Odoo Review 2024: Features, Benefits, Limitations and Pricing

Odoo is an open-source Enterprise Resource Planning (ERP) platform that streamlines operations by consolidating sales, inventory, accounting, and more into a unified system. Its open-source nature fosters a collaborative environment, leading to continuous development and innovation. Odoo offers a broad spectrum of modules spanning sales, marketing, human resources management, accounting, and more.

Odoo differentiates itself through its seamless integration of diverse business applications. This centralized approach aims to streamline workflows and improve data visibility across departments. Additionally, its open-source model promotes a vibrant community of developers, fostering customization and rapid innovation.

Founder and CEO: Fabien Pinckaers

Company Established: The company’s origins began in 2005 under the name TinyERP.

• 2005: TinyERP founded
• 2008: Renamed to OpenERP
• 2014: Renamed again to Odoo

OpenCore business model is where you have 80% of the applications are free and open source and we add 20% of application where you have to pay that . – CEO Fabien Pinckaers

Features of Odoo

Inventory and Supply Chain Management

• Inventory Tracking and Valuation: Get real-time insights into stock levels, movements, and accurate valuation using methods like FIFO, LIFO, and average costing. Odoo’s smart double-entry system automatically syncs inventory adjustments across purchases, sales, and returns, minimizing errors.
• Multi-Warehouse Support: Manage inventory across multiple warehouses or locations with ease. Set up reordering rules and automated stock transfers for optimized inventory distribution.
• Dropshipping and Advanced Features: Integrate seamlessly with dropshipping suppliers. Leverage advanced features like cross-docking, barcode scanning, and integration with manufacturing modules to streamline complex supply chain operations. It is ideal for e-commerce and distribution companies.

Sales Management

• Lead Management and Nurturing: Automate lead capture from various sources (emails, website forms, social media) and create nurturing campaigns with tailored email sequences. Odoo’s predictive lead scoring helps prioritize sales efforts.
• CRM Functionality: Get a 360-degree view of customers, including contact information, communication history, and sales opportunities. The intuitive interface promotes collaboration and effective pipeline management.
• Quotations and Sales Orders: Create polished quotations with ease, integrate e-signatures and online payments, and seamlessly convert quotations into sales orders.
• Upselling and Cross-selling: Odoo suggests complementary products and accessories during the sales process, maximizing revenue opportunities.

E-commerce

• Website Builder and Online Store: Design stunning web pages with Odoo’s drag-and-drop interface and AI-powered website configurator. Customize themes, product pages, and the entire shopping experience without extensive technical knowledge. Odoo’s website builder makes it accessible for non-profits on a budget to establish a professional online presence.
• Product Management: Manage product information, and variants (size, color, etc.), and set up diverse pricing strategies. Odoo handles complex promotions, discounts, and tax calculations automatically.
• Customer Experience Tools: Live chat, product reviews, SEO optimization, wishlists, and various payment integrations enhance the customer experience. The connection with inventory and CRM ensures a smooth omnichannel experience.

Finance and Accounting

• General Ledger and Reporting: Odoo’s core accounting features cover journal entries, charts of accounts, customizable financial reports, and tax management.
• Bank Integration and Reconciliation: Automate bank feed synchronization, manage recurring invoices, and streamline the reconciliation process.
• Multi-Currency and Localization: Handle transactions in multiple currencies and adapt Odoo to local tax regulations and accounting standards, including US GAAP.
• Expense Management and Budgeting: Track employee expenses, create budgets, and compare actuals against forecasts for better financial control.

Additional Features

• Manufacturing: Supports BOMs, routing, work orders, and integration with inventory and production planning for streamlined manufacturing processes making it adaptable for both small-scale custom manufacturers and larger production facilities.
• Project Management: Manage projects, track tasks, utilize Gantt charts, and collaborate effectively with internal and external stakeholders.
• Human Resources: Features include employee directory, time and attendance tracking, payroll integration (may vary by country), and management of expenses and leave requests.

Value Proposition of Odoo’s Core Features

Integration	Customization	Scalability	User-Friendliness	Cost-Effectiveness

Benefits of Odoo

• All-in-one Solution: Odoo’s primary strength lies in its modular structure. From CRM and sales to inventory, accounting, and even website building, Odoo aims to consolidate your business operations into a single platform. This reduces reliance on multiple, often disconnected, software solutions.
• Flexibility and Customization: Built on open-source foundations, Odoo allows for significant customization to match your unique workflows. With technical expertise, you can tailor the system, extending its capabilities beyond out-of-the-box features.
• Scalability: Odoo’s modularity makes it appealing for scaling businesses. You can start small with a few core apps and expand as your needs and user base grow.
• Cost-Effective: With a free tier and competitive pricing for paid plans, Odoo can be more budget-friendly compared to industry giants, like SAP or NetSuite. This is particularly attractive for SMBs.
• Strong Community: Odoo fosters a vibrant community of users and developers. This translates to plentiful online resources, support forums, and a network of Odoo partners for assistance.

Limitations of Odoo

• Complexity: While customizable, Odoo can become complex, especially with heavy modifications. Implementation and ongoing maintenance might require technical expertise or investment in an Odoo partner.
• Depth vs. Breadth: Odoo covers a wide range of features but may lack the niche functionalities offered by industry-specific ERPs. Assess if its features offer sufficient depth for your specific sector.
• Ease of Use Trade-off: The user interface is generally intuitive, but the sheer volume of features and customization options can create a steeper learning curve compared to more streamlined software.
• Hidden Costs: While the initial pricing might seem attractive, factor in potential costs for implementation, customization, and specialized support beyond the included basics.
• Updates and Maintenance: Odoo’s frequent updates are a double-edged sword. While they introduce improvements, they might require ongoing adjustments to customizations and integrations if not carefully managed.

Note: Odoo’s suitability depends heavily on your business size, industry, budget, and technical capabilities. It’s crucial to evaluate Odoo’s features against your specific pain points and workflows before committing.

Pros of Odoo	Cons of Odoo
Odoo streamlines operations by consolidating sales, CRM, accounting, and more into a single platform. Benefits from continuous community innovation and the potential for extensive customization. Select the apps you need and build a tailored solution for your business. The “One App Free” plan lets you thoroughly test one essential function before committing to a paid plan.	The “One App Free” option restricts you to a single module.  Discounts are primarily for the initial 12-month contract on annual plans. Costs are tied to the number of users, requiring adjustments as your team grows or shrinks. While customization is possible, extensive tailoring can become complex and might require technical skills or an Odoo partner.

Odoo Pricing

	One App Free	Standard	Custom
Starting Price	Free	$31.10 per month- Regularly $24.90 per month – Yearly	$46.70 per month- Regularly $37.40 per month – Yearly
Ideal for	Small businesses just starting with ERP and wanting to test a specific module. Cost-conscious organizations need a basic solution for a single function	Growing businesses seeking a comprehensive solution. Companies wanting maximum functionality out-of-the-box	Larger enterprises seek flexibility and customization. Organizations with complex workflows or unique operational requirements.
Includes	One Odoo app of your choice Unlimited users Support Maintenance Access to Odoo’s eLearning platform	Unlimited Odoo apps Unlimited users Support Maintenance Access to Odoo’s eLearning platform	All features of the Standard plan API access for integrations Optional on-premise hosting (additional fees apply)

Choosing the right Odoo plan is about more than just price. Consider factors like:

• Number of users
• Essential business processes to be managed
• Level of customization required
• Hosting preferences (cloud vs. on-premise)

Analyze Your Needs

Simple processes, few users, tight budget → Consider “One App Free“

Multiple apps needed, prefer cloud → “Standard” might be ideal

Heavy customization, complex workflows, specific hosting → “Custom” is likely required

Companies that are Using Odoo

Odoo’s flexibility makes it an attractive choice for businesses of all sizes and sectors. From international giants to niche e-commerce stores, here’s a glimpse at some notable companies leveraging Odoo ERP:

1. Toyota (Automotive Industry)
2. World Wide Fund for Nature (WWF) (Non-profit)
3. Santafixie (E-commerce, Cycling)
4. Sock Club (Subscription-based E-commerce)
5. Scarpetta Shoes (Footwear Manufacturing and Retail)
6. KOGLAND Commerce Pvt Ltd. (Global Trading)
7. Qatar Investment Authority (Financial Services)
8. National Agency for Food and Drug Administration and Control (NAFDAC) (Government Regulatory)
9. Sodexo (Facilities Management, Food Services)
10. Bazile Telecom (Telecommunications)

This is just a small snapshot of the thousands of companies that benefit from Odoo’s comprehensive ERP solutions. To explore more success stories and find inspiration for your own Odoo implementation, visit Odoo’s customer page.

Is Odoo Right for your Business?

Odoo touts itself as the solution for businesses of all sizes. And while there’s some truth to that, the reality is more nuanced. Let’s break down when Odoo shines and when it might leave you wanting more.

Odoo Excels When:

• You’re on a budget: The “One App Free” option is unbeatable for initial exploration, and even Standard plans are reasonably priced compared to some ERP giants.
• You want everything in one place: The integrated suite is a major selling point. Odoo does a decent job at being an “ok” solution across many areas, making it a tempting choice for streamlined operations.
• You like to tinker: Odoo’s open-source nature gives you more customization freedom than many competitors. If you’re tech-savvy or work with a good Odoo partner, this is a huge advantage.

Odoo Might Frustrate If:

• You need deep industry specialization: Odoo is a generalist. While it covers lots of bases, some industries have very specific needs that niche ERPs cater to better.
• Your processes are super complex: The more customization you need, the steeper the learning curve. Odoo can get the job done, but it might not be the most elegant solution.
• You lack in-house IT or a dedicated partner: While Odoo offers support, it’s not hand-holding. Implementation and ongoing maintenance can become overwhelming if you’re not prepared for the technical side.

Where Odoo Fits:

• Small to Mid-Size Businesses (SMBs): This is Odoo’s sweet spot, especially if you’re growing fast. It offers room to scale without the massive price tag of SAP or Oracle.
• Rapid Growth Startups: The open-source model lets you tailor as needed, which is excellent if your initial needs are simple but you anticipate evolving quickly.
• Non-profits: Odoo’s pricing and modularity often make it a good fit for organizations operating on tight budgets and grants.

If you’re an SMB looking to streamline sales, inventory, and accounting without the hefty price tag of SAP, Odoo is worth serious consideration.

Think Beyond the Marketing Hype

Odoo sells itself as the solution for everyone. Don’t get me wrong, it’s a powerful tool. But be realistic:

• “Easy implementation” is relative: Setup takes effort, even for small businesses.
• Beware of the upsell: You might start cheap, but advanced customization and support come at a cost.

Odoo is worth considering, especially if your priority is a flexible and relatively cost-effective solution. But, do your due diligence. Demo it thoroughly, talk to current users in a similar industry, and be honest about your in-house tech capabilities.

Odoo ERP Alternatives

List of 10 Odoo ERP Alternatives Software for your business.

1. NetSuite
2. Acumatica
3. SAP Business One
4. SAP ECC
5. Microsoft Dynamics 365 Business Central
6. ERPNext
7. Kinetic
8. Sage Intacct
9. SYSPRO
10. AccountMate

Note: It is highly recommended to thoroughly research each solution tailored to your specific business needs. Many vendors offer demos and free trials to get a feel for the system before committing.

Conclusion

Odoo offers compelling value for businesses seeking flexibility, affordability, and a unified platform for various operations. It’s particularly well-suited for SMBs, growing startups, and organizations comfortable with a degree of customization. If you value an all-in-one solution, are budget-conscious, and are willing to invest in a technical setup (either in-house or through a partner), Odoo is worth exploring. However, if you require highly specialized industry features or prefer extensive hand-holding throughout implementation, it might be wise to consider alternatives. Before committing, take advantage of the free trial, seek insights from companies in your industry who use Odoo, and honestly assess your internal technical capabilities.

Odoo FAQs

How does Odoo pricing work?

Odoo offers several pricing plans including a free, Standard, and Custom options. You can find more details on their website.

Who typically uses Odoo?

Odoo is used by businesses of all sizes, from freelancers to large enterprises, as well as non-profits and government organizations.

What languages does Odoo support?

Odoo supports many languages, including English, Spanish, French, Chinese, Arabic, German, and more.

Can I use Odoo on my phone or tablet?

Yes! Odoo works on Androids, iPhones, and iPads.

Does Odoo have an API so I can connect it to other software?

Yes, Odoo has an API for integrations.

What apps does Odoo work with?

Odoo integrates with popular apps like PayPal, Zapier, Google Docs, Outlook, and others.

What kind of help does Odoo offer if I have questions?

Odoo offers a knowledge base, email support, chat, FAQs, and phone support.

Why is Odoo a good choice for larger businesses?

Odoo offers a single system to manage many parts of your business. This saves money and makes it easier for different departments to work together.

Can I try Odoo for free before I buy?

Yes! Odoo has a free trial so you can test it out before purchasing a plan.

Can I change Odoo to fit my company’s specific needs?

Yes, you can customize Odoo. However, complex changes might require additional support that may need to be purchased separately.