Why should a company opt for open source ERP?

Posted by phperp on January 27th, 2021

Companies are commonly seen to opt for ERP because of the benefits it provides to all the company. With time, ERP has evolved and the future trend in the market is for the manufacturing ERP open source. The burden of making huge payment as the installation fee for the license and every time when there is modification is solved by the Open Source software. This helps in making use of the software by simply downloading it without payment of fees. Hence, it works in lowering the cost by the elimination of any charges on renewal or any modifications. The initial license fee is high and getting it at no cost eliminates the first factor of cost which is considered for implementations of ERP. Saving the budget amount on license allows the business owner to spend more amounts on the customizations and getting better results.

 Open source manufacturing ERP helps in reducing the dependency of the vendor. One does not have to visit the vendor for fixing the small issues which help in saving time and money. It even gives control to all the companies for the customization without any restrictions from the manufacturer. It is easier for small businesses to adopt open source ERP. Adoption of the open source ERP helps in deploying the in-house team people rather than looking for outside vendors.

Now coming to challenges, it is necessary to consider the future scalability of ERP solutions. Many of the growing companies fail to recognize the time for upgrading the software and the cost involved in reimplementation to enhance the user size. Open source ERP can be easily upgraded without any disruptions. However, it is necessary to make sure that the system customizations are implemented in a proper manner.

However, we cannot deny that the ERP solutions which can be accessed for free provide only the basic functionality. Vendors charge a fee for all the advanced features which depend on the need and requirement of the business. This makes the open-source ERP solution to be one sizable investment in the long run. Hence, make a decision by considering all factors.

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