How to Configure Inventory in Odoo?

Inventory management enables companies to manage the movement of stock and other inventory activities along with finance and logistics. Moreover, all this can be easily done by using one software. This helps you with efficient sock management and cost reduction. Plus, it makes the supply chain more transparent.

Inventory management is a huge deal of work for micro, small and medium enterprises. Adoption of the right practices through a perfect management system can help you in the smooth functioning of the inventory management process. This involves reaching out to customers through the right methods.

Inventory includes raw materials, work-in-progress and finished goods. There are some organizations that only consider finished goods as inventory. The use of Odoo software can help you manage your inventory efficiently. You can track all the assets, which are ready to be sold in the market.

Inventory is without a doubt one of the most important assets of the company as its sale will lead to the generation of revenue. Both unfinished and finished goods need to be managed and controlled under the inventory management system as they are the potential source of revenue generation.

The inventory management system cuts down your expenses, offers you better customer support, and helps take precautionary steps to prevent the loss of stock management. Moreover, it gives you a better understanding of the financial situation of the company. The system takes care of shipping, products, and warehouse.

Warehouse Management-

Odoo inventory management includes the following aspects.

1) Warehouse

Odoo inventory management provides support for the warehouse. If your company is large and has two or more warehouses, then our management tool has a control panel that can manage various warehouse activities. Go to the inventory configuration page and then choose the option of warehouses. Then, keep on adding the name of warehouses in the same window.

2) Putaway Rules

The rules have been specifically made to move the shipment received to the right location. Some goods are perishable and there is a risk of them getting ruined, which is why they need to be kept in a place where they will remain in good shape. For instance, you need to store dairy products in the refrigerator. Therefore, this putaway rule works well for different kinds of products for their appropriate storage.

3) Locations

You can add various locations in the warehouse only for good product flow and traceability. This is extremely helpful in the creation of putaway rules and managing types of operations. There can be multiple locations within the same warehouse. You can also create a hierarchy for location in this management tool.

Operations Type

Operation types can be created to record different operations for making an inventory entry. This helps in the grouping of inventory operations. The operation types include manufacturing, shipping, delivery, etc.

Product Categories

Users can make categories for different products in the inventory. This helps us in grouping and sorting products for better inventory actions. With the help of categorization, management can be done optimally. You can create a parent category.

Every category has the same removal strategy, which needs to be removed depending on the date of stocking. Once you are done with the category configuration, then you can move on with the addition of attributes.

Attributes

You can create attributes with the help of product variants. For instance, you can create an attribute, namely color, and then add values to it such as blue, green, yellow. With this, you will be able to do color variation by creating variants. You can form a value and attribute at the time of making a new product.

Reordering Rules

The rules for reordering enable you to replenish stock automatically whenever required. You can set the maximum and minimum quantity for every product. When the stock goes below the minimum requirement, the stock replenishing helps in reaching the maximum quantity. Also, it makes sure that the products which have automatic triggers never get overstocked or out of stock.

Delivery

Inventory management also involves managing the delivery of products. You can easily alter the delivery settings by going to the section of the configuration.

Here in asset management, there is no scope for calculation errors, duplication errors, entry errors. Therefore, a system is required that can manage everything optimally without any risk of errors.

Usually, the inventory management systems are created for managing stock reordering and monitoring. They work in coordination with other departments of the company such as accounting and manufacturing for creating a real-time database.