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By: Lijin AJ

Odoo ERP Used for Small Scale Businesses

Functional Odoo 15

Enterprise Resource Planning (ERP) is described as a wizardry wand in the field of the booming technological industry. By utilizing ERP tools in business sectors, they can decrease the struggles and difficulties of their staff and lead to leaps to progress. As time moves in all kinds of businesses, deals have been complex, so to fix your operations quickly, Odoo ERP is more significant.

In this blog, we will be discussing the benefits of Odoo ERP used in small-scale businesses.

As this advanced technological era has been so rapidly developing and making more ease over the operations once an ERP tool is outfitted, all the tasks make it worthier and more accessible and thus leads to a grit of many corporate-scale businesses. Therefore more and more small-scale companies are now initiating ERP systems. Such systems consistently constitute the business biorhythm such as production, inventory management, order processes, etc. Odoo is currently the most popular ERP system, which plays a significant role in systematically tracking your business.

What is Odoo? What are the challenges faced by the Odoo?

Odoo is an Open Source ERP that subsides and tackles managing large, medium, and small scale businesses. The formal launch of ERP was in the 1990s in accounting and finance.  From the 17th century, by the invention of Blaise Pascal, the word and its use became common in accounting, finance, and human resource management operations. The emergence of Odoo ERP in 2005 by Fabien Pinckaers dwells on a stage in evolution. By comparing proprietary ERP systems and open-source, ERP Odoo stands as an integrated suite of applications with multiple modules by accessing the source code. In contrast, you cannot customize and pay for it in proprietary ERP with limited capabilities due to the source code's unavailability.

An Odoo open ERP aids the users to promote and rely in updating and customizing the vendors and business dealing activities efficiently and flawlessly. The open-source Odoo ERP contains more than 50 main modules and more than 38,000 third-party applications and plug-ins in the Odoo Apps Store.


So you may use these plug-ins for your business that are suitable for your business.  

Thus the Odoo ERP is self-hosted, and that endures in the business. This ERP can be used in all companies as per their requirements. 

Some of the features of Odoo ERP can be mentioned as below:-

- Exclusive and Peculiar applications 

- Operations are linked together for real sustainability.

- Centralized inventory management

- Involved with a SaaS model software to operate from remote locations and on-site.

- Localized elements to configure for your apt business needs.

- Capable of dealing with third-party platforms for proper business operations and management.

- IoT- based operations 

- Easily affordable by either opting for paid enterprise version or a free version for the community version. And Odoo is also interchangeable after buying the free version later to pay. 

Challenges in Odoo ERP

We find the positive and negative sides of every tool by using it. Similarly, Odoo which consists of prefabricated apps faces specific challenges though minimal. Now let’s see the adverse faces the open source ERP deals with:-

- A highly- efficient IT team is required.

As the interchange and implementation process is done internally, a highly talented and equipped IT development team is required to develop the successful progress of the open-source ERP.

- Omitting features

As open-source, ERP promotes and is up-to-date in its functionalities and features. Sometimes it omits the advanced or newly popularized features.

- Superfluous customization

Some companies and highly techy IT teams often forward unwanted customization. And that results in technical bugs. So while customization is done, it is permanently secured to be provided with standard customization instead of extra customization. 

- Possibility in underrating the cost

The Odoo open source ERP every so often includes basic assistance. At the time of upgrading or adding more features into the ERP, it requires some additional payment. For instance, you need to get third-party assistance for the implementation. Apart from including an IT expert team, backup management, etc,  you need to invest in it.

Benefits of Odoo ERP in Small-Scale Sectors

The usage of Odoo in small-scale industries can be facilitated since it consumes more work in less time. Hence small startups can add more profit by investing. People who invest in starting small businesses or small startups may reach in front of manifold tycoons for a cup of tea. Meanwhile at the end of the day while segregating all mountains of data feels difficult or takes enough time when manually done or if frequent errors happen. At the time it is easy if an ERP system is integrated for the small companies to handle the key business functions like taking up orders, inventory management, account management, etc, and to deliver automated results. However, it is necessary to integrate the ERP system at any type of company as per the size.

Now let’s move forward with the benefits of Odoo ERP in small businesses:-

- Rapid Decision-Making

Small scale companies can take quick decisions by analyzing and coordinating the inputs done through the Odoo ERP before late deadlines. Enterprise businesses can conserve their time by taking decisions related to inventory management, marketing, accounting, etc, and all other aspects of their businesses. By providing real-time data and centralized data storage over the Odoo ERP they can take vital judgments along with the business leaders. By consolidating all data the startup businesses can target what works or what doesn’t work without incurring losses and achieve a better income through it.

Moreover, these organizations could detect the company’s potential issues that lead to harm to their productivity level. And thus they can take sudden action against it without any delay or fault.

- Fosters Productivity

Small business ventures can identify and derive productivity at an expanded level by implementing the Odoo ERP into their business activities. By identifying with a single system the employees can focus on their key activities to boost their productivity. Perhaps the most significant benefit of Odoo ERP is it enhances the productivity of the entire business.

- Promotes data Transparency

In a startup, when you decide to integrate the Odoo ERP it ensures the sudden action of exporting or re-entering the data by centralized data storage. This integrated system is controlled by all the departments within a few clicks thus it reflects the errors or miscalculations found in the data. Since its ability of centralized storage promotes effective communications with the employees in different departments it reduces the errors while entering the data and also reduces the expenditure handled by the human resource management and thus maintains transparency in the organization.

- Inspires the participation of teamwork

Over the absence of an integrated system, small businesses usually find difficulty in meeting their goals due to the lack of collaboration. It is because the employees may sometimes find no time in sharing the information of different users and hence it tapers the business stability. By implementing the Odoo ERP system it can access all the information of a business to all employees in an updated form and thus enhance the business.

- Enhances a competitive market among small and medium-sized businesses

Odoo ERP system enables customizable solutions to fit the needs of all small and medium-sized businesses. The system has evolved to meet all the workflows aptly and to track all the business needs that emerge in small enterprises. And thus Odoo ERP enhances the confidence with low operations and maintains the costs further to other ERP systems. All these factors boost the small market to stay competitive among other markets.

Odoo’s Affordability towards your business

There are a lot of ERP systems out in the market but as compared to others the money you spend in your small business the Odoo keeps worthier. It is affordable and pocket-friendly to the money you invest in your venture. Its value towards your business makes you start your business with basic functionalities at a minimal cost. However, being a small business owner you can control all the IT costs and carry out its operations at a default functionality of Odoo. By implementing the Odoo ERP you can scale up your business at an affordable value since it is within a specified budget.

By implementing this Odoo ERP in your small-scale sectors you can ensure the best tracking system and can exponentially increase your business capital within no time. For effective and steady growth in your business, the best ERP that can be used is Odoo.

If you need any assistance in odoo, we are online, please chat with us.


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