Comparing Odoo and Business Central: Which ERP Fits Your Manufacturing Needs?

When it comes to selecting an ERP system for your manufacturing business, the choice often comes down to flexibility, cost, and specific industry needs. Two popular ERP systems, Odoo and Microsoft Dynamics 365 Business Central, stand out in the market, but they cater to different types of manufacturers in unique ways.??

In this article, we’ll summarize some of the key differences between these two platforms to help guide your decision-making.?

For even more detail, you can read our full breakdown of Odoo vs Business Central for Manufacturing.?

Flexibility vs. Structure?

Odoo: Highly Customizable?

One of the biggest draws for manufacturers considering Odoo is its flexibility. As an open-source platform, Odoo is modular, meaning you can tailor it specifically to your unique processes. This makes it an attractive choice for small to mid-sized businesses that need specialized solutions.?

One challenge is that customers who do take advantage of the open-source features to directly customize Odoo are unable to combine that with the automatic upgrades and new feature rollouts. A customized version of Odoo requires the customer pay extra (sometimes substantially more) to upgrade to newer versions.?

Business Central: Ready for Scale?

On the flip side, Business Central is known for offering a more structured, out-of-the-box experience.?Business Central is particularly suitable for manufacturers who are looking for a system that’s simple to deploy, scalable, and easy to manage as the business grows.?

Whereas Odoo is built on scores of addon modules (which add to your incremental costs), Business Central has just 2 tiers of product. Essentials and Premium. This makes the purchase process much simpler.?

Business Central is technically open-source as well, although it is commercial open-source. You must purchase the product from Microsoft and pay subscription fees to continue using it. You can customize and modify it with few limitations, and those customizations are still included with the standard Microsoft maintenance upgrades (although you may need to fix small errors with your custom code).?

Manufacturing-Specific Features?

Odoo: Adaptable to Niche Needs?

Odoo’s customization extends to its manufacturing features, allowing companies to build the system around their unique production requirements. It’s an excellent choice for manufacturers with niche or highly specific operational needs. However, this flexibility can be a double-edged sword, as customizing and maintaining the platform may require more internal resources or third-party support.?

Business Central: Comprehensive Out-of-the-Box?

Business Central, meanwhile, is designed with manufacturers in mind right out of the box. It includes robust tools for managing production, optimizing supply chains, and accessing real-time analytics. Its integration with Microsoft’s ecosystem, including Office 365 and Power BI, ensures that manufacturers can manage operations efficiently with powerful reporting and data visualization tools.?

Both Odoo and Business Central support addons from the community (i.e. 3rd party addons from an App Store) and these addons are often used to round out manufacturing functionality.?

Cost and Implementation?

Odoo: Low Entry Cost, Long-Term Complexity?

One of the most appealing aspects of Odoo is its flexible pricing model. Businesses can start small, paying for only the modules they need, making it ideal for smaller manufacturers with limited budgets. However, as business requirements grow and customization increases, the total cost of ownership can rise, especially when factoring in the need for custom development and third-party services.?

The high cost of maintaining more customized versions of Odoo deployments is a big cost and can become a significant burden.?

Business Central: Cost-Effective for Growth?

Business Central might come with a higher initial investment, but it’s often the more cost-effective solution in the long run, particularly for mid-sized and larger manufacturers. Its structured implementation process, combined with its seamless integration into the broader Microsoft ecosystem, reduces ongoing customization and support costs, which can make it a better long-term investment.?

The Microsoft “extension” based customization is designed to keep cost of ownership down.?

Final Thoughts

Both Odoo and Business Central both made it into our 2024 list of the best cloud ERP for manufacturing. However, the right choice depends on your manufacturing needs, budget, and long-term growth strategy. Odoo’s customization capabilities are ideal for businesses that require specific features, but Business Central’s structured, scalable approach makes it a better option for manufacturers focused on streamlined operations and future growth.?

To explore these systems in more detail and to find out which one might be best for your business, read the full article on our blog:?Business Central vs Odoo.?