Odoo for end-to-end manufacturing
process automation

Odoo for end-to-end manufacturing process automation

January 16, 2024

Odoo Manufacturing comes equipped with the MRP, PLM, Maintenance, and Quality apps to support various aspects of manufacturing, deliver a holistic view of business processes, and enable data-driven decisions. The vendor offers on-premises, PaaS, and SaaS hosting models and charges customers monthly.

Manufacturing organizations regularly face industry-specific challenges and internal issues that hinder their growth, such as:

  • Ineffective and error-prone manual stock checks and inventory management
  • Inaccurate demand forecasting resulting in stockouts and lost sales or overstock and high inventory carrying costs
  • Inability to build a robust quality assurance and control program into production and distribution cycles, resulting in large fines and damaged reputation
  • Lack of supply chain visibility and inability to handle disruptions
  • Growing pressure to adopt sustainable manufacturing practices

Companies looking for a solution to these challenges should consider Odoo ERP, a suite which encompasses industry and workflow specific applications. Manufacturers turn to Odoo consulting not only as an all-in-one ERP, but to also integrate the Odoo Manufacturing module with Inventory, Purchase, CRM, POS, and other functional modules. The resulting system covers planning, engineering, product lifecycle, supply chain, equipment maintenance, time tracking, and other day-to-day activities.

Odoo Manufacturing: key capabilities

Odoo MRP

Odoo's MRP application helps manufacturing companies define and plan raw materials and resources needed to produce merchandise. By properly mapping out your resources, you can ensure demand-driven productivity, prevent fluctuations due to stockouts, as well as cut inventory carrying costs by minimizing excess inventory and product waste.

Image title: Master production schedule dashboard
Image source: odoo.com

Odoo MRP

With the Odoo MRP app, you can:

  • Create Bills of Materials (BOMs) for each product you manufacture, BOMs for multiple variants of the same product, and multi-level BOMs that specify the number of components needed, routing information, and manufacturing steps.
  • Plan inventory for your subcontractors and oversee billing activities and the quality of goods manufactured.
  • Set productivity goals (capacity, OEE, time before/after prod, cost per hour, time efficiency, lead-time) for each of the work centers.
  • Monitor work center performance (OEE, lost time, load, performance).
  • Create accurate demand forecasts for manufactured products and their components and create a Master Production Schedule, Make to Order rules, and Make to Stock rules on their basis.
  • Calculate the safety stock target for a product and the minimum and maximum quantities to be replenished.
  • Monitor scrap products/components, including the date and time of the order and the quantity of scrap.

Automate key business processes with Odoo Manufacturing

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More Odoo capabilities for the manufacturing sector

Odoo Inventory

Odoo Inventory functions as an inventory application and a warehouse management system to help manufacturing teams track stock moves and optimize inventory levels on the go, automate replenishment activities, inventory valuation, and meet the demand without overstocking.

Image title: Inventory overview dashboard
Image source: odoo.com

Odoo Inventory

With the Odoo Inventory application, you can:

  • Track inventory from the supplier to the customer with the double inventory capability.
  • Achieve complete traceability of all operations - picking, delivery, quality control, etc.
  • Structure your warehouse using hierarchical locations (zones, rows, shelves) to define the product's exact position within your warehouse.
  • Configure push/pull rules to automatically generate transfers across receiving docks, quality control areas, storage locations, picking and packing areas, and shipping docks.
  • Configure advanced routes, including drop-shipping and cross-docks.
  • Define replenishment rules between multiple warehouses.
  • Gain complete visibility into scrap, their costs, reasons, and volumes.
  • Find inventory by scanning a barcode or filtering by customer, product, supplier, etc.
  • Let your customers track their order status and invoices with an easy-to-navigate customer portal.
  • Automatically trigger requests for quotation to negotiate prices with suppliers based on future needs.
  • Use multiple units of measurements, packages, and packaging as well as various product costing methods.
  • Forecast product availability based on confirmed sales orders, purchase orders, and manufacturing orders.

Odoo Manufacturing pricing

Odoo comes in two versions - Odoo Community, which is open-source, and Odoo Enterprise, which is licensed. Odoo Community is a good option to get acquainted with the platform; however it has limited functionality across various modules. Besides that, Odoo Community doesn't come with unlimited functional support, version upgrades, and hosting. Here are the pricing details for Odoo Enterprise:

One App Free

Standard

Custom

Subscription details

One App Free

Standard

Custom

  • One* Odoo app (including Odoo Studio) with an unlimited number of users
  • Support and maintenance 
  • Hosting on Odoo Online
  • All Odoo apps
  • Support and maintenance
  • Hosting on Odoo Online
  • All Odoo apps 
  • Support and maintenance 
  • Hosting on Odoo Online/ Odoo.sh*/On-premises, 
  • Odoo Studio for Odoo customization
  • External API to query, retrieve or update data stored in Odoo with external systems
Licensing fee

One App Free

Standard

Custom

Free

  • from $24.90 per user per month (yearly subscription)
  • from $31.10 per user per month (monthly subscription) 
  • 15-day free trial
  • from $37.40 per user per month (yearly subscription)
  • from $46.80 per user per month (monthly subscription)
  • 15-day free trial

* If you choose an app that depends on other apps, you get these apps for free too. For example, when selecting the eCommerce app, you get Website and Invoicing for free too.

** The cost for Odoo.sh hosting is not included in the license fee

How to upgrade the Odoo Manufacturing application

Customize the platform

To cover any niche business requirements, Odoo has several built-in customization tools (Odoo Studio, the Website Builder, and the Report Designer), allowing business users with no coding experience to tailor the software to their needs. Moreover, manufacturers can create and integrate custom modules to extend Odoo’s functionality.

Build integrations

To enable an uninterrupted data flow and management of all business processes, you should integrate the Odoo platform into your software environment. Odoo can be connected with all corporate applications, legacy software, and third-party apps from your customers and partners through various options, including APIs, pre-built connectors, and custom code-enabled integration.

Benefits of using Odoo for manufacturing

Optimized production

due to effective management of inventory across multiple locations, accurate demand forecasting, and master production scheduling.

High product quality

due to end-to-end production process monitoring, detection of production defects in real-time, and timely corrective and preventive actions.

Improved OEE

due to IoT-enabled equipment monitoring and analysis and corrective and preventive equipment maintenance automation.

Informed decision-making

due to increased visibility into business processes enabled by real-time reporting and open communication channels for collaboration between departments.

Enhanced efficiency

due to minimized manual data entries and automated business processes, such as inventory tracking, invoicing, payment processing, and defect recognition.

Cost savings

due to decreased costs spent on administrative tasks, minimized cases of production delays and defective goods, and overall business process visibility to identify areas where you can drive cost savings.

Odoo services we offer

Consultancy

Our experts analyze your business needs and requirements and conceptualize your Odoo-based solution. After that, we outline the required functional modules and integration scope and develop a detailed implementation strategy.

Implementation

Our team offers full-cycle Odoo implementation services, from business needs analysis and Odoo configuration/customization to platform integration with the current IT environment, user onboarding, and post-launch support.

Support & evolution

Itransition helps companies maintain the smooth performance and relevancy of the Odoo-based solution through a continuous monitoring of the platform’s performance, timely issues detection and resolution, delivery of new features, and more.

Customer spotlight

Automated warehouse management with Odoo

90%

manual work reduction

A US-based repair and maintenance enterprise specializing in industrial automation systems turned to Itransition for ERP system implementation and business process automation. To help the customer automate their multiple business processes, including work order management, inventory management, and quoting, and unify disparate software, we developed a centralized Odoo-based ERP system and paired it with some custom add-ons. The delivered system allows employees to find any item in storage effortlessly and enables flexible on-demand procurement. We also optimized the customer's purchase order approval workflow, which halved the approval time.

Driving automation with Odoo Manufacturing

Driving automation with Odoo Manufacturing

The manufacturing industry is evolving rapidly, becoming smarter and more efficient, and many new technological advancements lie ahead. Amid these disruptions, companies need a solid but lean system that can support all essential processes and serve as a foothold for innovation at the same time.

A leading provider of manufacturing ERP software, Odoo offers the solution for forward-minded manufacturers. Easy to tailor to unique manufacturing needs, the system can centralize and streamline procurement, equipment, product, and human resources management and cater to more advanced tasks such as proactive workforce planning and IoT device integration.

Driving automation with Odoo Manufacturing

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FAQs

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