Odoo vs SAP: Choosing the Perfect Match for Your Growth Journey in Malaysia

ERP has revolutionized the way businesses of all sizes think about training and resource operations. Efficiency and integration are no longer luxuries, but essentials. 

In Malaysia, where the need to navigate increasingly complex operations and the competitive market is much higher than yesterday, the need for a powerful ERP system for businesses has never been more evident. The numbers speak for themselves, as in 2023, the ERP software market was valued at US$71.41 billion and is expected to reach a staggering US$238.79 billion by 2032. This truly “wow” growth further highlights the important role of ERP systems in modern business transformation.

Among the many leading ERP solutions, Odoo vs SAP are two names that have attracted the attention of Malaysian business owners. Odoo is an open-source powerhouse that offers flexibility and affordability in operations, appealing to businesses that value scalability and customization. Meanwhile, SAP is a veteran in the ERP space, and is celebrated for its deep, feature-rich platform tailored for large-scale enterprises.

Both systems serve their respective purposes brilliantly, but which one aligns with your business goals in Malaysia’s rapidly evolving market?

Our article below explores and compares the specific features of Odoo vs SAP. You will be able to address your current operational challenges while securing the future of your business in a market where ERP adoption is skyrocketing. Check it out right now to find the ideal answer!

Must-know about Odoo vs SAP: Comprehensive Guide

Odoo

Odoo is an open source ERP platform that has optimized the management, operations, and resource management processes of many small and medium-sized businesses. Originally launched in 2005 as an open ERP, Odoo has evolved into a comprehensive business application suite, providing effective management solutions for CRM, inventory, accounting, ecommerce, manufacturing, and more.

What makes Odoo stand out in a competitive ERP world is its modular approach, allowing businesses to start with essential applications and gradually scale up as their needs grow. This flexibility that accompanies the growth of a business allows Odoo to cater to a variety of industries and sectors, making it a cost-effective option if you are looking for customizability without breaking the bank.

Key highlights of Odoo:

• Open-source flexibility: With both community (free) and enterprise (paid) editions, Odoo offers scalable solutions for businesses of all sizes.
• Global reach: Used by over 7 million users worldwide, including a growing number of Malaysian businesses.
• Rapid innovation: Regularly updated features, such as advanced manufacturing tools, skill management modules, and improved UX.
• Cloud and on-premise options: Provides deployment flexibility to suit varying business needs.

SAP

SAP (Systems, Applications, and Products in Data Processing), is a German-based software giant with over 5 decades of experience in delivering enterprise solutions. Founded in 1972, SAP has grown to become a world leader in ERP systems, trusted by large corporations and government organizations around the world.

SAP ERP solutions differentiate themselves with the ability to handle complex, large-scale business processes. Whether managing a multinational supply chain or streamlining financial operations, SAP provides powerful tools that are powerful enough to keep your business running smoothly and efficiently. 

With advanced analytics, seamless integration capabilities, and support for compliance across multiple regions, SAP is uniquely suited for businesses that require comprehensive, industry-specific solutions.

Key highlights of SAP:

• Diverse product line: Solutions such as SAP S/4HANA, SAP Business ByDesign, and SAP Business One cater to businesses of all sizes.
• Global compliance and support: Designed for multinational operations, supporting over 50 languages.
• Integration excellence: Seamlessly connect different business processes, ensuring smooth workflow.
• Proven reliability: Trusted by global companies such as Amazon, Mercedes-Benz, and PwC for decades.

Between Odoo vs SAP: Overview Comparison Table with Key Differences

You should also read this article: Odoo vs ERPNext: Which ERP Powers Your Malaysia Business Best?

Detailed Comparison of Odoo vs SAP: Key Differences You Should Not Miss

Battle of Costs: The Real Price Tag of Odoo vs SAP

Odoo

Odoo pricing is considered one of its strongest selling points, defined in multiple plans to suit businesses of all sizes, from startups to large enterprises. This system offers transparent pricing per user and stands out with the flexibility to pay for the modules you need.

Our breakdown below will give you a clearer view:

Some key notes about Odoo pricing:

• Subscription options: Monthly or annual contracts, allowing you to freely switch packages, upgrade, or scale your usage based on your business needs.
• Free community edition: This edition allows businesses to start with ERP for free, get familiar with it, and gradually upgrade to the Enterprise edition as they grow.
• Updates and upgrades: Always included in the subscription fee, ensuring your system is always up to date.

The total cost of ownership (TCO) of using Odoo is also significantly lower due to:

• Modular structure: Pay only for the apps you use.
• Cloud deployment options: Minimal infrastructure costs.
• Free trial: Test features before committing financially.

SAP

SAP caters to enterprise-level needs but requires a substantial investment. Here’s the localized breakdown:

Besides that, there are some additional details you really need to keep in mind when learning about SAP pricing:

• Implementation: Typically costs RM 222,500 - RM 2.225 million.
• Add-ons: Ranges from RM 2,225 to RM 222,500, depending on the features.
• Maintenance: Annual costs of RM 2,225/user for perpetual licenses.
• On-premises hosting: Involves significant hardware expenses.

User-Friendliness Comparison: Odoo vs. SAP

Odoo

Odoo stands out in its user interface, boasting a full web-based platform that works seamlessly across devices. Its interface is clean, intuitive, and easy to navigate, even for users new to ERP systems. 

With mobile compatibility and a native app for Android, Odoo ensures users have anytime, anywhere access to critical business processes. Odoo’s modular design is also a unique factor that simplifies the deployment process for users. Businesses can start small, deploying only the applications they need and gradually scaling up as requirements change.

SAP

SAP, especially SAP Business One, offers an incredibly powerful ERP experience, but its complexity can be daunting. While it also offers native mobile apps for both Android and iOS, the lack of a full web interface limits its usability for modern workflows. 

The user experience that SAP has built is suited for businesses with structured processes and dedicated IT teams that can handle its extensive configuration options.

Implementation is another hurdle. SAP Business One requires a lot of resources and time to complete its comprehensive setup process. While this makes it an excellent tool for large corporations, smaller businesses may find it overwhelming and resource-intensive.

Verdict

An overview comparison table between Odoo vs SAP:

Customization Showdown: Odoo vs SAP - Which Fits You Best?

Odoo

Odoo’s strength lies in its incredible adaptability, offering a platform where creativity and business needs meet seamlessly. Its modular architecture can be thought of as building blocks for your enterprise - start small and customize as your scale. 

Just add what you need for your small business today, and expand effortlessly into ecommerce tomorrow. That’s what Odoo promises to do for you, even if you don’t have a large team of coders and IT developers.

For example, a growing manufacturing company can integrate Odoo’s inventory module to align perfectly with their existing workflows, tweaking features such as barcode scanning or quality checks - all without diving into complicated coding. 

Odoo’s open-source framework goes beyond surface-level tweaks, giving you the ability to create entirely new processes, including designing custom dashboards or embedding local tax rules to create Malaysian-compliant e-invoicing.

SAP

SAP stands tall as a robust system, built for enterprises that prioritize standardization and structure. However, when it comes to SAP customization, while possible, it can sometimes feel like a maze. Businesses really need expert advice and significant resources to tailor the software to their unique needs.

A global supply chain company using SAP can certainly implement a custom shipping process. However, you must be aware that it will require weeks of work from high-quality developers, not to mention a significant budget allocation. 

SAP’s focus remains on preconfigured, reliable, and stable processes, but the trade-off of its limited agility in adapting to unique or rapidly changing business environments.

That said, SAP thrives in situations that require uniformity and control. SAP's ready-made and robust templates are good, no one can deny that, but you should consider using it in a context where custom conditions are not a top priority.

Verdict

A head-to-head table between Odoo vs SAP customization is shown as below:

Integration Capabilities Between Odoo vs SAP: Which is Better?

Odoo

Imagine a scenario: you can connect almost all your business tools like pieces of a puzzle. Yes, it’s not a dream, but it’s actually what Odoo can do for your business. Its open-source framework allows integration with a myriad of third-party applications, from payment gateways to CRM systems, with remarkable ease.

• Business flexibility: Whether you’re running an e-commerce store or managing a retail chain, Odoo allows you to easily integrate with platforms like WooCommerce, Shopify Plus, or even localized payment solutions.
• API accessibility: Need a custom connection for niche software? Odoo’s API framework ensures you can customize the integration to suit your business’s unique workflow.
• Cost-efficiency: Compared to large enterprise systems, Odoo’s modular approach reduces implementation costs, making it accessible to small and medium-sized businesses. 

For example, a logistics company in Malaysia integrated Odoo with local delivery platforms, creating a seamless order-to-delivery workflow. This flexibility allows businesses to grow without being constrained by rigid systems.

SAP

SAP offers powerful integration tools but requires a deep understanding of the technology, with integration costs being significantly higher than Odoo. SAP solutions are primarily aimed at businesses with complex and multinational operations.

• Comprehensive ecosystem: SAP integrates seamlessly with its suite of products, offering robust connections across finance, procurement, and supply chain.
• Pre-built connectors: For large organizations, SAP offers pre-configured integrations to enterprise tools, reducing downtime during deployment.
• Resource-intensive: Despite its many capabilities, SAP requires significant technical expertise and investment, limiting SAP’s suitability for smaller businesses.

Verdict

A comparison table about integration of Odoo vs SAP is presented as below:

Customer Care Showdown: Who Stands by You Better Between Odoo vs SAP?

Odoo

Odoo’s support ecosystem thrives on a vibrant community and comprehensive resources, providing a satisfying and supportive experience for businesses of all sizes and industries.

• Community-centric innovation: Odoo has a network of developers, users, and partners who are actively contributing every day to improve your own ERP system. Odoo’s constant and unique flow of innovation makes tools like forums and GitHub repositories treasure troves of solutions.
• Enterprise support channels: For businesses with high stakes, Odoo offers dedicated support for Enterprise users. From managing complex integrations to resolving critical bugs, Odoo’s dedicated team ensures you’re never left behind.
• Accessible training & documentation: Whether you’re new to Odoo ERP or a seasoned tech pro, well-structured training programs and documentation simplify integration and troubleshooting. No technical jargon - just simple, practical instructions.

SAP

SAP offers a polished, globally standardized approach to support - but not without a cost. SAP's model caters primarily to large enterprises, leaving smaller businesses to navigate higher barriers.

• Structured global network: SAP support is professionally managed and standardized, ensuring a consistent service experience no matter where you are. This makes SAP a trusted choice for multinational corporations operating across multiple time zones.
• High-end resources: From detailed knowledge bases to comprehensive training programs, SAP leaves no stone unturned in offering resources. Of course, the platform often requires a higher level of technical expertise than average, making DIY solutions difficult for smaller businesses.
• Premium pricing, premium experience: SAP support comes at a high cost. However, its comprehensiveness makes large-scale enterprises willing to pay high costs to receive quality and timely support, especially in the context that technical errors of ERP systems can greatly affect the daily operations of a large company.

Verdict

A comparison table between Odoo vs SAP in customer support:

Industry-specific Features of Odoo vs SAP: Which is for You?

Manufacturing

Odoo

Odoo Manufacturing has made its mark among all users as an ideal solution for small and medium-sized manufacturers looking for simplicity and efficiency. Its key features include:

• Bill of Materials (BOM): Odoo allows users to create and manage multi-level BOMs with ease, streamlining the manufacturing process. It simplifies the tracking of raw materials and finished goods, ensuring transparency and accuracy.
• Integrated inventory and sales: Seamless integration with Odoo’s inventory and sales modules ensures real-time data sharing across departments. This eliminates redundancy and speeds up decision making.
• Custom workflows and planning: Small and medium-sized manufacturing businesses benefit from features like production scheduling, work orders, and Kanban-style task tracking, which make process management intuitive and visual.

SAP

SAP manufacturing solutions are designed for large enterprises that require precision, scalability, and advanced analytics. The core strengths of the solution include:

• Real-time production monitoring: SAP provides live dashboards with IoT integration, allowing managers to track details at every stage of production. This helps businesses quickly identify bottlenecks and optimize resource allocation.
• Industry 4.0 compatibility: With tools that support automation and digitalization, SAP enables businesses to align with modern manufacturing trends such as predictive maintenance and robotics integration.
• Scalable for complex operations: Whether managing global supply chains or complex production lines, SAP handles complexity with features such as advanced production scheduling and workforce optimization.

However, we would like to note again that SAP's extensive functionality often comes at a higher cost and time to develop, requiring significant investments in training and resources.

A resume table about manufacturing of Odoo vs SAP:

E-commerce

Odoo

Odoo e-commerce is ideally designed for small and medium-sized businesses looking to establish or expand their online presence.

• Effortless store creation: With the drag-and-drop website builder, businesses can design and launch online stores without much technical expertise.
• Unified platform: Integration with Odoo’s CRM, inventory, and accounting modules ensures smooth operations, from order placement to fulfillment.
• Customizable features: Businesses can add features like multi-payment gateways, shipping integrations, and promotional tools, making it flexible for niche markets.

SAP

SAP Commerce Cloud (formerly Hybris) caters to businesses that prioritize customer engagement and operational scalability.

• AI-driven personalization: SAP leverages machine learning to deliver customized shopping experiences, from product recommendations to dynamic pricing.
• Global reach: With support for multiple languages, currencies, and regions, SAP helps businesses scale internationally without losing local relevance.
• Multi-channel consistency: SAP centralizes sales channel management, ensuring consistency across web, marketplaces, and social media.

A resume between Odoo vs SAP about e-commerce:

Accounting

Odoo

Odoo excels at making accounting a simple and quick task, providing businesses, especially small and medium-sized ones, with tools that simplify financial management without requiring a lot of resources.

• Smart automation for everyday accounting: Tasks like invoicing and tracking payments are automated, minimizing manual errors. Invoices are generated immediately after sales transactions are confirmed - it’s that seamless.
• Seamless data synchronization across modules: Odoo’s accounting module is not just a standalone tool; it’s part of an interconnected suite. When inventory levels need to be adjusted due to sales or payroll processes trigger expenses, every update is reflected in real-time in the financial system.
• Affordable financial reporting tools: With financial dashboards and pre-configured templates, SMEs can access and receive professional-grade insights without expensive customizations. Even better, these reports are intuitive and help non-accounting stakeholders make informed decisions.
• Flexible localization features: Odoo supports customization for local compliance, including GST/SST requirements, ensuring businesses stay on top of their tax obligations.

SAP

SAP is the gold standard for large enterprises, offering a rich ecosystem of tools designed for organizations with complex financial processes:

• Precision for global compliance: From managing multi-currency transactions to adhering to global tax standards, SAP is engineered to ensure businesses meet regulatory demands across regions, including Malaysia's financial requirements.
• In-depth cost analysis and resource tracking: SAP's control tools enable businesses to track project costs, analyze resource usage, and optimize budgets, giving large enterprises unparalleled financial control.
• End-to-end workflow integration: By linking financial data with operational workflows - like procurement and supply chain - SAP ensures that every cost and revenue stream is aligned with business goals.

Accounting features showdown between Odoo vs SAP:

Inventory 

Odoo

Odoo serves as a smart and simple-to-use inventory management solution.

• Live inventory adjustments and alerts: Odoo’s inventory system works in real-time, ensuring inventory levels are always up-to-date. Whenever a transaction – whether it’s a sale, purchase, or internal transfer – is processed, Odoo automatically adjusts inventory quantities. It also automatically alerts businesses for low inventory levels, helping them prevent stock outs or overstocking.
• Barcode-driven efficiency: Odoo 18 integrates barcode scanning for warehouse operations, allowing warehouse workers to efficiently pick, pack, and ship products with a simple scan. For businesses with multiple storage locations, Odoo’s barcode system simplifies the process of tracking inventory movements, giving users flexibility.
• Multi-warehouse support for seamless operations: Odoo’s inventory management extends to supporting multiple warehouses. You can proactively track and manage inventory across multiple locations, ensuring real-time updates on inventory levels at each location.

SAP

With SAP, this is a complex system for large-scale inventory operations. Some of the outstanding features of this system:

• Advanced demand forecasting: SAP takes inventory management to the next level with advanced demand forecasting capabilities by using historical data, seasonal trends, and market dynamics to predict demand. This forecasting system minimizes overstocking and shortage issues, ensuring businesses maintain optimal inventory levels and minimize storage costs.
• Integrated logistics and real-time supply chain visibility: Unlike Odoo's simple approach, SAP offers deeper integration with supply chain partners and logistics providers. By integrating with real-time tracking systems, using SAP, you can see every step of the process and respond immediately to any disruptions.

A resume table of Odoo vs SAP about Inventory:

Product Lifecycle Management

Odoo

Odoo is a collaborative and flexible PLM management tool - according to our team of experts and customers.

• Centralized Bill of Materials (BOM) management: Odoo provides a central hub to manage all product data, including BOMs, engineering change orders (ECOs), and product variants. This functionality allows businesses to control product specifications throughout the lifecycle, ensuring that teams work with up-to-date information at all times. It is ideal for fast-moving industries that need to rapidly iterate and update products without disrupting production.
• Third-party CAD system integration: Odoo supports integration with third-party CAD tools, allowing design and engineering teams to seamlessly exchange data between product design and manufacturing teams. This integration speeds up the product development process and reduces the likelihood of costly design errors.
• Version control for product changes: Managing product changes is made easy with Odoo’s version control system, which tracks modification to both BOMs and product design.

SAP

SAP offers simple PLM management with essential features.

• Basic BOM management and change tracking: SAP’s PLM capabilities focus primarily on BOM management and basic product change tracking. While it covers the essentials of product data management, it lacks the advanced features that Odoo offers, such as deeper integration with engineering tools and more complex change management processes.
• Limited product design integration: Unlike Odoo, SAP does not offer extensive integration with third-party CAD systems. While the system supports basic data management, businesses looking for seamless collaboration between design, engineering, and production teams may find SAP’s PLM tools lacking in this area.
• Simplicity for less complex product lines: SAP’s PLM capabilities are ideal for businesses with less complex product lines, where the need for deep integration and frequent product iterations is limited. The platform’s functionality provides a solid foundation but may not meet the needs of industries requiring continuous product innovation.

A resume table of Odoo vs SAP about PLM:

QMS (Quality Management System)

Odoo

QMS is one of Odoo’s strengths, when comparing Odoo vs SAP.:

• ISO9001 compliance tools: Odoo includes built-in tools for businesses to maintain ISO9001 certification, ensuring that quality management processes adhere to international standards. The system automates tasks such as internal audits, documentation, and reporting, streamlining the process of maintaining compliance.
• Quality checks at every stage of production: Odoo offers custom quality checks at every stage of production, helping businesses ensure that only products that meet pre-defined standards are processed. This proactive approach to quality control helps reduce errors and increase customer satisfaction.
• Traceability and reporting for complete transparency: With Odoo, businesses can track quality checks and product traceability across the entire production chain. This provides complete visibility, which is especially useful for industries that regularly conduct product recalls or quality audits.

SAP

For global standards, SAP is an ideal choice when comparing about QMS between Odoo vs SAP:

• Advanced reporting and compliance tracking: SAP’s QMS includes advanced reporting tools to track quality metrics across multiple manufacturing locations, ideal for multinational companies. It ensures that quality standards are always met, regardless of location, and that businesses comply with international regulations and certifications.
• Automatic Corrective and Preventive Action (CAPA): SAP’s QMS includes a powerful CAPA system that helps businesses respond quickly to any quality issues, minimize errors, and prevent future problems. This feature is designed for larger organizations with more complex operations that require immediate corrective actions at the enterprise level.
• Comprehensive supplier quality management: SAP also includes tools to track and manage the quality of products received from suppliers. This ensures that raw materials and components meet the required standards before being incorporated into the final product, minimizing the risk of quality issues downstream.

A resume table of Odoo vs SAP about QMS:

Top 4 Key Criteria You Must Consider Before Deciding Odoo vs SAP

When deciding between Odoo and SAP, it is essential to consider factors that are directly related to your company’s needs. Here are four key criteria to guide your decision:

Company size and growth trajectory

If you are a small or medium-sized business with growth ambitions, Odoo may be a better fit. It is a flexible, cost-effective solution that can scale as your business grows. SAP, on the other hand, is designed for larger businesses with complex operations and significant resources, making it more suitable for businesses that require advanced functionality from the start.

Internal expertise and IT resources

Consider your team’s technical capabilities. Odoo is easier to implement and requires less in-depth IT expertise, making it ideal for businesses with smaller IT teams or limited technology resources. On the other hand, SAP requires significant in-house expertise for customization and maintenance, making it more suitable for companies with large IT departments or access to outside consultants.

Budget and cost flexibility

Evaluate your budget constraints. Odoo is more affordable with lower initial costs, making it a great choice for businesses that need robust ERP capabilities without a significant financial investment. On the other hand, SAP comes with higher upfront costs and ongoing maintenance fees, which can be justified for larger organizations with larger budgets and a need for enterprise-grade features.

Industry-specific requirements

Consider whether your industry has specific needs that require a specialized solution. Odoo offers robust industry-specific modules and customizations, which are especially suitable for small and medium-sized businesses in the retail, manufacturing, and service sectors. However, SAP excels at providing tailored solutions for complex, large-scale industries, including manufacturing, logistics, and global enterprises.

Final Thoughts

In conclusion, choosing between Odoo vs SAP depends largely on your company’s size, resources, and specific industry needs. By carefully considering your business requirements, you can make an informed decision that best aligns with your long-term goals and operational needs.

For custom consultation about Odoo implementation, don’t hesitate to contact us immediately!