Odoo Inventory Management: Module Features, Pricing and User Reviews

The Odoo Inventory module is a robust module within the Odoo suite, providing a complete software solution that integrates robust inventory and warehouse management features. It offers the flexibility and scalability businesses need to thrive in dynamic industries.

This guide explains the fundamentals of Odoo Inventory, its key features, and a real-world use case to see how it stacks up against the competition.

What Is The Odoo Inventory Management Module?

The Odoo Inventory module is an integrated solution designed to optimise stock control, automate logistics, and enhance supply chain efficiency. Unlike traditional inventory systems, Odoo Inventory leverages real-time data synchronisation, artificial intelligence (AI) for demand forecasting, and deep integration with IoT devices to streamline operations.

With features like automated stock replenishment, barcode scanning, and multi-warehouse support, this module empowers businesses to reduce manual effort and minimise errors.

1. What are the benefits of using the Odoo Inventory module?

The Odoo Inventory module enables users to track stock levels in real time, automate key tasks, and optimise warehouse operations, helping businesses scale efficiently while reducing costs.

Here are the advantages that make users choose it over other solutions:

• Seamless integration: Odoo Inventory seamlessly integrates with other Odoo apps and third-party business tools, enabling a unified workflow across inventory, purchasing, manufacturing, sales, accounting, and so on. This interconnected approach enhances data accuracy, streamlines operations, and ensures smooth inventory management without the need for complex manual processes.
• Scalability for growing businesses: Odoo Inventory is designed to scale with your business, whether you operate a small warehouse or manage a complex multi-location supply chain. Its modular structure allows you to expand functionalities as needed, ensuring that your inventory management system adapts to evolving operational demands without requiring a complete overhaul.
• Advanced features: You can leverage a range of powerful tools, such as inventory valuation, automated delivery routes, and multi-warehouse management, to enhance control and efficiency. Odoo Inventory supports multiple costing methods (AVCO, FIFO, standard price) for precise financial reporting, while advanced stock movement automation optimises logistics or reduces delays.

To see how Odoo Inventory can transform warehouse management, watch the following video:

2. What are the hardware options for Odoo Inventory?

Odoo offers not only software but also smooth hardware integration to maximise your warehouse's productivity. Here are the essential hardware options:

• Barcode Readers: Odoo Inventory supports various barcode scanners, including USB, Bluetooth, and mobile computer scanners. Recommended models include the Zebra TC21, TC26, and TC7x series for optimal performance and compatibility.

• Labels Printers: Zebra ZD410 is suggested with the highest compatibility with Odoo's ZPL protocol. See the image below for a visual reference of the Zebra ZD410 printer:

• Weighing Scales: Odoo IoT Box is required for integrating Odoo Inventory with electronic scales. The Mettler Toledo Ariva is recommended, providing real-time weight data for inventory management.

To ensure smooth operation, verify that your selected hardware is compatible with your keyboard layout and regional settings. Odoo also advises testing individual devices before purchasing, as model variations may impact performance.

3. How much is the Odoo Inventory module?

The Odoo Inventory module is available for free in the Community version, though it has limited features. The Enterprise version starts at 34.4 AUD/month (or is free if only using one app). Keep in mind that barcode functionality is not included in the Community version.

Note: Odoo plan pricing varies based on location and time. For the latest Australian pricing, please request a quote through our Odoo consultation service.

The following image highlights that barcode features are not included in the Odoo Community version:

The following factors affect the cost of the Odoo Inventory module:

4. How To Set Up Your First Operation With Odoo Inventory?

To set up your first operation with Odoo Inventory, you need to define warehouse locations, configure stock rules, and enable tracking features to ensure seamless inventory management. Here are the key stages you should go through in the initial setup phase:

For the most reliable guidance, follow Odoo’s official tutorials on Odoo Inventory, which provide step-by-step instructions tailored for businesses of all sizes.

With the right setup, Odoo Inventory simplifies stock tracking, warehouse automation, and supply chain visibility. However, the real power of Odoo Inventory lies in its key features, ranging from smart replenishment to multi-warehouse management.

What Are The Key Features Of Odoo Inventory?

With Odoo Inventory Management features, you can enhance stock control, optimise warehouse operations, and obtain real-time inventory-level insights.

Recently, Odoo 18, launched in 2024, introduced significant improvements to inventory and warehouse efficiency. Specifically, Odoo has enhanced stock flow management, improved push/pull rules, precise lot/serial number tracking, and an advanced dispatch management system. The new Multi-Scan and Barcode Lookup feature allows warehouse staff to scan multiple items simultaneously, increasing efficiency.

Now, let's take a closer look at its key features that can alleviate your typical inventory management pain points:

1. Smart Warehouse Operations

Smart Warehouse Operations in Odoo Inventory refers to an intelligent, automated approach to managing storage locations, stock movements, and warehouse workflows. By leveraging putaway rules, advanced storage strategies, and automated removal policies, businesses can improve space utilisation and reduce order processing times.

See the following screenshot for the dashboard of Odoo’s warehouse management system:

Here are the key solutions:

• Arrange products effectively by managing several storage spaces (aisles, cold storage, etc.).
• Putaway rules can be used to automatically determine the best storage places based on factors including accessibility, product needs, and capacity.
• Set aside specific areas for receiving, packing, sorting, and other warehouse tasks.
• Apply intelligent removal strategies (FIFO, FEFO) to maximise picking routes and decrease waste.
• Utilise role-based to-do lists to help warehouse teams prioritise on-time order fulfilment and maintain focus on daily chores.
• Handle incoming shipments with ease using automated unit conversion and arrival dates supplied by the vendor.
• Specify the return policies for received goods, including evaluation, repair, replenishment, or disposal.

2. Pick, Pack, and Ship with Efficiency

Odoo simplifies the pick, pack, and ship process by automating order fulfillment workflows, reducing errors, and improving shipping accuracy. The system ensures smooth operations by optimising batch picking, barcode-based tracking, and real-time stock updates.

The image below illustrates the "Process a picking" function in Odoo Inventory:

Here are the key solutions:

• Create automatic pick batches by weight, quantity, and transportation carriers.
• Set back orders to prevent delays in fulfilment.
• Assign barcodes to sealed packages to track content and update locations.
• Quickly scrap damaged or outdated items and create comprehensive scrap reports.
• Schedule frequent stock counts.

3. Advanced Inventory Control

Advanced Inventory Control allows businesses to manage inventory across multiple warehouses, automate stock transfers, and track supply chain movements with precision. Custom fulfillment paths ensure efficient order handling while minimising logistics delays.

The screenshot below shows generated routes from the Odoo inventory management system:

Here are the key solutions:

• Easily control inventory across multiple warehouses.
• Use advanced routes to automate stock movements between sites, such as drop-shipping and push/pull rules.
• Create personalised order fulfilment paths based on your selected delivery options (i.e. pickup and post office).

Monitor the subcontracting processes, which involve generating delivery records and performing quality inspections.

4. Real-Time Control & Visibility

With real-time inventory tracking, businesses can monitor stock movements, order status, and warehouse performance instantly. This feature enhances decision-making by providing instant notifications, barcode-based automation, and demand forecasting insights.

The image below shows how barcodes can be assigned directly on the product creation form in Odoo Inventory:

Here are the key solutions:

• Utilise barcode scanners to streamline any warehouse process, including picking, adjustments, and receipts.
• Accepts major barcode formats, including EAN13, EAN14, and GS1.
• Provide customers with a web portal to monitor order status, payments, and shipment information.
• Provide clear return instructions and printable barcodes.
• Get notifications about lead times and low stock levels for new order planning.
• Make use of the smart scheduler to automate tasks based on predictions and product availability.
• Use a single dashboard to find product locations and stock levels.
• Get insights into predicted on-hand, arriving, and outgoing goods with inventory forecasting.
• Determine when an item will run out of stock (date calculation).

5. Automated Replenishment

Odoo Inventory eliminates manual stock monitoring by enabling automated purchase orders, real-time stock replenishment, and just-in-time (JIT) inventory strategies. The image below displays replenishment reports for purchase orders (PO) and manufacturing orders (MO) in Odoo:

Here are the key solutions:

• Trigger an automated quote when the stock drops below preset levels.
• Create production orders, inter-warehouse transfers, or purchase orders based on minimum and maximum stock levels, and set up reordering rules.
• Use comprehensive lead time planning together with just-in-time (JIT) inventory adoption.
• Trigger purchase and manufacturing orders once the sales order is made.

6. Complete Traceability

Odoo’s end-to-end traceability ensures that every product movement is recorded, making compliance, recalls, and after-sales support more manageable. The image below demonstrates how serial numbers are automatically assigned in Odoo Inventory:

Here are the key solutions:

• Utilise comprehensive reports to monitor every stage of the product's journey, from suppliers to customers.
• Automatically initiate purchase orders, warehouse transfers, and delivery orders after confirming a sales order.
• View comprehensive reports to follow products from supplier to customer.
• Use extensive product identity information (lot/serial number) and allow sophisticated tracing and post-purchase services.
• Learn about product costs in real time based on inventory actions such as scraps, stock purchases, etc.
• Keep a complete record of every action taken by users about stock movements, counts, modifications, and approvals.

7. Flexible Product Arrangements

Odoo Inventory allows customised product categorisation, automated stock prioritisation, and vendor price list management to suit diverse business needs. The following screenshot shows shipment labels in PDF format generated in Odoo Inventory:

Here are the key solutions:

• Sort products based on consumable, storable, or service categories.
• Establish automated reminders and prioritise tasks based on the best-before and expiration dates.
• Maintain product variations and use real-time inventory counts for each variant and component.
• Use custom fields to track extra product and inventory data.
• Upload vendor pricing lists that include product data, costs, and delivery schedules.
• Create shipment labels for integrated carriers such as FedEx, DHL, USPS, etc.

8. Inventory Valuation

Odoo Inventory supports multiple costing methods and provides real-time cost insights for accurate financial reporting. The image below showcases an inventory valuation report in Odoo:

Here are the key solutions:

• Select between the average cost (AVCO), standard price costing, and first-in, first-out (FIFO) costing strategies.
• Get insights into costs in real-time based on inventory actions such as scraps, stock purchases, etc.
• Generate precise cost reports on handling fees, taxes, tariffs, and vendor invoices.

9. Strong Integrations & Customisation

• Odoo Inventory seamlessly integrates with other Odoo apps, external shipping carriers, and third-party logistics solutions for enhanced functionality.
• Connect with the Sales app to streamline customers’ return process.
• Utilise 3rd-party carrier integration to determine shipping costs by the weight of the product and the customer's address.
• Integrate with the Purchase app to arrange for recurring orders with pre-specified vendors and volumes to secure lower pricing.
• Establish quality checks at different stages of the warehouse operation.
• Utilise the API to integrate Odoo Inventory with hardware and 3rd-party logistics providers.
• Monitor the product rental cycle.

With its comprehensive inventory management capabilities, Odoo is used across various industries, from retail and e-commerce to manufacturing and logistics. Businesses leverage Odoo Inventory to streamline operations, reduce costs, and enhance supply chain efficiency. But how does this translate into real-world applications?

Let’s explore how companies successfully implement Odoo Inventory to overcome challenges and optimise their workflows.

How Is Odoo Inventory Used In Real-World Business Cases?

Odoo Inventory is widely adopted by businesses across different industries, helping them overcome inventory management challenges and streamline operations.

From resellers and distributors optimising supply chains to end users providing direct feedback on the system's strengths and limitations, real-world experiences highlight both the benefits and areas for improvement. Additionally, for businesses with complex supply chain processes, customising Odoo Inventory can unlock greater efficiency and operational control.

Let’s dive into these real-world applications and insights.

1. STEDI: Scaling automotive lighting with Odoo Inventory

STEDI, a leading Australian manufacturer of high-performance LED automotive lighting, faced significant challenges managing its growing inventory and logistics operations. With an in-house fulfillment center in Melbourne, STEDI needed a solution that could optimise inventory tracking, streamline B2B order processing, and enhance its global supply chain efficiency.

To overcome these challenges, Havi helped STEDI to implement Odoo’s Inventory, Sales, Purchase, and Accounting modules, integrating them with Magento, StarshipIT, and Australia Post. This setup enabled:

• Automated inventory tracking: Orders placed on Magento sync automatically with Odoo, reducing manual data entry errors.
• Seamless warehouse management: The Warehouse Management System (WMS) in Odoo supports barcode scanning, click-and-collect, and batch picking, improving efficiency.
• Optimised purchasing decisions: Integration with Inventory Planner allows real-time demand forecasting, ensuring stock availability without over-purchasing.
• Enhanced shipping operations: The Pick-Pack-Ship automation has minimised errors, allowing STEDI to handle over 3,500 shipments per week with precision.

According to STEDI, their shift to Odoo Inventory and other modules brought measurable improvements such as:

• 3,500+ shipments processed per week with reduced manual errors.
• Real-time inventory tracking, eliminating overselling and stockouts.
• Seamless multi-channel order management, ensuring smooth fulfillment from various platforms.

By centralising sales, inventory, and shipping on a single platform, STEDI improved both efficiency and customer satisfaction. The transformation was so impactful that it contributed to STEDI’s acquisition by GPC Asia Pacific Holdings, the parent company of Repco Australia.

2. What are the pros & cons of Odoo Inventory according to its current users?

Based on real user reviews from G2, Odoo Inventory is praised for its extensive feature set, error reduction, and stock optimisation, but some users highlight difficulties in initial setup and learning. The system helps businesses streamline operations, yet certain aspects may require additional configuration or third-party integrations.

We have compiled the key insights based on real reviews from G2. The table below outlines the most praised and criticised aspects of Odoo Inventory, according to current users:

3. Why is customising Odoo Inventory beneficial for complex operations?

Customising Odoo Inventory allows companies to adapt workflows, automate specific processes, and integrate seamlessly with other systems, ensuring that operations run smoothly. Whether you need advanced routing, industry-specific tracking, or tailored reporting, Odoo’s flexibility supports complex requirements while improving efficiency and accuracy.

If your supply chain involves unique or multi-layered processes, our custom Odoo Inventory solutions can help you fully leverage its capabilities and gain complete control over your operations. Discuss your needs with our team.

References:

• Odoo (2024). Inventory Whitepaper.
• G2. Odoo Inventory.