Odoo
Modular open-source ERP suite that combines CRM, e-commerce, accounting, inventory and more in one integrated platform.
Odoo has grown from a small open-source ERP project into one of the most comprehensive business software suites worldwide. With over 12 million users and more than 40 official modules, Odoo covers almost every business process. For SMEs it offers a cost-effective alternative to SAP, Microsoft Dynamics and Salesforce.
What is Odoo?
Odoo is an integrated suite of open-source business applications covering all business processes of a company. The 40+ official modules include CRM, sales, e-commerce, accounting, inventory, manufacturing, project management, HR and marketing. Odoo is written in Python and uses PostgreSQL. There are two editions: the free Community Edition (open source) and the paid Enterprise Edition with extra features, mobile access and official support. Thousands of community modules are available via the Odoo App Store.
How does Odoo work?
Odoo is modular: companies install only the modules they need and add more later. All modules share one database so data flows between CRM, sales, inventory and accounting. A sales order in CRM automatically creates a delivery order in inventory and an invoice in accounting. Odoo can run as cloud (Odoo Online/Odoo.sh) or on-premise. Customisation is done via the Studio module (no-code), custom Python modules or the XML-based view architecture.
Practical Examples
Trading company: Odoo connects webshop, inventory and accounting. Orders flow into inventory, shipping labels are generated and invoices posted.
Service company: Project management, time tracking and billing in one system. Timesheets are turned into invoices automatically.
Manufacturer: Bills of materials, manufacturing orders, quality control and inventory in one integrated environment.
HR services: Applicant tracking, employee management, payroll and expenses as an integrated solution.
Typical Use Cases
ERP for SMEs: Full business solution without the cost and complexity of SAP
E-commerce integration: Webshop with direct link to inventory, shipping and accounting
CRM and sales: Lead management, pipeline tracking and automated follow-ups
Project management: Task management, time tracking and budget control for service companies
Manufacturing and inventory: Production planning, BOMs and stock management
Advantages and Disadvantages
Advantages
- All-in-one: 40+ modules cover almost every business process
- Open source: Community Edition is free and open
- Modular: Install only what you need and extend later
- Modern UI: Intuitive web UI with drag-and-drop and responsive design
- Strong community: Thousands of developers and 40,000+ community apps
Disadvantages
- Enterprise cost: Full Enterprise Edition is not cheap for SMEs (from about €24 per user per month)
- Customisation complexity: Deep customisation needs Python developers and Odoo expertise
- Upgrade effort: Major upgrades (e.g. 16 to 17) can be heavy, especially with custom modules
- Depth: Individual modules may not match specialised tools (e.g. DATEV for accounting)
Frequently Asked Questions about Odoo
Is Odoo really free?
Can Odoo replace SAP?
How long does an Odoo implementation take?
Related Terms
Want to use Odoo in your project?
We are happy to advise you on Odoo and find the optimal solution for your requirements. Benefit from our experience across over 200 projects.