Custom ERP vs SAP vs Odoo

Comparison Surendra Lal, Managing Partner · · 6 min read

Quick answer

SAP is for organisations that will change themselves to match a global product and can pay for the implementation machine that comes with it. Odoo is a modular product that can be a good fit if you stay close to standard apps and have a partner who will not customise it into a corner. Custom ERP is for when your process is the point, or when the package quote to “make it work like we work” has already become a unique system you still do not own.

Who each option is actually for

SAPOdooCustom
Typical buyerLarge, process-willingSME that can stay close to standardSME whose process is the product
LicenceHeavyModular, easier to startNone; you own the code
ImplementationA programmeDepends entirely on the partnerA phased build
RiskCost and rigidityDeath by custom modulesBuilding a commodity by accident

The mistake in the first meeting

Comparing licence price to a custom quote. Implementation, data, training and the “small customisations” are the real number on every side. Odoo projects go wrong when the partner says yes to every exception and you end up with a private fork. SAP projects go wrong when nobody in the room is allowed to change the business. Custom projects go wrong when you rebuild Tally.

Who should pick what, in practice

SAP if you have a team that will change the business to match the product, a budget for the implementation machine, and a need to look like a global process. Most SME manufacturers in Kerala are not that buyer, however often the logo appears in a pitch.

Odoo if you can live near standard apps — sales, inventory, invoicing — and you have a partner who will say no to “just a small custom module” every week. Odoo goes wrong when those small modules become a private fork you cannot upgrade.

Custom if your billing, jobbing or multi-branch rules are the reason customers stay, or if the last package quote to “make it work like we work” already looks like a unique system with someone else’s name on the invoice. Then you want custom ERP you can change.

Questions to take into the first meeting

What will we still be paying in year three if we never change a screen? Who owns the customisations — us, or your module list? What does a first live slice look like that is not “everything”? How do you migrate five years of item codes that are not quite unique? If the answers are slides, keep walking.

Where the money goes after the licence slide

SAP money is licences, a large partner, and a programme office. Odoo money is a lower licence, then partner days, then the custom modules that make upgrades painful. Custom money is the build, then hosting, then change you approve. All three pay for data migration, training, and the months when two systems are true. If a quote only shows licences, it is not a quote for an implementation.

India adds a pattern we see often: an Odoo partner who says yes to every exception, or a SAP pitch aimed at a fifty-person manufacturer that will never staff the process team the product assumes. Custom pitches go wrong the other way — rebuilding Tally because someone likes the idea of “our own ERP”.

Upgrades, lock-in, and who you call in year four

SAP upgrades are a project. Odoo upgrades are easy if you stayed close to standard apps, and miserable if you own a private fork. Custom upgrades are whatever you schedule — which is freedom, and also a responsibility. There is no vendor to blame if you never budget maintenance. That is not an argument against custom. It is an argument for a named support arrangement after handover.

Ask each vendor: if we stop paying you, what still runs, and who can change a tax rate? If the answer is “you will need us”, you are leasing an operation, not buying a system. Sometimes that is fine. Write it down.

Data you will actually migrate

Item codes that are not unique. Customers spelled three ways. Opening stock that only exists in a branch manager’s book. Five years of invoices you must keep for GST. This pile is the same for SAP, Odoo and custom. It is why “go live next quarter with everything” is a story. A first slice with yesterday’s orders findable is a plan.

A first meeting script that keeps the three options honest

Tell each vendor the same story: one branch, orders and stock first, Tally stays for a phase, we will not customise a package into a fork, we want to know year-three cost if we never change a screen. Then let them talk. SAP will talk process. Odoo will talk apps and a partner. Custom will talk the slice. If anyone promises all modules, one go-live, ninety days, they are pricing a different building than yours.

Take notes on who asked about item codes. The person who asks is doing the job. The person who shows a reference logo from a different industry is doing the pitch. You need the first one in the room after you sign, not only before.

When “customisation” is already a custom ERP

Count the unique modules the Odoo or SAP partner has promised. If the list is your process, written as add-ons you will not own, you are buying a private fork with a licence on top. Price the custom build of the same slice. Often the custom number is not larger once you add partner days and the upgrade you will fear. Sometimes the package still wins because you can live near standard apps. The honesty is in counting the modules, not in the logo.

We would rather you buy Odoo and stay standard than commission custom because the word sounds serious. We would rather you commission custom than spend two years customising a package into a corner. The comparison is which of those you are actually doing. See what custom ERP is if the word is still doing too much work in the room.

Year-three cost if you never change a screen is the question that ends the logo contest. SAP still bills. Odoo still bills. Custom bills hosting and the support you chose. Add migration and training to all three before you compare. Then pick. The calendar for a first slice, on any side, is in ERP cost and timeline.

Read what custom ERP is and cost and timeline before you take three meetings that are not about the same thing.

A fifty-person plant, three honest outcomes

Stay on Tally plus spreadsheets if the pain is still one person’s afternoon. Software will not pay back. Odoo, standard apps if sales, stock and invoicing are ordinary and a partner will refuse weekly custom modules. Custom first slice if jobbing, multi-branch stock or billing exceptions are why customers stay — and the last package quote already looked like a unique system. SAP is rarely the third option at this size unless a group company is mandating it and funding the programme.

Write the outcome you actually want on the invitation, not “ERP demo”. You will get three comparable hours instead of three religions.

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