Odoo vs ERPNext: An Honest Architectural Comparison for Manufacturing

Originally published at hrdnsh.com by Haradhan Sharma, Senior Enterprise Operations Leader & Chief Architect.

Both Odoo and ERPNext are Python-powered, open-source enterprise resource planning (ERP) platforms. Both can handle manufacturing. However, they make vastly different architectural and commercial trade-offs.

Having spent 20+ years managing high-volume industrial operations (including 10 years heading Production Planning & Operational MIS for an export apparel manufacturer), here is an honest comparison from the factory floor and the codebase.

1. Licensing Model & Feature Gating

The fundamental divergence between Odoo and ERPNext lies in their commercial licensing strategy:

• Odoo (Open Core Model): Odoo operates a dual-license model. The Community Edition is LGPLv3, but critical manufacturing modules—MRP, Quality Control, Work Centers, Maintenance, Subcontracting, and Barcode/WMS—are strictly gated behind the proprietary Enterprise Edition (€24.90 to $30+ per user per month). If you need real manufacturing workflows in Odoo, you are forced into recurring per-seat fees.
• ERPNext (100% Free & Open Source): ERPNext is licensed entirely under GNU GPLv3. There is no "Enterprise" tier, no hidden feature locks, and zero per-seat licensing. Every core module—BOM management, multi-level work orders, time-and-action scheduling, subcontracting, and inventory FIFO control—is 100% free and open.

2. Manufacturing Capabilities Comparison

3. Customization & Developer Experience

Odoo:

• Framework: Custom Python ORM with PostgreSQL.
• Custom Modules: Powerful but highly opinionated. Upgrading custom modules across major Odoo versions (e.g., v16 to v17 or v18) often requires significant code refactoring due to underlying ORM shifts.
• No-Code Tooling: Odoo Studio is fast for non-developers, but it is proprietary to Odoo Enterprise.

ERPNext:

• Framework: Frappe Framework (Python, MariaDB/PostgreSQL, Redis).
• Architecture: Metadata-driven DocType system. Adding custom fields, child tables, automated server scripts, and custom REST API endpoints can be accomplished directly from the web interface or via lightweight Python hooks.
• Maintainability: Custom Frappe apps sit completely separate from core code, making upstream ERPNext updates significantly less prone to breakage.

4. 3-Year Total Cost of Ownership (20 Users Scale)

Let's examine realistic figures for a mid-sized manufacturing plant with 20 active ERP users (merchandisers, warehouse in-charges, production planners, accountants):

When to Choose Which Platform

Choose Odoo If:

1. You run a mixed business (e.g., e-commerce, retail storefronts, POS, CRM, and digital marketing) where manufacturing is secondary.
2. You prefer a sleek, polished out-of-the-box UI and have budget to pay perpetual user license fees.
3. You want immediate access to the 30,000+ commercial plugins in the Odoo App Store.

Choose ERPNext If:

1. Manufacturing & Operations is your core engine (apparel, discrete manufacturing, plastics, FMCG).
2. You refuse to pay per-user license fees as your factory and warehouse floor staff scales.
3. You require deep shop-floor customization, real-time inventory FIFO tracking, and complete code sovereignty.

Need expert guidance modernizing factory operations or deploying custom ERPNext / Odoo manufacturing modules? Explore technical implementation blueprints at hrdnsh.com/services/industrial-automation-erp/ or contact Haradhan Sharma directly at hrdnsh.com.