Enterprise Resource Planning (ERP) software provides the digital backbone to manage key business functions in a unified way. As per recent research, 78% of businesses rely on ERP platforms with the overall market projected to grow over 6% annually, approaching $100B by 2030.
Traditionally, ERP systems involved costly on-premise installations from mega-vendors like SAP, Oracle etc. Licensing complexity, vendor lock-in and IT infrastructure needs limited ERP adoption largely to enterprises.
The shift to cloud and open source models has democratized ERP access for SMBs as well recently. 49% of small businesses now utilize open source ERP solutions given lower costs and flexibility.
In this review, we analyze the leading open source ERP platforms across two dimensions:
Functional Scope – Accounting, inventory, HR, projects etc.
Technical Base – Programming language, databases, licensing terms
Let‘s examine popular community powered options to find the best fit ERP for your growing organization.
Open Source ERP Capabilities Overview
| ERP Software | Key Apps | Languages | Databases | License |
|---|---|---|---|---|
| Odoo | CRM, eCommerce, Accounting | Python | PostgreSQL | AGPLv3 |
| ERPNext | Inventory, HR, Projects | Python, JS | MySQL | GPLv3 |
| Dolibarr | POS, Timesheets, Payroll | PHP | MySQL | GPLv3 |
| Tryton | Accounting, Subscriptions | Python | PostgreSQL | GPL |
| WebERP | Manufacturing, Assets | Perl | MySQL | GPLv2 |
| ERP5 | Workflows, eCommerce | Python | PostgreSQL | AGPL |
| Metasfresh | Procurement, Accounting | Java, JS | HSQLDB | GPLv3 |
| Axelor | HR, MFG, Marketing | Java | PostgreSQL | AGPL |
| Apache OFBiz | Multi-Org Accounting, Catalog | Java | Embedded | Apache |
Odoo – The Most Popular Open ERP
Odoo is likely the most popular open source ERP today – with over 5+ million users globally across 150+ countries.
The highlight is 500+ Odoo Apps – modular business applications covering:
- CRM – Sales campaigns, email marketing
- eCommerce – Online stores, payment gateways
- POS – Invoicing, inventory for retail stores
- Accounting – Bills, budgets, dashboards
- Manufacturing – Production planning, MRPII
- Inventory – Multi-warehouse, drop shipping
Odoo utilizes Python 3 for the backend and JavaScript for modern user experiences. It can be self-hosted on premises or installed on any cloud IaaS like AWS, GCP etc.
The Community Edition is freely available under AGPLv3 open source license. It allows unlimited users and common apps for most basic business needs.
The Online and Enterprise hosted options add proprietary modules, security hardening and enterprise grade scalability. Pricing starts around $25 per month.
With over 5000 Odoo developers worldwide and 290K+ community members, Odoo is expanding functionality aggressively.
ERPNext – The Open SMB Solution
ERPNext is a very popular open source business suite targeted at small/mid-sized firms. Originated in India and ranked among the top open ERP projects globally, it combines ease of use with depth across 30+ business domains including:
Accounting – Double entry bookkeeping, invoicing
CRM – Leads, campaigns, analytics
Inventory – Multi-site, batch tracking
Manufacturing – Production planning, costing
HR – Payroll, leaves, recruiting
Projects – Timesheets, GANTT charts
Powered by Python and MariaDB databases, the backend architecture follows modularity for easier maintenance. The frontend provides desktop and mobile experiences built on ReactJS.
ERPNext is available under fully open source GPLv3 license terms. Pricing is very democratic with hosted cloud offerings starting around $3 per user monthly.
With over 7K community forum members and 180+ country wise editions, ERPNext provides enterprise capability customized for local SMB needs.
Dolibarr ERP/CRM – Ideal for European Businesses
Dolibarr ERP is one of the most seasoned open source business platforms originating from France. With 50K+ community downloads globally, it combines:
- CRM – Contact management, sales funnels
- Timesheets – Project and task monitoring
- Accounting – Double entry bookkeeping
- Inventory – Dropshipping, barcode printing
- POS – Physical store and eCommerce
The software architecture utilizes PHP MySQL suiting shared hosting environments. However mobile apps, cloud VMs and Docker containers are also available.
Licensing wise Dolibarr is 100% open source (GPLv3) in the Community version usable by any business.
Paid subscriptions start around $5 per month providing hosted options, Dropbox backups and premium dedicated support.
For European companies, especially smaller firms, Dolibarr nicely combines CRM-ERP capabilities localized for business conventions in the continent.
Tryton – Very Lightweight and Reliable
Tryton is a lean open source ERP platform optimized for reliability across transactions, multi-site deployments etc. Some key functions provided:
- Accounting – Double entry bookkeeping, reporting
- Sales – Quotations, invoicing, shipping
- Purchases – Supplier pricing, dropshipping
- Projects – Planning, teams, timesheets
Architected in Python, Tryton follows a three tier structure separating business logic, database and interface layers. This ensures easier scaling and maintenance changes.
Licensed under GPLv3 terms fully open source, Tryton has been under development for over 13 years since starting off from a fork of Odoo v1.
Given the technical heritage and developer centric model, the application modules and UI may lack in user friendliness. But the lightweight footprint delivers performance reliability unparallelled.
For technical teams wanting a customizable solution focused purely on smooth transactions, Tryton provides an efficient foundation missing generic "marketecture".
WebERP – Free Business Management Since 1999
WebERP is one of the original open source web based business suites predating modern SaaS history. Powered by Perl, it still maintains GPLv2 open source license after 20+ years of community evolution.
Some core capabilities:
- Inventory – Multi-warehouse, batch tracking
- Finance – Double entry accounting, AR/AP
- Sales – Quotations, shipping, POS
- Manufacturing – Multi-level work orders
- Purchasing – Suppliers, drop shipping
The web frontend ensures platform independence without installs. However being pioneered in the 1990s, WebERP does follow some dated UX approaches.
Commercial support is available through third party hosting providers. Developers can modernize UI using available APIs.
For very small operations, WebERP provides a wide array of business features without any licensing cost. For smoother user experience though, you may want to budget modifications or specialized local editions.
ERP5 – Flexible Platform for Complex Workflows
ERP5 comes from Nexedi – the largest open source business solution provider in Europe. Popular across complex B2B environments, it leverages an innovative concept of business workflows:
- Financial workflows – procure-make-pay
- Fulfilment workflows – quote-plan-build-ship-bill
- After sales workflows – request-diagnose-resolve
These real world processes can be modeled visually into ERP5 without coding to enable:
- Unified data flows across systems
- Context sensitive dashboards
- Automated reporting for insights
Built on Python and PostgreSQL, ERP5 is free under AGPL open source terms.
The open model allows any customizations though some familiarity with frameworks helps. Nexedi offers paid services for large implementations including hosting options.
For technically inclined teams, ERP5 provides extreme flexibility in capturing complex workflows with easier change management and real time data unification.
Metasfresh – Automating Procurement and Accounting
Metasfresh aims to automate repetitive operational aspects across:
- Procurement – Batch orders, freight optimization
- Warehousing – Label printing, pick/pack
- Accounting – Automatic bank/tax updates
- CRM – Lead segmentation, campaign ROI
Covering the distributor-retailer ecosystem Metasfresh scales from mid-market to large enterprises.
The backend utilizes Java/Hibernate while frontends feature desktop/mobile UIs built on Vaadin and React. Both on-premise and Cloud SaaS options available.
Licensing wise Metasfresh Community edition is fully open source (GPLv3). Commercial tiers add support services, proprietary modules and legal compliance.
For European wholesalers, manufacturers and online retailers managing supply chain operations – Metasfresh aims to automate repetitive workflows especially integrating with accounting.
Axelor ERP – Exceptional Feature Breadth
Axelor ERP benefits from over 20 years of private R&D before open sourcing the platform under AGPLv3 license.
Axelor offers exceptional feature breadth across domains – all accessible within the same UI without tedious data movement. Hundreds of seamlessly integrated apps cover:
- Accounting – Bank reconciliation, invoicing
- Manufacturing – Multi-level work orders
- Inventory – Multi-site, serial numbers
- Projects – Planning, timesheets
- CRM – Campaigns, lead scoring
- HR – Global payroll, expense claims
Built using Java, React and PostgreSQL, Axelor provides free community edition for startups and smaller firms. Hosting, analytics and expert support come via paid cloud platforms.
Community developed plugins further extend capabilities – though may have less formal support structures.
For rapidly growing businesses looking to operationalize processes across domains without siloed apps, Axelor provides an enterprise yet open ERP platform ready for custom needs.
Apache OFBiz – Mature Enterprise Foundation
Apache OFBiz comes from Apache Software Foundation focused on B2B workflows. Powered by Java, it integrates seamlessly with other popular Apache projects:
Data warehousing – Unified analytics via Hadoop, Spark etc
Content management – Multi-channel publication with Cocoon
EAI – Mule and Camel integration buses
Search – Lucene and Solr engines
Covering major aspects like multi-org accounting, catalog/inventory management, order processing, CRM – OFBiz offers a sound foundation of operational capabilities.
Being open source (Apache v2.0 License), OFBiz allows any customization though Java expertise would be key.
Professional service partners provide complementary solutions for industry verticals, geographic regions etc.
For enterprise IT teams looking to build wide-ranging workflows, OFBiz offers unmatched maturity in securely unifying operational data services.
Evaluating Open Source ERP Options
Let‘s review a framework to match open source ERP capabilities to your business lifecycle stage:
Startups – Odoo, ERPNext and Dolibarr provide breadth of features relevant for early growth with easier learning curve.
SMEs – Tryton, ERPNext and WebERP suit mid-size firms well optimizing reliability over generic apps.
High Growth – Odoo, ERPNext, Axelor cover custom needs for scaling via addons/plugins and consulting partners.
Enterprise – ERP5, Axelor and Apache OFBiz allow unifying complex workflows under integrated data lakes.
Based on your phase, weigh priorities across metrics like:
- User friendliness – Ease of onboarding non technical staff
- Core performance – Transactions per second, multi-site speeds
- Ecosystem support – Developer community, partners, plugins
- IT effort – Inhouse skills needed for enhancements
- Roadmap – Project direction alignment
Every option calls for hands-on testing through available demo servers or sandbox accounts. Do utilize free trials to validate capabilities before strategic commitments.
The Outlook for Open Source ERP Adoption
It‘s an exciting time for process digitization in modern businesses – with cloud infrastructure and open source drastically improving Accessibility, Agility and Affordability aspects.
As per Gartner, over 70% of new ERP deployments would leverage public cloud infrastructure by 2025. And per an Apptio TCO study, open source ERP software can lower five year costs by over 44%.
Simplifying integration needs, customizable analytical models and community enrichments provide compelling reasons foropend source ERP adoption. Established platforms like Odoo, Axelor and ERPNext are disrupting decades old practices in enterprise software.
However every journey would need carefully evaluating tradeoffs, platform maturity, local support availability etc through proof of concepts. The democratization opens ERP access beyond just software budget optimization to streamlining business workflows.
