What Makes Odoo ERP the Best Pick for SMEs in 2024?

Summary

In a world of rapid technological changes and evolving trends, small and medium-scale enterprises must strive tooth and nail for survival. Besides technology adoption and struggle with market penetration and expansion, they frequently compete with large companies and work with limited financial resources. 

Evidently, SMEs have to work hard so they can overcome these challenges and make a profit out of their business. However, that seems difficult, considering their budget restrictions. The need for ERP becomes inevitable for such businesses as it results in more streamlined operations, improved productivity, and better sales strategies. 

If you are a budding entrepreneur facing a similar situation, this blog is for you. Here, we will talk about Odoo – one of the best ERP software for small businesses and why SMEs prefer it. 

So, without further ado, let’s jump right into it! 

Challenges Faced By SMEs

Small to medium-scale businesses face multiple business and operational challenges that they must overcome to survive and flourish. But, what are these challenges? Let’s take a deep dive into those aspects. 

• Cash Flow Management: A business has to keep sufficient cash flow to ensure every operation goes smoothly. It becomes a struggle, especially for startups and medium-sized enterprises because of fluctuating expenses and revenues. 
• Supply Chain Management: A robust and efficient supply chain management system is crucial for every business, whether big or small. Businesses require a system that facilitates less work overload for employees and automation in various tasks like inventory management, invoice generation, etc. 
• Technology Adoption and Integration: As an SME, you might fight tooth and nail to keep up with the continuous technological changes. Constant upgradation to the latest technology demands talent and money that SMEs may lack. 
• Competition With Large Businesses: SMEs often have to compete with large-scale companies equipped with better resources, tools, finance, and brand identity. 
• Market Access and Expansion: One of the key challenges SMEs face is their struggle with market penetration, especially in the international markets. 
• Customer Acquisition and Retention: While attracting customers is one thing, it requires a lot more consistent effort, elevated customer service, and marketing to retain those customers. Doing that requires resources, tools, and money, one of the reasons why SMEs struggle to earn loyal customers. 
• Talent Recruitment and Retention: SMEs often struggle with recruitment compared to larger companies. They take longer to recruit talent and the resources may/ may not be the suitable ones. If they end up leaving, you will have to go through the recruitment process all over again and it’s a costly affair. One of the reasons why SMEs often prefer to outsource. 

What is the Odoo ERP System?

Odoo is a suite of business management software solutions like eCommerce, billing, accounting, manufacturing, inventory management, project management, enterprise resource planning, customer relationship management, etc. 

Initially launched as an Open ERP system, it became a widely used ERP system because of its scalability, customizability, and extensibility. Odoo later released its Enterprise version to accommodate the needs of various business types and fund the operations of the Odoo Community. 

It is also called a low-cost ERP system as the Community version license is available free of cost and you only have to spend to hire Odoo developers for implementation and migration purposes. 

Odoo ERP system allows you to scale flexibly as per your needs. For instance, you can start with a few Odoo modules and later add more when your business grows. Besides the various modules, you also have access to the Odoo App Store where you get multiple free and premium Odoo applications. These apps can extend your system’s capabilities and streamline your business operations. 

Why Choose Odoo ERP for SMEs?

Now that we are familiar with the Odoo system basics, you may wonder why I should choose Odoo for my SME? 

Yes, there are multiple ERP and CRM systems available in the market, some open-source and some proprietary. Why not those? 

For starters, the Odoo platform is a single-stop solution with multiple capabilities that enable seamless collaboration between teams, project management, resource management, task management, and much more. 

But that’s not all, there are multiple other reasons why SMEs prefer ERP Odoo. 

• Modularity and Scalability: With Odoo software ERP, you only pay for things you need. You don’t have to add unnecessary features/ modules and overburden your system. Rather, you can add modules when the need arises. You can scale up as your business grows and you handle more complex operations. 

• Cost-Effectiveness: If you choose the Odoo Community version, the software license is available free of cost. You only have to take care of hosting and the cost of implementation. The Odoo Enterprise version however comes with a cost. You can use Odoo Standard by paying $24.90/ user/month;  as for Odoo Custom, the plan starts from $37.40/ user/month. Your total cost will depend on the number of users, integrations, and plan. 

• Customization and Flexibility: Odoo is highly customizable. Businesses can tailor the software to their specific needs, which is particularly beneficial for SMEs with unique processes. You can use the ERP system Odoo to custom-build features unique to your industry. 

• Real-Time Data and Analytics: With the integration of smart data analytics, you can access real-time data that helps in decision-making. It is especially useful in improving your marketing and sales efforts. 

• User-friendly Interface: Odoo is known for its intuitive user interface, making it easier for employees to adapt to and use effectively, thereby reducing training time and costs. The Odoo interface is also present in dark mode as preferred by many. 

• Integrated Business Process: One of the reasons why Odoo for small businesses works seamlessly is because of its integrated business solution. Regardless of the industry you are in, you can manage all your business operations with Odoo. Whether it is managing your eCommerce operations, forming sales strategies, marketing strategies, streamlining business processes, automating various tasks, or reducing errors, you can do it all with a single system Odoo. 

• Ecosystem of Apps: Odoo is considered one of the best online ERP for small businesses because of its app store with thousands of apps developed by the community, allowing businesses to extend the functionality of their ERP system as needed. 

• Automation of Routine Tasks: SMEs can save much of their time and reduce errors by automating repetitive tasks. With automation, you can ensure to work effortlessly even with limited manpower. For example, checking inventory level and replenishing items before they go out of stock, invoice generation and sharing, push notifications, auto-scheduling of follow-up activities, automated time tracking and payroll processing, automated email marketing campaigns, automated task assignment when tasks are finished, auto-generation of reports and data analysis, etc. 

• Global and Mobile Accessibility: Being cloud-based, it offers global accessibility, which is beneficial for SMEs looking to expand or operate in multiple locations. Its mobile compatibility also enhances flexibility and remote access.

• Community and Support: Odoo has a strong community of developers and users, along with professional support and regular updates, ensuring the system stays up-to-date with the latest features and security measures.

With multiple benefits and features, Odoo appears to be the best ERP for small and medium enterprises. It has a seamless user interface, is easy to use, and provides greater flexibility. You can optimize your business operations a lot more seamlessly with a system like Odoo. 

However, having the right partner for implementation is as crucial as choosing the Odoo ERP itself. 

Why SMEs Should Choose BiztechCS for ERP Implementation?

For the implementation of Odoo ERP, BiztechCS might be your best bet. With our 17+ years of experience across a myriad of industries, we have the skills and expertise to provide a unique solution for your SME. Being an Odoo partner, we constantly learn and update our knowledge of the Odoo business suite in order to provide you with the best solution. Whether you use Odoo ERP for service industry or any other, we can help you with implementation, migration, training, support, and maintenance. 

Connect with our Odoo experts for any queries! 

Final Thoughts

Odoo ERP stands out in 2024 as an exemplary choice for SMEs due to its comprehensive, flexible, and cost-effective solutions. Tailored to meet the unique demands of small and medium-sized enterprises, Odoo’s integrated approach streamlines business processes, enhancing efficiency and productivity. Its user-friendly interface, coupled with a wide array of customizable modules allows SMEs to adapt the system to their specific needs, fostering growth and scalability. 

The automation capabilities of Odoo significantly reduce manual workload, thereby minimizing errors and increasing operational efficiency. Furthermore, its open-source nature and strong community support provide continuous improvements and a wealth of resources, ensuring that SMEs are equipped with a robust and future-proof tool.