Effectiveness of Odoo Inventory Management

May 4, 2021 by
Effectiveness of Odoo Inventory Management
Will Nguyen
| No comments yet

    Inventory management is considered a complicated job for business owners and storekeepers. When the business is growing in the future, the quantity of goods in stock is also increasing, making it more challenging to manage the warehouse operations efficiently. Effective warehouse management ensures that goods are sold or imported without confusion because the loss in warehouse management is the concern of many businesses. This article will explore the concepts of Odoo inventory management and effective warehouse management practices, which will help you manage your inventory more efficiently and save time in your business.

    Follow the First Import - Export rule 

    This is a fundamental principle in inventory management. First In - First Out is simply the items you import first need to be exported first and vice versa. This method applies to products that are perishable or have a short shelf life and other items such as technology or fashion items that should comply with the above principle. Although these products do not wear out or expire, they are also very susceptible to outdated fashion.

     Establish optimal inventory level 

    Inventory norm is the number of goods that are always maintained in the warehouse to ensure timely supply as soon as there is a need for use, at the same time helping to maintain continuous and seamless business operations. Inventory management will become more accessible and more efficient if you set the maximum and minimum inventory levels for each product, meaning that the quantity of a particular item can never be less than the minimum norm or exceed the maximum norm. To optimise inventory, you need to base on the following criteria: 

    • Actual inventory of goods in stock 

    • The number of customer orders 

    • The goods supply process from the suppliers 

    Warehouse management by barcode 

    Make sure all items in your inventory have been labeled and barcoded. Managing the warehouse by barcode will help you save more time in finding the right product. When goods have barcode stickers, you need to use a scanner and scan the code on the product, and you can immediately add outstanding stock fluctuations quickly on management software, thereby avoiding errors due to wrong input of goods data. 

    Inventory check regularly

    It is recommended that an inventory check is carried out every six months to ensure that the quantity is consistent with the stock of goods and the quality (damage, deterioration, packaging). 

    For inventory check to be done quickly, you must have a better more organised way of arranging your warehouse. You may consider stocking your products in your inventory by commodity group or product groups. 

    Lean Manufacturing Model 

    The lean Manufacturing governance model will help manage the source of goods and materials in the warehouse to meet the demand in the market. At the same time, reduce the inventory of too much wasteful. Outstanding advantages when using the Lean Manufacturing model. It can have the following benefits. 

    • Reduce loading and unloading time, goods rotation 

    • Minimise time to search and check inventory 

    • Shorten production and service delivery times 

    Be flexible in handling situations while reducing pressure on input resources such as human resources, machines, and equipment

    Use software to manage inventory 

    Warehouse management is a critical job of every store. To sell products effectively and generate detailed statistics about what went in and what went out from the warehouse, it is necessary to closely and carefully monitor the quantity of goods in the warehouse. The application of management software to replace manual recording of data will help businesses reduce many mistakes and unnecessary losses. Pick a logistics management software with low investment cost and ease of use that will maximise your support in minimising the waste of resources.

    The benefits of warehouse management in ERP systems

    Many companies use ERP management software, such as Inventory Odoo ERP to manage business activities such as purchasing, inventory, accounting, or customer relations. These inventory management software systems have become popular with businesses in the 4.0 era. Odoo ERP with Inventory module is trusted by many companies thanks to its outstanding and helpful features and reasonable implementation costs.

    Increase working efficiency

    ERP helps businesses reduce time and effort during operations by automating daily tasks that have been manually done before. An automatic management system helps increase efficiency and productivity and increases the accuracy of output products and data.
    Cost savings 

    The organisation can increase productivity, and product quality also means saving production costs and operating costs. Instead of hiring and paying large salaries for workers to do it manually, businesses can use inventory management software to automate operations, helping to reduce operating costs. In addition, increasing the accuracy of products and reducing the number of damaged, lost or expired products due to extended inventory also helps save costs for businesses.

    Accurate figures and reports

    When raw materials, inventory, orders, and customer data are updated, and archived, ERP Inventory allows high precision, less false data to be recorded. Furthermore, the Odoo ERP system will also enable users to create, classify and save sale reports and inventory reports to track business performance and growth plans.

    Inventory management

    With accurate up to date data, managers can easily recognise inventory items and quickly proceed with their liquidation. Long-term storage of inventories will lead to expiration before selling which is a cost for the business. And business will not be able to recover capital for that product, meaning unnecessary costs increase instead of sales.

    Materials planning and additional ordering

    Inventory management allows the business to anticipate and plan additional orders for production adequately, and inventory quantities must be accurate to determine when more purchases are needed. Odoo ERP inventory management system allows businesses to categorise items/details to make it easy to order the correct quantity. Some items need to be ordered when there is a specific need in the exact quantities to meet the demand. Some other items are ordered when the market price is lower and easy to buy, and the additional material inventory optimisation will help better manage inventories.

    Above are the benefits of inventory apps which are essential in ERP packages. Odoo inventory app is Modern online warehouse management software that is designed for one purpose to maximise your warehouse efficiency, Below are some of the features of Odoo ERP inventory management software.

    Features of Odoo Inventory ERP

    Odoo manages dual inventory, allowing products to be fully traced from supplier to customer. All data is recorded and updated according to user settings. Also, Odoo allows packing and delivering orders with or without barcodes (QR code, barcode). Odoo prepares orders based on the availability of the item. Manage all your repositories with the same system and set up supply rules between warehouses. When it comes to managing inventory for small to mid-size businesses, Below are the key benefits for the Odoo inventory app that stands out from the competitors.

    • Use barcode scanners for every inventory operation: inventory, incoming shipments, packing orders, and more.

    • Odoo ERP helps to control processing times by automating inventory transactions, improving transparency in all business operations.

    • Odoo ERP's logging and data archiving features such as Lots Control, Activity Log, Serial Number, Valuation make it easier to manage.

    • Odoo supports product types with different properties: physical products, consumer goods, services, and digital products. Users can add as many custom fields as needed on products to meet business needs.

    • Keep track of less or no inventory with fully automated stock replenishment notifications. Using order points and RFQ automatically helps supply chains to operate more efficiently.

    • Odoo warehouse management system supports FIFO (first-in-first-sale goods), average prices, and standard prices for product costing methods.

    With the outstanding features that Odoo ERP Inventory's warehouse management software offers, businesses can easily manage resources and inventory, production materials, and optimise internal processing. As Odoo's Silver Partner in Australia, High Tech Mastermind is always ready to listen and advise businesses to implement and use Odoo ERP management software optimally.








    About us:

    Will Nguyen, Business Analyst
    Will is an IT business analyst at High Tech Masterminds. He also supports digital marketing and market research in Australia. In addition, Will is a financial consultant with 3 years of experience in the field of consulting financial plans for customers and product promotion. 

    High Tech Masterminds Pty Ltd is an Official Odoo partner in Australia. We believe that every manufacturing business can benefit from modern information systems and digital technology in its digital transformation journey. You can book a free consultation session today with one of our experienced consultants (No salesperson!) to talk about how digital technology can help you scale up.

    Want an ERP Solution to boost up your business performance?

    50,000+ companies run Odoo ERP to grow their businesses.

    Book a free 1h Consulting session with us.



      Effectiveness of Odoo Inventory Management
      Will Nguyen May 4, 2021
      Share this post
      Sign in to leave a comment