Optimising your business inventory management is highly important. It cuts operational costs, makes things run more efficiently, and ensures customer satisfaction.
Odoo has applications and modules to make your inventory or stock management easier and to keep everything moving smoothly from suppliers to customers.
This blog will go through ten ways you can make your inventory work better with Odoo ERP software. And the best part is, you can customise it to fit exactly what your business needs.
But before you explore all that, let’s talk about why having optimised inventory matters so much.
Proper inventory management means saving money while making sure you always have what your customers want. Businesses can get the perfect balance of stock using software such as Odoo ERP software. This helps to reduce surplus stock and improve efficiency.
The Significance of Inventory Optimisation
- Having the exact amount of stock you need helps save cash and prevents unnecessary waste. With Odoo ERP and similar tools, you can pinpoint the perfect amount of stock, slashing extra expenses.
- When you manage your inventory effectively, you ensure that you always have what your customers are looking for, right when they need it. This not only keeps them satisfied but also encourages them to remain loyal to your business.
Why should you use Inventory management software for optimising your business inventory?
- Inventory management software makes managing stocks easier, boosting business efficiency and cuts down costs.
- By using real-time info and analytics, businesses can make better decisions. This helps them fine-tune their inventory and stay on top of market changes.
Here are 10 ways to make your inventory work better with Odoo:
Predicting Demand:
With Odoo’s demand forecasting, you can guess what you will need in the future. This helps keep just the right amount of stock. By looking at past data and what’s happening now, you can avoid running out of things or having too much. That saves money and keeps customers happy.
Odoo’s Master Production Schedule (MPS) uses past and current manufacturing data to guess what you will need next. To use it:
Here are the steps for using Odoo’s Master Production Schedule (MPS).
- Turn on MPS in the settings: Head to the Manufacturing app, then Configuration, and Settings. Flip the switch to activate the Master Production Schedule. Don’t forget to save.
- Start your MPS plan: Go to Planning, then Master Production Schedule, and hit Add a product.
- Fill in your products: Add your products to the MPS. Decide on safety stock, minimum, and maximum amounts for each period.
- Choose what you want to see: Decide what info you need in the MPS view.
- Guess what you will need: Estimate how much you will need for the time ahead in the Forecasted Demand Row.
- Fill up your stock: Decide how much to order based on what you need and other forecasts.
- Order more stock: Place orders based on how long it takes for things to arrive.
- Keep track of orders: Keep an eye on requests for price quotes or orders in the Actual Replenishment cell.
- Change things if needed: Adjust how much you are ordering if you need to.
- Keep an eye on the colors: Understand what the colors mean to keep track of your orders and stock levels.
Efficient Replenishment:
With Odoo, you can make restocking easier, saving money by not having too much extra stock lying around. Odoo also helps make customers happier by making sure orders are filled on time.
Here’s how it works:
- Restocking Report: Look at this report to see which products are running low. Odoo figures this out by looking at what has been ordered and what has been delivered. If there is no set rule for restocking, it uses this info.
- Restocking Rules: You can make rules in the report or in the product settings. These rules say how much of something you should always have. When the stock gets too low, Odoo automatically makes an order for more.
- Make to Order (MTO): If you make custom stock and don’t usually keep much in stock, this is for you. Whenever someone orders something, Odoo makes a note to order it for you, even if you don’t have any on hand.
Automated Purchasing for Efficiency:
Automating purchases is super important for keeping your inventory in check. Odoo’s Inventory Module works hand-in-hand with purchase management to make things smooth. It helps by automatically creating purchase orders, keeping an eye on how well your suppliers are doing, and making sure you are managing those relationships right. This means you will always have the right stock when you need it, and you won’t have too much lying around.
With Odoo 17, things get even easier. Businesses can make their procurement process simpler, saving time and money. Some cool features include setting up integration easily, automatically ordering more stock when you are running low, managing suppliers, setting up workflows just how you like them, and checking out reports to see how things are going.
Here are some of the best things about it:
- Odoo Inventory and Purchase Management work together smoothly.
- It automatically orders more stock when you need it.
- You can keep track of how well your suppliers are doing.
- You can set up workflows to make everything go faster.
- Reports help you see how things are going and where you can improve.
Just-in-time Inventory Management:
Keep your inventory slim and costs low by using Odoo’s Lean Inventory Management, also known as Just-In-Time (JIT) management. This feature is extremely useful for businesses that make stock because it helps make sure you only make what you need. That means less chance of stock going bad or being wasted, which saves you money and makes things run smoother.
Here’s how to set it up with Odoo:
- Alerts for Restocking: Get notifications when you are running low on stock or when your suppliers need time to get more.
- Smart Scheduler: Make things happen automatically based on what you have got and what people want to buy.
- Forecasting: Figure out when you will run out of stock by looking at what’s been ordered, what’s been shipped, and what’s being made.
- Automatic Ordering: When your stock is getting low, Odoo can automatically ask your suppliers for more stock.
- Customised Settings: You can decide how much of something you always want to have around. When you get too low, Odoo will make sure to order more, move stock between warehouses, or make more if you are running low.
Smart Inventory Management:
Avoid running out of stock with Odoo’s smart inventory management. It is all about making sure you have enough stock to fill orders when they come in. This keeps customers happy and keeps them coming back for more. Using Odoo Inventory for safety stock management is like having a really organised and smart warehouse. It helps make sure you have got what you need, when you need it.
It offers features like:
- Lead Time Management: Sometimes, suppliers take longer than expected to deliver stock. Odoo Inventory keeps track of this and adjusts accordingly so you don’t run out.
- Automatic Restocking: When your stock gets low, Odoo ERP Inventory automatically creates orders to get more stock. This helps ensure you always have enough safety stock on hand.
- Advanced Routes: Odoo Inventory can figure out the best way to get stock from your suppliers to you. It is like having a GPS for your inventory, making sure everything gets where it needs to go in the most efficient way possible.
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Vendor-Managed Inventory (VMI):
Keep just the right amount of stock on hand and avoid running out with Odoo’s Vendor-Managed Inventory (VMI) tools. It is all about working closely with your vendors to make sure you have what you need when you need it, without having too much sitting around. This helps you save money and stay competitive.
With Odoo’s VMI feature, you can set up different ways to handle vendor bills, such as:
- Received Quantities: This policy makes sure you only pay your vendors once you have received some of the stock you ordered. It is a big part of how VMI works because it keeps your cash flow in check.
- 3-Way Matching: With this, you only pay your vendors after you have received some (or all) of the products you ordered, and everything matches up with what was agreed upon. This helps make sure you are only paying for what you actually got.
These features make it easier for companies to manage their inventory and payments, making the whole VMI process smoother and more efficient.
Real-time Data Analytics:
Make managing your inventory easier with Odoo’s live data analysis tools. These tools give you important information right when you need it. They help you make smart choices and grow your business in a sustainable way. How? By giving you a clear picture of what’s going on with your inventory, all the way from ordering to selling.
Here’s how to use Odoo’s live data analysis tools for inventory:
- Tracking Inventory in Real Time: Odoo Inventory keeps track of how much stock you have at all times. This means you always know exactly what’s in stock.
- Automatic Ordering: When your stock gets low, Odoo ERP Inventory automatically creates orders to get more stock. This helps make sure you never run out of the things you need.
- Smart Routes: Also, Odoo Inventory helps you figure out the best way to get stock from your suppliers to you. This helps cut down on how long it takes for things to get to you.
- Live Analytics: Odoo’s BI module gives you live updates on what’s happening with your inventory. You can see if there are any patterns or weird things going on.
- Working with Other Modules: Odoo’s inventory system works with other parts of your business, like your point of sale or your online store. This means you can see what’s happening with your inventory no matter where you are selling stock.
- Mobile Access: You can use Odoo Inventory on your phone or tablet. This means you can manage your inventory even when you are not at your desk, using real-time data to make smart decisions.
Dropshipping:
Make your retail business stronger by using dropshipping with Odoo. Dropshipping means you don’t have to keep products in stock. Also, this means you don’t need a lot of money upfront, you don’t have to worry about managing a big inventory, and you can offer more stock to your customers. But there are some problems with dropshipping too. Sometimes you can’t control the quality of the products or how long it takes for them to get to your customers. You also have to rely a lot on your suppliers, and there’s more competition, which can mean less money for you.
Odoo Inventory has some useful features for dropshipping businesses, like:
- Lead Time Management: Odoo Inventory helps you keep track of how long it takes for products to get to you from your suppliers.
- Automatic Ordering: Also, when you are running low on stock, Odoo ERP Inventory automatically creates orders to get more stock.
- Advanced Routes: Additionally, Odoo Inventory helps you figure out the best way to get products from your suppliers to your customers.
These features help dropshipping businesses manage their inventory better, avoid running out of stock, and make sure orders get to customers on time.
Batch Tracking:
Make sure your products are top-notch and easy to manage with Odoo’s batch tracking feature. It helps you keep track of where your products came from and where they’re going. This is important for following rules and making sure your inventory is correct. But, there are some things to watch out for. It might mean more paperwork and keeping track of a lot of batches at once. And sometimes, the data might not match up exactly. But it is important to deal with these challenges.
Here’s how to track products by batches:
- Turn on the Lots & Serial Numbers feature so you can keep track of products with special numbers.
- Go to the Inventory app, then Configuration, and Settings.
- In the Traceability section, check the box next to Lots & Serial Numbers, then click Save.
- Use batches to manage products that come in big groups, like clothes or food.
- Batches help you keep track of products as a group, which makes it easier to manage things like recalls or when products expire.
- Manufacturers give lot numbers to groups of products that are similar. This helps track them from the start to the end of their journey.
RFID, or Radio Frequency Identification:
RFID, or Radio Frequency Identification, is a technology used to make inventory management easier. With Odoo’s RFID feature, you can track your products in real-time as they move through your supply chain. This helps you run your business better and keeps everything safe. But there are some things to think about, like it can cost a lot to set up at first, and you need to make sure it works with your other systems. Also, some people worry about privacy.
Here’s how RFID works with Odoo:
- Automatic Tracking: Products have special tags that let you track them as they move around your warehouse.
- Less Mistakes: RFID makes it less likely that you will make mistakes when managing your inventory because it updates automatically.
- Faster Info: Also, RFID tags let you scan things more quickly, so you can make decisions faster.
- More Security: RFID helps keep your stock safe by tracking it in real-time and letting you know if anything goes missing.
- Works with Other Systems: You can use RFID data with other parts of your business, like your planning or your customer info, to get a better idea of what’s going on.
- To use RFID with Odoo ERP software, you need to buy special equipment (like scanners and tags) and set up your system to use the data they collect.
Odoo is a robust tool for making your inventory work better. Moreover, it has tools to make things easier and help you do your job better. It can figure out what you will need in the future and give you updates on what’s happening right now. This helps you keep just the right amount of stock on hand, save money, and make your customers happy.
Also, with Odoo ERP software, you can handle tricky inventory stock without any hassles. This sets you up for long-term success and makes your business stronger. Get in touch with us at Envertis, an experienced ERP solution provider and a gold Odoo partner in Sydney, to see how Odoo can make your business even better.
