How to Set Up Automatic Reordering in Odoo

Effective inventory management is essential for businesses to maintain optimal stock levels and avoid common pitfalls like stockouts and overstocking. However, managing this balance manually can be time-consuming, error-prone, and costly. This is where Odoo’s automatic reordering feature shines. With its ability to automate restocking, set up reorder rules, define stock thresholds, and even trigger purchases, Odoo reduces manual intervention while enhancing stock efficiency.
This guide will walk you through configuring Odoo’s automatic reordering feature to streamline your Inventory. With practical examples and advanced tips, this step-by-step tutorial is suited for both newcomers to ERP systems and experienced inventory managers.

The Purpose of Automatic Reordering in Odoo

Automatic reordering in Odoo is more than just a convenience feature—it’s a strategic tool for inventory optimization. By using this functionality, businesses can achieve:

1. Cost Savings: Reducing excess stock saves on storage costs and frees up capital for other business activities.

2. Prevention of Stockouts: Never run out of critical items by setting up alerts and automatic reordering triggers.

3. Time Efficiency: Automating repetitive stock management tasks can save you significant time, allowing you to focus on strategic business activities.

These benefits make Odoo’s automatic reordering an essential tool for companies aiming to optimize their stock levels without constant monitoring.

Step-by-Step Guide to Setting Up Automatic Reordering in Odoo

This guide will lead you through the essential steps:

• Preparing product data
• Configuring reordering rules
• Setting stock thresholds
• Enabling automated purchase orders
• Monitoring the system
• Using advanced options for complex setups

Step 1: Prepare Product Data

Each product you wish to automate must be set up accurately in Odoo, including details like reorder quantities, vendors, and minimum and maximum stock levels.

1. Open the Inventory Module: Go to the Inventory module in Odoo, where you can manage all your products.

2. Select or Add a Product: Choose an existing product to configure or create a new product if it isn’t in your system yet.

3. Enter Product Details:

   • Product Type: Set the type to “Storable Product” for items that need stock tracking.

   • Vendor Information: Under the “Purchase” tab, add the vendor(s) from whom you source the product, including details like lead time, pricing, and order multiples.

   • Inventory Data: Specify minimum and maximum quantities and any special reordering requirements. Setting up this information accurately is crucial for automatic reordering to function seamlessly.

Step 2: Configure Reordering Rules

Reordering rules determine when Odoo should reorder stock and in what quantities, helping maintain ideal stock levels with minimal effort.

1. Navigate to Reordering Rules: In Inventory> Products > Reordering Rules, create a new rule or modify an existing one.

2. Create or Edit a Rule:

   • Product: Select the product to which this rule applies.
   • Location: Specify the warehouse or storage location.
   • Minimum Quantity (Min Qty): Set the minimum stock threshold that triggers a reorder.
   • Maximum Quantity (Max Qty): When reordering, define the target stock level.
   • Quantity Multiple: If products must be ordered in specific multiples (like cartons of 10), set this value here.
   • Lead Time: Odoo will use this lead time to place orders in advance, accounting for delivery delays.

Example:
For a high-demand product with a minimum of 20 and a maximum of 100, Odoo will reorder stock to reach 100 units whenever the level drops below 20. This setup prevents shortages while avoiding excess stock.

1. Save the Rule: After configuring the parameters, save the rule. Odoo will now monitor stock levels for this product, and trigger reorders when conditions are met.

Step 3: Set Minimum Stock Thresholds

Minimum stock thresholds act as your “trigger point” for reordering. Properly setting these thresholds helps prevent stock outs without keeping unnecessary quantities on hand.

1. Adjust Min Qty in Reordering Rules: In the reordering rules, set the Min Qty based on sales velocity, seasonality, or any known demand patterns. High-demand products may need a higher threshold, while lower-demand items can have a smaller buffer.

2. Analyze Historical Demand: Review past sales trends to set appropriate minimum quantities. Demand analysis can guide you in setting the most effective thresholds.

Step 4: Enable Automated Purchase Orders

One of the most potent aspects of Odoo’s automatic reordering is its ability to automatically generate purchase orders (POs) when the stock reaches the reorder threshold.

1. Define Vendor Information: In the “Purchase” tab of the product details, specify the vendors, including pricing, lead times, and preferred order quantities.

2. Set Preferred Vendor: If multiple vendors exist, choose a primary one to streamline automatic orders.

3. Review Purchase Orders: Draft POs generated by Odoo will appear in the “Purchase” module, allowing you to review or make adjustments before confirming with the vendor.

Step 5: Monitoring and Fine-Tuning Reordering Rules

Regular monitoring helps ensure that the automatic reordering system continues to meet business needs.

1. Review Inventory Reports: Odoo’s inventory reports provide insights into stock levels, reorder frequency, and turnover rates. Use these to identify trends and adjust reordering rules as needed.

2. Adjust Reordering Rules: Based on demand changes, adjust Min and Max quantities to keep stock levels optimized.

3. Check Lead Times: Vendors may occasionally experience delivery delays; keep lead times updated to ensure reorders are triggered with enough time.

Advanced Features for Complex Inventory Needs

For more intricate inventory setups, Odoo offers additional options, such as managing multiple warehouses and creating customized routes.

1. Multi-Warehouse Management: Businesses with multiple warehouses can set different reorder rules per location, which is ideal for regional variations in demand.

2. Triggering Manufacturing Orders: If you manufacture products, reordering rules can be set to trigger production orders rather than purchase orders, integrating seamlessly with Odoo’s Manufacturing module.

3. Custom Routes and Batch Ordering: Create custom delivery routes for direct vendor-to-customer fulfilment or set up batch ordering to reduce shipping and handling costs.

Troubleshooting Common Issues

Even with automated systems, issues can arise. Here’s how to handle some common reordering issues:

1. Orders Not Triggering: Confirm that all reordering rules are saved and correctly configured with linked vendors, and set Min and Max quantities.

2. Unexpected Stockouts: Check the minimum Qty and lead times. Increasing the minimum threshold can help ensure a buffer stock to cover unexpected demand surges.

3. Overstocking: If excess stock is an issue, consider lowering the Max Qty or adjusting the reorder rules to match demand better.
4. Vendor Order Errors: Vendor issues often arise from incomplete or outdated information. Regularly check that vendor pricing, lead times, and order minimums are accurate.

Case Study: How Automatic Reordering Transformed Inventory for a Retailer

Let’s consider a retail case to illustrate the impact of automatic reordering. A mid-sized electronics retailer faced regular stockouts of popular items, causing delays and missed sales opportunities. By setting up Odoo’s automatic reordering, the retailer defined reorder points based on past demand and specified lead times for each vendor.
Within a month, the system eliminated 90% of stockouts on high-demand items. By linking automated purchase orders directly to their suppliers, the retailer saved 15 hours a week previously spent on manual stock checks and reorders, freeing staff to focus on customer service and sales.

Final Thoughts

Odoo’s automatic reordering is a powerful feature for businesses looking to streamline inventory management. By configuring reorder rules, setting up minimum thresholds, and enabling automated purchase orders, companies can reduce manual intervention and improve efficiency across the board.
While setting up automatic reordering takes some time initially, the benefits far outweigh the effort. Regular reviews and adjustments will keep the system running smoothly, helping your business maintain optimal stock levels year-round.

How SDLC CORP Can Help You Set Up Automatic Reordering in Odoo

Setting up automatic reordering in Odoo can significantly streamline your inventory processes, but configuring it to fit your unique business needs requires in-depth knowledge and experience. SDLC CORP, a leading Odoo Development Company, specializes in guiding businesses through the complexities of ERP configuration, ensuring an efficient and fully optimized reordering system. With SDLC CORP’s expertise in Odoo Development services, you can achieve a seamless setup that aligns perfectly with your inventory requirements.
From configuring the proper Odoo Development process to implementing advanced customization, SDLC CORP’s team is well-equipped to handle your industry’s specific demands. SDLC CORP can provide end-to-end support if you need assistance with Odoo Development implementation, fine-tuning reordering thresholds, or setting up automated purchase triggers.
As a trusted Odoo Development consultancy, SDLC CORP offers customized solutions for complex setups, including multi-warehouse operations, Odoo POS Development Company integration, and custom route management. They can also help you leverage additional features like batch ordering and automated vendor management to enhance your inventory system’s flexibility.
By choosing SDLC CORP, you can access a team of skilled Odoo Module Development Company experts adept at creating custom modules tailored to specific needs, whether in Odoo ERP Development or specialized Odoo POS Development. They understand the nuances of Odoo Development industry standards and can ensure that your reordering process runs smoothly from start to finish.
Are you looking to hire Odoo developers for dedicated support? SDLC CORP offers comprehensive support packages and consulting services for businesses at every stage of the Odoo Development implementation journey. As one of the Top Odoo Development Company choices, SDLC CORP can help you set up a robust, responsive, and scalable automatic reordering system, ensuring your inventory management is always a step ahead.