SAP vs Dynamics 365 vs Odoo: Which ERP for Your Factory?
Choosing an ERP platform is one of the most consequential technology decisions a manufacturing company will make. This guide compares the three leading platforms honestly — no vendor bias, no affiliate links, just practitioner experience.
Quick Comparison
| Criteria | SAP S/4HANA | Dynamics 365 | Odoo |
|---|---|---|---|
| Best For | Complex manufacturers >$30M | Microsoft-ecosystem SMBs $5M-$300M | Cost-conscious SMBs <$50M |
| Implementation Time | 6-18 months | 3-6 months | 1-3 months |
| 5-Year TCO (25 users) | $500K-$1.2M+ | $200K-$600K | $25K-$150K |
| Manufacturing Depth | Industry-leading | Strong (with add-ons) | Good (growing fast) |
| Customisation | Extensive but expensive | Moderate | Highly flexible |
| Learning Curve | Steep | Moderate | Gentle |
SAP S/4HANA
Strengths: - Deepest manufacturing functionality in the market (PP, QM, PM, PP-PI) - Industry-specific solutions for discrete, process, and mixed-mode manufacturing - Unmatched scalability — grows with you from $30M to $30B - Embedded analytics and AI capabilities - Strongest regulatory compliance framework
Weaknesses: - Highest total cost of ownership - Complex implementation requiring certified consultants - Steep learning curve for end users - Over-engineered for simpler manufacturing operations - Long implementation timelines
Ideal For: Manufacturers with complex BOMs (5+ levels), multi-site operations, strict regulatory requirements (aerospace, pharma, automotive), or plans to scale significantly.
Microsoft Dynamics 365
Strengths: - Seamless integration with Microsoft 365, Teams, Power BI, and Azure - Two tiers: Business Central (SMB) and Finance & Operations (enterprise) - Familiar Microsoft interface reduces training time - Strong partner ecosystem in the UK and globally - Good balance of functionality and cost
Weaknesses: - Manufacturing modules require ISV add-ons for advanced functionality - Business Central has limitations for complex manufacturing - Customisation costs can escalate quickly - Vendor lock-in to Microsoft ecosystem
Ideal For: Companies already invested in Microsoft tools, manufacturers needing CRM + ERP integration, organisations where ease of use is prioritised over manufacturing depth.
Odoo
Strengths: - Open-source core with commercial enterprise edition - Dramatically lower cost than SAP or Dynamics - Modular approach — only pay for what you use - Modern, intuitive user interface - Rapid implementation (weeks, not months) - Active community and growing manufacturing capabilities
Weaknesses: - Less mature manufacturing modules than SAP - Limited deep MRP for complex multi-level BOMs - Smaller partner ecosystem for manufacturing specialisation - May require significant customisation for complex workflows - Quality management module is basic
Ideal For: Manufacturers under $50M revenue, companies wanting quick implementation, organisations with in-house technical capability, startups and fast-growing manufacturers.
Decision Framework
Choose SAP if: You have complex manufacturing, regulatory requirements, multi-site operations, and budget for a premium solution.
Choose Dynamics 365 if: You're a Microsoft shop, need CRM + ERP, want moderate complexity with good usability.
Choose Odoo if: You're cost-conscious, want fast implementation, have relatively straightforward manufacturing, or want maximum flexibility.
What We Recommend
There is no "best" ERP — only the best fit for your specific situation. Before choosing a platform:
- Complete an ERP Readiness Assessment
- Document your top 20 business requirements
- See demos from at least 2-3 platforms
- Talk to reference customers in your industry
- Calculate total cost of ownership over 5 years (not just licence fees)
Need Help Deciding?
PPEFIX LTD provides vendor-neutral ERP selection consulting. We help manufacturers evaluate platforms objectively and choose the right fit. Get in touch.