Guide to Open Source ERP – Everything You Should Know

Open Source ERP Guide

Guide to Open Source ERP – Everything You Should Know

Guide to Open Source ERP – Everything You Should Know 1280 720 Visvendra Singh Visvendra Singh

From small businesses to large enterprises, it is very critical to have efficient systems in place. However, businesses might find it quite challenging to implement licensed ERP systems as they might not fit as apt as they expect. Here comes the role of Open-Source ERP to solve the bottlenecks.

Enterprise Resource Planning is a crucial tool for businesses to manage their operations and activities easily. Be it managing orders or tracking invoices, the ERP comes as a savior to offer information promptly. While various kinds of ERP software are available in the market, ERP always remains the best choice due to its wide range of advantages. Open-source software being cost-effective and scalable offers businesses various advantages to implementing it. As there are a lot of benefits that come with it, this blog talks about the Top 5 Reasons to Implement open-source ERP.

What is Open-Source ERP?

ERP software is a type of ready-to-use software that is available for free and can be used by businesses of any scale to manage various aspects of their operations. It typically includes modules for accounting, human resources, customer relationship management, and supply chain management, and even businesses can modify and add modules based on specific business requirements. 

Businesses can use ERP software to save money on software costs, customize the software to fit their specific needs, and get support from the large community of users and developers that surrounds most open-source projects.

Pros and Cons of Open-Source ERP Software?

Open-source ERP software can be a great option for businesses that want to have more control over their software and customizations. However, there are both pros and cons to using source platforms when it comes to ERP solutions.


  • Open-source ERP software is typically less expensive than proprietary software since there are no licensing fees. 
  • It is also often more customizable than proprietary software since it can be modified to fit the specific needs of a business. This can help businesses to implement any kind of module as per their requirement.
  • Open-source software makes ERP more scalable to use when your business works in a dynamic environment where you need a robust solution to fit your growing business needs.


    • The open-source platform might not be as competitive in terms of features as what comes in licensed ERP software.
    • It might become challenging to find prompt support if ERP runs down into any issue as you need to hire a developer to solve the same.
    • The costs of training a user might be high.
    • Open-source ERP might cause business risks if handled by an unqualified team of developers.

Pricing considerations

Open-source ERP systems are often seen as a more affordable alternative to traditional ERP systems, but there are several factors that one should consider before choosing one.

    1. Price Range: The licensed software may cost you more in both long and short terms as you need to renew it on a monthly or yearly basis to keep using it. However, in open-source software, you need to bear the one-time cost and even if you require any further updates then you can pay for the same going forward.
    2. Hardware Costs: In the case of open-source software, you need to host either on your server or have to choose a reliable partner. You need to access the costs and then choose the one that fits your budget.
    3. Development Cost: In some scenarios, you might save quite good money if your business requirements are not that vast as you get the solution developed cost-effectively as compared to other alternatives.
    4. Cost of Ownership: When comparing open-source ERP to other alternatives, it’s important to look at the TCO over the life of the system. Open-source software systems may have a higher initial cost, but they often have lower ongoing costs, such as maintenance, support, and upgrades.

Top 5 Reasons To Implement Open Source ERP

Here are several reasons to implement open-source ERP:

  1. Cost savings: ERP software is usually free or very low cost. This can save your business a lot of money, especially if you are a small or medium-sized business.
  2. Increased flexibility: ERP software is very flexible and can be customized to fit the needs of your business.
  3. Improved security: ERP software is often more secure than proprietary software because the code is open for everyone to see.
  4. Better support: ERP software typically has better support than proprietary software. This is because there is a large community of users and developers who can help you if you have any problems.
  5. You Own the Code: Open-source ERP software can be a good option as you get access and ownership to the code which you can leverage without paying any overhead costs. This is because if needed, you can improve the software over time.

Top 5 Best ERP open-source frameworks

  1. Moqui FrameworkMoqui Framework is an open-source framework that is adaptable, flexible, scalable, and secure. It is used to build enterprise solutions including ERP systems, and is an enterprise-ready application framework that is customizable according to your specific business needs.
  2. Apache OFBiz: OFBiz is another top-performing comprehensive ERP framework that includes all the core features you would expect from an ERP system. It is very flexible and can be easily customized to meet the specific needs of your business.
  3. Odoo Open ERP: Odoo Open ERP is a comprehensive ERP framework that covers all the major areas of ERP, including accounting, CRM, inventory management, project management, and more. It is very user-friendly and can be easily customized to fit the specific needs of your business.
  4. Tryton ERP: It offers ease of convenience to users to install only those ERP modules that they need for their business purposes. In terms of support also, ample documentation is available on the web to assist developers in deploying it.
  5. xTuple: xTuple is a comprehensive ERP framework that offers a wide range of features and functionality. Based on a client-server model, it is easy to deploy.


This blog has covered extensive information about open-source ERP solutions which will help you get a clear vision of the same. Since it offers a lot of benefits, you can look forward to implementing any one of the listed ERPs in your business.


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