Benefits of Inventory Management with Odoo Modules
Inventory management is critical in today’s business transactions. Various businesses, including eCommerce companies, distributors, and retailers, rely on effective inventory management solutions to manage their retail locations, product storage, and warehouses. Because inventory accounts for a significant portion of a company’s assets, failing to implement an inventory management system can result in a variety of issues, including stock-outs, difficulties with product traceability, and poor customer service.
To address these issues and warehouse automation processes, many businesses choose the Odoo inventory solution, which is notable for its simple installation process and easy use.
A spreadsheet may be sufficient for stock management in a small manufacturing operation with a limited inventory, a small storage area, and a few customer orders. However, for larger and more complex environments, a more sophisticated inventory management system is required to efficiently collect, manage, process, and report on all data in near-real time.
Failure to accurately track all incoming and outgoing inventory shipment items can have a significant impact on turnover and overall stock management. As a result, a strong inventory management system is required for any growing manufacturing company to effectively manage stock and ensure smooth operations.
Odoo Inventory Management keeps stock levels at optimal levels to ensure that the business meets its objectives. This includes:
This blog aims to educate you on the benefits of using Odoo for inventory management and the importance of utilizing its inventory management tools.
- Control stock quality, accuracy, and quantity.
- Optimize the order handling and replenishment processes.
- Integration with shipping partners, accounting, eCommerce, and other operational tools.
- Regulate movement and stock distribution.
- Maintain inventory costs and valuations.
- Support regulatory compliance through traceability.
- Provide inspection checkpoints.
Benefits of Using Odoo Inventory Management
Boosts Productivity
By providing immediate information access, efficient order editing, data accuracy assurance, and better documentation flow.
Odoo Inventory Management is a game-changing solution that improves productivity. Procurement employees can quickly retrieve critical data, make efficient order changes, maintain accurate records, and automate the entire warehouse process.
This optimized workflow eliminates delays, improves decision-making, and allows businesses to achieve unprecedented levels of productivity.
Improved Reports and Analytics
Odoo Inventory ensures that inventory changes are updated on time and accurately, providing businesses with consistent and real-time data for report generation.
Odoo’s customizable dashboard allows you to create and share reports in the formats you want, saving you valuable time. Furthermore, the level of access to these records can be restricted, allowing only authorized individuals to view company information.
Odoo’s inventory management module is a powerful tool for improving analytics. Comprehensive reports allow you to clearly analyze the inventory situation, identify issues, determine their causes, and develop appropriate solutions.
This allows you to address inventory-related issues, forecast inventory product availability, and develop an informed plan for the coming period.
Easy Integration
Odoo Inventory can integrate with other applications in two ways. The first is to integrate with other Odoo apps, followed by integration with third-party apps.
Odoo Inventory automatically integrates with other Odoo apps, including Sales, Purchase, Website, and Accounting, to enhance its functionality. For example, when creating a sales order, the Odoo Sales app is used, whereas the Inventory app allows for product creation and verification of stock availability. In addition, the Accounting app records the transaction and creates a journal entry for the sale.
Furthermore, Odoo Inventory allows for integration with a variety of third-party apps. As an example, suppose you own a distribution company and already use a different accounting and payroll system than Odoo Accounting. In such cases, an Odoo partner can help you integrate the solution into your Odoo system.
Quality Management
The use of Odoo ERP enables the advancement of warehouse management processes while maintaining exceptional quality standards.
Businesses that use Odoo inventory can effectively deliver high-quality products to end-customers, resulting in high customer satisfaction. Furthermore, Odoo ERP for warehouse management helps organizations increase productivity and maximize return on investment (ROI) by reducing resource waste.
Easy Customizable
Customized Odoo Inventory Management optimizes inventory processes, increases visibility, automates tasks, and integrates seamlessly with other modules.
Personalized workflows and automation allow businesses to increase efficiency and reduce errors, which ultimately leads to a competitive advantage in the market. Furthermore, Odoo offers a user-friendly interface for creating custom reports and dashboards.
Users can create their own inventory reports, sales analysis, and stock forecasts using drag-and-drop functionality. Businesses can also create customized software applications from scratch, including specific features and functionalities to meet their specific needs.
Key Features of the Odoo Inventory Management System
Barcode Integrations
After enabling barcode integration in the inventory settings, users can scan products with a connected barcode scanner device. Odoo inventory barcode integration provides flexibility in two ways:
First, users can use the platform’s nomenclatures to create different barcodes for their various products.
Second, Odoo lets users print simple images of generated barcodes onto product packaging.
Multiple Warehouse Management
Don’t be concerned if a company has multiple warehouses spread across the globe. In that case, Odoo Inventory offers to manage the inventory of all warehouses from one platform.
Odoo Inventory allows you to smoothly track and manage the movement and transformation of each product throughout the entire process, from vendor delivery to final delivery to the customer’s doorstep.
Multi Location Creation
In Odoo Inventory, warehouse locations refer to specific areas of the warehouse, such as a floor or shelf. Locations cannot be linked to multiple warehouses, but we can create multiple locations associated with each warehouse.
Stock Removal Strategy
Removal strategies are used in inventory operations to select products based on specific criteria such as selecting the best products, minimizing worker distance, quality control, or moving stock products with the closest expiration date first. Odoo Inventory offers four stock removal techniques: FIFO, LIFO, Closest Location, Least Packages, and FEFO. These removal strategies assist in the efficient management of product stocks.
FIFO (First In First Out) means that the product that was stocked first will be moved first.
LIFO (Last In First Out) refers to the products that were purchased most recently and will be moved out first.
Closest Location: Products will be delivered from the closest location first.
FEFO (First Expiry, First Out) – Products that are about to expire will be moved first.
Least Packages: Least Packages is a force removal strategy that avoids reserving quantities in two packs when demand is met in a single larger pack.
Putaway Rules
The Putaway Rules are used in Odoo inventory to prevent products from being stored incorrectly. This process assists in placing products in the most appropriate stock management location once they are received from shipments.
Assume you run a retail store that sells markers for whiteboards and personalized office furniture.
Within your warehouse, make sure that the markers are stored in the designated marker pen area and the desks are stored in the proper desk section.
To achieve this organizational structure, you rely on Putaway Rules, which are used to arrange products before they arrive at the warehouse. Putaway Rules are only applicable when you have multiple locations.
Reordering Rules
Odoo’s inventory management system enables users to set reordering rules for available products, ensuring that the company never runs out of stock or experiences overstocking.
Warning messages are used on the Odoo platform to provide timely information about low stock levels. If a user decides to discontinue a product, they can simply remove the stocking rules from the product menu.
Furthermore, automatic procurement can be configured within Odoo’s inventory management system using minimum stocking rules.
Odoo Warehouse’s reordering rules allow users to set a minimum and maximum stock count for products associated with these rules.
Shipping Method
Shipping methods allow you to specify the delivery of products based on various types of shipping services. Efficient and appropriate product delivery is a critical component of any business organization, as it provides numerous advantages.
Odoo shipping methods allow you to manage the selection of transport companies, ship products by zip code, pricing, and shipping destinations.
Odoo allows it to integrate with external shipping providers, allowing the system to calculate precise shipping costs and identify appropriate packaging for shipments.
Scrap Management
Scrap Management in Odoo inventory refers to a useless, damaged product or material that can be recycled.
The products may be expired, as dates are included in the scraps location.Scrap products must be managed carefully because they have a financial value that distinguishes them from waste.
Scrap Management in Odoo Inventory provides a more intelligent approach that not only helps you save money but also ensures the optimal condition of products stored on inventory shelves.
Conclusion
What does Odoo Inventory mean for your business? For us, it is a mechanism that our clients use to simplify stock management.
Odoo’s architecture enables seamless integration with a variety of modules including CRM, purchase, sales, accounting, manufacturing, and many more.
So you can easily coordinate all inventory-related processes such as delivery operation management, batch transfer, landing cost management, replenishment, scrap management, product and product variant management, warehouse analysis, and many more. The most important aspect of Supply Chain Management is proper inventory management. The more accurate your inventory, the easier it will be to troubleshoot issues.
These are some of the most important factors to consider before switching to the Odoo ERP Platform. So, if you require assistance, Jupical Technologies is always available to guide you through the Odoo implementation, development, integration, or migration process to ensure a smooth and trouble-free experience.
For more information, please contact: hello@jupical.com.