The True Value of Open Source ERPs 

Author : Bindu Madhavan

 

Enterprise Resource Planning (ERP) systems have played a pivotal role in optimizing business operations worldwide. By integrating and streamlining various processes, ERPs have enhanced efficiency, productivity, and decision-making for businesses of all sizes.

Open source ERPs, in particular, offer customizable solutions built on open code, providing businesses with flexibility and cost-effectiveness.

We at Promantia, a Bengaluru-based open source solutions company, have been at the forefront of empowering businesses with effective operational excellence through ERP implementations. 

With our in-depth expertise in open source products and ERP implementation strategies, Promantia collaborates closely with clients to understand their unique challenges and tailor ERP solutions to meet specific business needs.

By leveraging open source ERPs like Openbravo and ERPNext, Promantia enables businesses to optimize their processes in manufacturing, retail, and distribution verticals.

We  will delve deeper into the world of open source ERPs in this article and will explore their impact on businesses globally.

Additionally, we will discuss the challenges and successes associated with ERP implementations and uncover what the future holds for open source ERP solutions in a rapidly evolving business landscape. 

Before getting into the intricacies of open source ERPs, lets ask one simple question 

What are the Differences Between Open Source ERPs and Closed  ERPs? 

The table below will give you an appropriate understanding of the basic differences between open source and closed source ERPs. Many open-source ERPs are primarily driven by a single entity, which also provides warranty and support services on the core product as a subscription service.

 

Feature	Open Source ERP	Closed Source ERP
Cost	Free to use and implement, with only costs for development, customization, and support	Paid for software licenses, implementation, and maintenance
Flexibility	Highly flexible, with the ability to customize the software to meet the specific needs of the business	Less flexible, as the software is designed to meet the needs of a wider range of businesses and provides limited ability to customize
Security	Security is maintained by the core entity and the community, which can be a strength or a weakness depending on the activeness of the community/core entity. Generally as more people have access to code, issue resolution in an active open-source product is very quick	Security is maintained by the vendor, which can provide a higher level of assurance as there could be SLAs that they would be contractually expected to abide to
Support	Support is provided by the open source community or by third-party vendors. Core product support/warranty is often provided by the entity that manages the product	Support is provided by the vendor, which can be more expensive but also more reliable
Examples	Odoo, Compiere, OpenBravo,ERPNext	SAP, Oracle, Microsoft Dynamics

 

Why Should You Choose Open Source ERPs?

Choosing open source ERPs can offer numerous advantages for businesses seeking efficient and cost-effective enterprise resource planning solutions. 

The flexibility, community support, customization options, and security of open source ERPs make them appealing to organizations worldwide. 

Let’s explore the key reasons for choosing open source ERPs, backed by relevant case studies and citations that demonstrate their usefulness for big companies:

• Cost savings: Open source ERPs are typically much more cost effective than closed source ERPs. This is because you don’t have to pay for software licenses, and the costs of implementation and maintenance are usually lower.
• Flexibility: Open source ERPs are highly flexible as everything in the product is available as source code and available to be changed, which means that you can customize them to meet the specific needs of your business. This is in contrast to closed source ERPs, which are typically more rigid and difficult to customize.
• Security: Open source ERPs are often more secure than closed source ERPs. This is because the source code is available for anyone to inspect, which makes it easier to find and fix security vulnerabilities.
• Transparency: Open source ERPs are more transparent than closed source ERPs. This means that you can see exactly how the software works, which can give you more confidence in its security and reliability.
• Community support: Open source ERPs have large and active communities of users and developers. This means that you can get help and support from other people who are using the same software.
• Innovation: As communities contribute to open source product the pace and range of innovation is generally faster than in closed products. Innovations that are popular automatically draw more contributions , whereby they are strengthened and less popular ones are stunted and sometimes drop off after a few releases.

Here are some case studies showcasing how open source ERPs have helped optimize operations for huge companies all over the world

Toyota Motor Corporation and OpenTaps:

Toyota, one of the world’s leading automobile manufacturers, implemented Apache Taps, an open source ERP solution, to streamline its manufacturing and supply chain processes.

The flexibility and customization capabilities of OpenTaps allowed Toyota to adapt the ERP system to its unique operational requirements, resulting in improved efficiency and productivity. 

https://www.1tech.eu/clients/casestudy_toyota1.html

Decathlon and Openbravo:

Decathlon is today one of the world’s leading sporting goods retailers, with over 1,400 stores in more than 40 countries. They innovated in India with Openbravo Java POS and were one of the earliest user of Openbravo WebPOS. After a successful implementation in India in over 60 stores , they have expanded the usage across their global market.

https://www.openbravo.com/customers-decathlon

Zerodha and ERPNext:

Zerodha is the largest discount broking firm in India that has disrupted the Indian stock brokerage market .  ERPNext, an open source ERP system, . Zerodha with minimum customisations and the users were able pick up the user interface with minimal training. ERPNext has helped Zerodha in streamlining all HR processes into a standard workflow, which has enabled them to rapidly build forms and applications required by the company’s ever evolving business requirements.

https://erpnext.com/blog/customer-success-stories/technology-that-inspires-zerodha

How has Promantia Helped Business with Open Source ERP Solutions? 

Promantia Business Solutions excels as a premier open source ERP provider with over a decade of experience and successful ERP implementations across various industries, including manufacturing and retail. 

As certified partners of Openbravo and ERPNext, we offer tailored solutions for small and medium enterprises, backed by extensive product knowledge. With expertise in e-commerce, CRM, document management, and infrastructure, Promantia ensures comprehensive support for ERP implementations. 

Here are some case studies showcasing how Promantia’s strategies have helped companies overcome ERP implementation challenges and achieve operational excellence.

Empowering Sustainable Growth for Rangsutra Crafts with ERPNext

Problem: Rangsutra Crafts, a socially focused enterprise supporting Indian artisans, faced challenges in managing its expanding operations and artisans in Rajasthan and Western UP. Manual processes hindered productivity and coordination across offices and factories. They needed an integrated ERP solution to streamline operations and ensure sustainable growth.

Solution: Partnering with Promantia, Rangsutra Crafts implemented ERPNext across offices and factories. The phased approach led to a successful go-live for the manufacturing module, optimizing inventory management and production processes. ERPNext’s flexibility and functionalities addressed their unique needs.

Results: ERPNext empowered Rangsutra Crafts with seamless coordination, enhanced transparency, and reduced operational costs, ensuring better livelihoods for artisans and fostering sustainable development.

Promantia Empowers Decathlon’s Expansión with Openbravo ERP

Problem: Decathlon Sports India faced challenges in scaling its operations, handling increased transactions, and maintaining consistency across multiple stores. As they expanded, they needed an ERP solution that could address their specific scalability requirements and improve responsiveness in managing concurrent transactions.

Solution: Engaging Promantia, the gold partner of Openbravo, Decathlon implemented a split-system architecture with two separate Openbravo ERP instances for supply and retail operations. The solution ensured seamless integration between warehouses and stores, enabling automatic calculation and communication of crucial data. The implementation optimized batch and online performance, achieving a successful integration of Openbravo ERP in a short span.

Results: Promantia’s deep understanding of Openbravo ERP and collaborative approach helped Decathlon achieve its business expansión plans. The successful implementation formed the basis for the eventual migration to a globally standardized SAP implementation for supply-side activities. Additionally, Promantia facilitated the migration to Openbravo WebPOS for enhanced Point-of-Sale functionality across all Decathlon stores globally.

For more information and case studies please visit our website. 

Conclusion 

It is evident by now that the true value of open source ERPs lie in their cost-effectiveness, flexibility, security, transparency, and strong community support. We at Promantia, empower businesses with effective ERP implementations tailored to specific needs. 

However, successful ERP implementation strategies and challenges need careful consideration. Embracing open source ERPs unlocks immense potential for businesses, fostering growth and efficiency while offering the flexibility to adapt to evolving market dynamics and challenges. Visit our website to learn more about open source solutions and how we can help make a difference to your business