Warehouse Management comprises the day-to-day activities of a warehouse. The goal of a warehouse management system is to reduce the complexity of warehouse management.
Odoo Warehouse management system helps in managing and tracking the stock level of the organization, therefore enhancing the productivity of an organization. ERP for the warehouse clarify the managing and tracking of the stock, providing a way for enhancing organization efficiency and productivity. The software provides various methods or tools to manage the internal operations of the organization.
Inventory management can be stressful at times, especially when complete real-time data is lacking, demanding the next step. An inventory management business/company without ERP software may face numerous challenges, such as product stock-outs resulting in backorders, increased warehouse spacing and product maintenance, lack of product traceability failing to meet customer demands, and last but not least, inability to find exact location resulting in loss of time and other resources, etc.
Open-source alternatives for complete inventory management for any business size and complexity are available with the deployment of ERP platforms like Odoo. Advanced capabilities like double-entry inventory with no stock input, entire product traceability, drop-shipping, cross-docking, multi-warehouse management, routing, product shipment management, and other exquisite features make Odoo ERP an all-in-one inventory management suite.
Principle of Warehouse Management
With the implementation of ERP solutions like Odoo, open-source alternatives for complete inventory management for any business size and complexity are available. Odoo ERP is an all-in-one inventory management suite with advanced capabilities including a double-entry inventory with no stock input, complete product traceability, drop-shipping, cross-docking, multi-warehouse management, routing, product shipment management, and other exquisite features.
Know what you want to achieve: First and initially, a warehouse organization must understand its goals. Do your clients, for example, have certain delivery requirements? Is there a requirement for specialist storage for your inventory? Furthermore, all warehouse operations strive to make the most efficient use of warehouse space, manpower, and equipment.
Control over the entire process: Warehouse management is managing complicated procedures with several moving elements, including people, equipment, orders, and inventory. Warehouse managers must be able to analyze each system to ensure that it runs smoothly and to address any issues that arise. To guarantee that orders are fulfilled correctly, quality control is essential.
Flexibility and resiliency are important qualities: Warehouse managers must be prepared to adjust plans on the fly, whether it's because materials came damaged or shipments are being delayed due to severe weather. It's also critical to be able to change workflows to increase efficiency, whether that means reorganizing warehouse space or rethinking picking operations.
Understand the client: When it comes to customer service and happiness, on-time delivery of the correct goods is one of the most critical criteria. You must be able to complete orders fast and precisely to deliver on time.
Making decisions based on data: Even though everything looks to be moving smoothly in the warehouse, it doesn't guarantee everything is running as efficiently as it could be. A WMS can assist you in identifying and analyzing areas that require development.
Working Procedure of Odoo Warehouse Management System
Warehouse management can be complicated since it entails controlling stock levels, regulating physical space, and tracking orders and deliveries. However, as a firm expands and grows, the warehouse issues become increased as the number of warehouses to oversee expand. Warehouse in Odoo refers to the structure or location where stock products are kept. Multiple warehouses may be readily set up in Odoo, with seamless and clear movement between them.
You can have as many warehouses as you like under your corporation.
Inventory→ Configuration→ Warehouse Management→ Warehouse→ Create
By selecting Incoming Shipment and Outgoing Shipment one can select any existing warehouse for replacement.
In Odoo, Location constitutes a specific space inside a warehouse such as a shelf, floor, or an aside. The location is a component of the warehouse, and it can be configured as a single or several locations. Every transaction, both in and out, is carried out and documented by Locations.
There are three kinds of locations:
Physical Location: These are the areas within your warehouse where your warehouse's loading and unloading takes place. For instance, a shelf or a department.
- Partner Location: This site is not in your warehouse, but rather space within the warehouse of a client or vendor.
- Virtual Location: This is a virtual location that might or might not be physically present, but it is useful when you need to place things that have been lost due to inventory loss or when you need to account for products that are on their way to your warehouse.
Inventory → Configurations → Locations
Routes are the alternative techniques by which a product can be bought or sold from your warehouse. A single-step process (such as from the vendor's warehouse to your warehouse) or multiple-step routes can be configured.
When creating a product in Odoo, you'll notice a field asking for the Route. A route guarantees that a sale or purchase of goods is tracked effectively.
You can create new Route rules from here.
Inventory→ Configuration→ Routes→ Create
Procurement rule in Odoo
A customer's order starts the procurement inventory control process. Companies can carry out the request in a seamless manner by producing only the amount of product required to fulfill the customer's order. The benefit of using a procurement rule is that there will be no surplus inventory that needs to be held. This reduces inventory levels as well as the cost of transporting and keeping items.
There are three kinds of actions possible in procurement rule:
- The rule for moving from other locations.
- Manufacturing rules that will cause manufacturing orders to be created.
- Purchase rules that will cause purchase orders to be created.
Many of these rule sets contribute to keeping inventory levels low. It starts with only the minimum amount of inventory required to meet client demand. As a result, the Make to Order approach can decrease waste by lowering the quantity of inventory storage space as well as the costs associated with storing the goods.
Push rule in Odoo
A certain quantity of product is transferred to the source location using the push rule, based on the criteria set, such as endpoint, location, any delays, and movement type. It is possible to start it automated.
Companies can predict the quality of products acquired by clients using the Odoo push rule.
Reordering rule in Odoo
A reordering rule is a type of custom rule that assists in the automatic replenishment of inventories.
For instance, suppose you want to reorder a product when the stock level exceeds ten units. You can create a Rule, and the system will check it and take appropriate action when you run Scheduler. In a nutshell, the reordering rule aids in the maintenance of a minimal stock backup for each specified item.
The minimal quantity that should be kept in an inventory area is specified by Minimum Quality. The maximum quantity, often known as the top limit for a product quantity, is specified by Maximum Quantity. The quantity multiple with the smallest number of products that can be ordered at once is the third.
You may also set the procurement and selection option for a product using the Procurement Group option.
There are some other shipping management product rules which are as follows:
To begin with, cross-docking is a logistics practice that involves unloading materials from an entering semi-trailer truck or railroad car and loading them straight into outbound trucks, trailers, or rail cars with no storage in between.
Second, Drop-Shipping is a method of delivering things directly from the vendor/manufacturer to the customer (who could be a store or a consumer) without using traditional distribution channels. Without passing through one's warehouse, products are sent directly from the vendor to the buyer.
In Odoo, removal strategies are used during the product choosing process to ensure that the best product is delivered to the customers. It aids in maximizing the distance a worker must go to maintain the quality of every product they transport. When a product movement is required, Odoo assists in locating acceptable and available products and then initiates the product transportation process. Odoo's removal approach is determined by the product category or location.
Now you can see choices such as lots and serial numbers, which can be used to easily handle many warehouse sites and complex product routing using rules.
A First In First Out (FIFO) approach refers to a circumstance in which the products that were stocked first are the first to be moved out. To ensure the quality check of their product delivery, organizations, particularly those selling consumable commodities, must employ the FIFO approach. The FIFO strategy is also advantageous for businesses that offer products with quick demand cycles, such as textiles. In this scenario, using the FIFO technique ensures that no outmoded styles (clothing) remain in the inventory.
A Last In Last Out (LIFO) approach is used when the products that were placed last are the first to be moved out. LIFO is most commonly utilized in shipments of non-perishable goods, such as liquor.
The products are despatched from the warehouse according to their expiration date in First Expiry First Out (FEFO) warehouse management. When you select the option to establish Expiration dates on serial numbers, you may easily manage product movement based on expiration dates. Setting the removal date on a lot or serial number in Odoo aids in the selection of products with early expiry dates.
On the serial number, you can set the best before date, end of life date, alert date, and removal date.
Best before Date: This choice determines when items with a specific lot/ serial number begin to deteriorate. It serves as a wake-up signal to take action before the product becomes hazardous to absorb.
End of Life Date: This option assists in determining when items with a specific lot/serial number become unsafe and unfit for consumption.
Removal Date: Assists in determining when products with a specific lot/serial number should be removed from stock.
Alert Date: This is the deadline for sending out an alert concerning goods with a specific lot/serial number.
Finally, the Putaway Strategies determine where a given product should be placed when it arrives somewhere.
In a word, with Odoo double entry inventory management, full traceability from supplier to customer is ensured. Nothing is lost in the middle of the process because everything is transported on time.
Conclusion
Organizations can avoid running out of goods, reduce losses, increase account accuracy, and provide efficient customer service by using an Odoo ERP warehouse management solution. Businesses can utilize the Odoo ERP warehouse management system to streamline their operations.
