What Is Odoo? An Honest Overview for Business Owners
What Odoo is, what its apps cover, who it suits, where it falls short, and how businesses typically adopt it. Written by people who implement Odoo for a living.
Odoo is an ERP made up of separate apps that share one database. You can start with one app, say invoicing or CRM, and add inventory, manufacturing, eCommerce and more over time. Because everything sits on the same data, a sale on your website reserves stock, creates a delivery and produces an invoice without anyone retyping it.
It comes in two editions: Odoo Community, which is open source and free, and Odoo Enterprise, which is paid and adds more apps and services. We cover the difference in Odoo Community vs Enterprise.
What Odoo covers
The app list is long, but these are the ones most businesses use:
- Sales and CRM. Pipeline, quotations, price lists, online quote approval
- Purchasing. RFQs, purchase orders, vendor price lists, reordering
- Inventory. Multi-warehouse stock, routes, lots and serials, valuation
- Manufacturing. Bills of materials, work orders, work centres, planning
- Accounting and invoicing. Ledger, tax, bank reconciliation, reporting
- Website and eCommerce. A built-in site builder and online shop
- Point of sale. Retail and restaurant tills that sync with inventory
- Projects, timesheets, helpdesk, field service. For service businesses
- HR. Employees, leave, expenses, recruitment, and payroll in some countries
Where Odoo is strong
Breadth for the price. Few ERPs cover this much ground at Odoo's cost, especially for businesses under a few hundred users.
Modularity. You don't have to implement everything at once. Most of our clients start with four or five apps.
A developer-friendly framework. Customisation happens in separate modules that inherit from standard ones. Done well, it keeps upgrades manageable.
A big ecosystem. Thousands of apps on the Odoo App Store, plus the free OCA modules.
Where Odoo falls short
We'd rather you hear this from us than find out mid-project:
- Annual releases. Odoo moves fast. New versions arrive every year, and customisations need porting.
- Uneven depth. Core apps are mature. Some newer apps are thinner than the marketing suggests.
- Heavy process manufacturing. Complex formulation, batch genealogy and regulated environments may need more than standard Odoo provides.
- Very large enterprises. It's used at scale, but organisations with thousands of users and complex global consolidation often look elsewhere.
How businesses usually adopt Odoo
A typical path:
- Core phase. Sales, purchasing, inventory and accounting. Get orders flowing cleanly from quote to cash.
- Operations phase. Manufacturing, barcode scanning, quality, or eCommerce integration.
- Optimisation phase. Reporting, automation, AI-assisted processes and the long tail of improvements.
Each phase takes weeks to a few months depending on size. The Odoo implementation guide explains the decisions involved.
Is Odoo right for you?
Odoo suits most trading, distribution, eCommerce, service and discrete manufacturing businesses with between five and a few hundred users. If that's you, it's worth a serious look.
If you're not sure, we'll tell you honestly. We're an independent Odoo implementation firm, not an Odoo reseller, so we have no reason to push it where it doesn't fit.
Want to try it for real? We set up Odoo Community for free. You pay only for hosting. See free Odoo setup.
Frequently asked questions
Who makes Odoo?
Odoo S.A., a Belgian company. The software was previously called OpenERP and TinyERP. It has a large global network of partners and independent firms.
Is Odoo good for small businesses?
Yes. It's one of the most common ERPs for small and mid-sized businesses because you can start with a few apps and add more as you grow.
What is Odoo written in?
Python on the server, PostgreSQL for the database, and JavaScript (its OWL framework) in the browser.
Written by
ERP Builders Team · ERP consultants and engineers
Articles written and reviewed by the ERP Builders delivery team — functional consultants, solution architects and developers who implement, integrate and support ERP systems.
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