employee rates and time tracked. |
| Reporting | Charts on project profits, progress, and KPIs. |
Project planning integrates tightly with other Odoo apps like CRM, Accounting, and HR.
Human Resources
Odoo Human Resources meets many essential HR needs:
| Feature | Description |
|---|---|
| Employee Database | Maintain digital personnel records. |
| Time Off Management | Submit and approve PTO requests. |
| Attendance Tracking | Track employee presence and working hours. |
| Payroll | Process payroll accounting and payments. |
| Recruitment | Track applicants through hiring stages. |
| Onboarding & Offboarding | Automate employee onboarding/offboarding. |
| Appraisals | Performance reviews and talent evaluation. |
| Training | Manage employee training and certifications. |
| Reporting & Analytics | Employee turnover, utilization, and other insights. |
For basic HR functionality in a single country, Odoo provides solid capabilities. For advanced needs around talent or performance management, specialized HR systems may be better suited.
Other Notable Features
Some other important capabilities in Odoo:
| Feature | Description |
|---|---|
| Multi-Company Support | Manage and report across business units |
| Multi-Language | Support multiple languages for sites/documentation |
| Document Management | Centralized document storage with approvals |
| Automation | Configure rules and triggers for workflow automation |
| API | REST API for integrating other apps with Odoo data |
| Mobile Access | Odoo app for access on the go |
Conclusion
Odoo ERP provides a flexible open source framework to manage key business processes for SMBs and enterprises. With its modular approach, it offers integrated applications for CRM, accounting, inventory, eCommerce, project management, and more.
The software is highly customizable to suit company needs, with a large app store for additional features. However, the extensive configurability can prove challenging for companies without technical expertise.
For the right business willing to invest in implementation and customization, Odoo delivers a robust ERP platform to unify operations. It works best for manufacturing, distribution, professional services, and retail companies looking for open source alternatives to SAP or Oracle.
Overall, Odoo ERP stands out as a scalable and cost-effective solution for managing end-to-end operations and improving productivity.