More than ever, companies are relying on enterprise resource planning (ERP) systems to streamline their business operations. From accounting to production to sales, the all-in-one solutions drive efficiency and collaboration. But for some businesses, the price tag of an ERP solution is just too high.
Open-source ERP software is a less expensive alternative for a lot of corporations, particularly small and medium-sized businesses (SMBs). It’s modular and flexible, allowing companies to only pay for the features and customizations they as per need.
Benefits of Open-Source ERP
There are many causes to choose open-source ERP solutions for manufacturing businesses. Here are a few of the advantages:
ERP software isn’t low cost. ERP Solutions for manufacturing typically price between $75,000 and $750,000 for small-medium businesses and $1 million to $10 million for larger companies. These excessive upfront prices can cease many corporations from investing in the technology.
Open-source ERP solutions for manufacturing industry could be a cost-effective alternative because clients don’t need to pay a license price to enter the source code. That means corporations can install and customise the software totally free.
Most ERP solutions have a broad range of features and modules which might be included in their price. On the opposite hand, open-source ERP solutions include only primary functionality. Companies can decide whether or not to add free modules or pay for proprietary features.
More control over customization
When corporations need to add customizations to their ERP software as per their needs, they typically need to work with the vendor, their internal IT workforce and even an external ERP advisor. It can take time to coordinate between teams, and there will be miscommunications. And if the seller decides it can not develop specific customization, the corporate doesn’t have any other options.
With open-source ERP solutions, corporations can create customizations internally, without having to go through a vendor. Businesses also have access to ready-made or industry-specific features and modules created by consumer communities. This reduces the time and complexity of customization and offers corporations more options.
Simpler to scale
One of the most important challenges in choosing an ERP solution is contemplating future scalability. Many rising corporations notice too late that upgrading their software or increasing the number of users requires expensive reimplementation.
Open-source ERP for manufacturing industry is simpler to scale and can be upgraded more regularly without disruptions. However, that is solely the case when system customizations are correctly applied.
Demo at your personal pace
Companies that need to check out an ERP solution often have to contact a vendor, request demos and arrange an online or offline meeting. This process takes time, and the corporate will likely sit via a sales pitch.
On the opposite hand, corporations can access open-source ERP code via a publicly available database and check the software without interacting with a vendor’s sales workforce. Although the answer won’t have customizations at first, corporations will be capable to test it at their very own pace and discretion.
“High-quality” and “low cost” are words that are seldomly paired. But many low-cost open-source ERP systems provide top quality coding because they are built on earlier open-source projects which have been reviewed by numerous independent developers.
Your internal IT employees additionally have the ability to audit open source code for high quality. With closed source ERP systems, IT staff can not access the source code. They can solely test whether software program processes work accurately with enterprise data.