How Much Does It Cost To Do A Code.Org Training Open Source ERP – Reducing The Dependency On The Vendor

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Open Source ERP – Reducing The Dependency On The Vendor

Companies opt for ERP for the benefits it provides to the company. ERP has evolved over a period of time and the upcoming trend in the market is Open Source ERP. The burden of paying a heavy license fee for the software initially and every time there is a change is solved by Open Source software. The company can download the software programs and use them free of charge in this type of ERP. This helps keep costs down by eliminating fees to be paid every time there is a change or renewal. The initial license fee is also very high. This makes it easy​​​​​​ and this feature allows SMEs to enter this market due to the reduction of costs which is one of the reasons to consider the implementation of ERP for SMEs. Also by saving the licensing budget, one can spend more on customization and get better results.

Open Source ERP also helps reduce vendor dependency. The company does not have to go to the vendor for small issues which saves time and therefore money as well. It provides everything including the source code. People can choose it to quickly adapt to business needs through direct access to the source code. This gives the company control for customization without restrictions from the product manufacturer. One is not tied to the vendor and can switch consultants if unhappy with the service. Small businesses find it easier to adopt open source ERP because they can deploy their in house team instead of outside vendors. They don’t want to be tied to a particular vendor but have the freedom to run by having the code. A large part of the cost of Enterprise Resource Planning is in customization and consultants. By using this type of ERP, it can be eliminated by adapting the house and avoiding heavy software license fees.

Although it has many advantages, it also has some disadvantages. Many companies still prefer vendors to continue with the ERP system because large companies do not want to take any risks. But open source adoption is on a growth path and its demand is slowly increasing. Some of the well-known open source ERP applications from Compiere include POS, CRM and inventory management modules that offer flexibility. Many open sources offer full accounting features including accounts payable, general ledger, accounts receivable, and more.

It is available free of charge and is more flexible because the company itself can make the necessary changes without interference from the vendor. The time taken to implement an open source ERP is much less than a commercial ERP. Commercial ERP requires a lot of time and effort during implementation and at every stage as well. Open source ERP does not require much training and is more transparent than commercial ERP.

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