Odoo Inventory Management: Module Features, Pricing and User Reviews

By offering a solution that grows with businesses, the Odoo Inventory Management module offers flexibility and scalability to succeed in dynamic industries.

One question: Is your inventory management system limiting your business's growth? Many businesses are not getting where they want to go due to scalability problems, restricted functionality, and poor integration with other systems.

If you’re in these cases, let’s take a closer look at how the Odoo Inventory module can help your business.

What Is The Odoo Inventory Management Module?

Odoo is a leading open-source ERP that helps you manage key business functions efficiently. It provides users with a suite of integrated modules such as CRM, Sales, HRM, Accounting, and so on. Odoo Inventory is one of Odoo's modules.

1. The Module Overview

The Odoo Inventory module is a complete software solution integrating robust inventory and warehouse management features into Odoo. It enables users to keep track of stock levels in real-time, automate key tasks, and optimise warehouse operations. Here are the advantages that make users choose it over other solutions:

• Open-source & licensed formats: Compared to other closed-source systems, Odoo Inventory is open-source, allowing you to access the source code. This enables you to have a complete view of the system infrastructure with transparency and reshape it into whatever your business requires. Odoo also lets you learn from other users, take advantage of their insights, and apply them to your business systems.
• Easy access to the Odoo app ecosystem: While other inventory solutions like Zoho Inventory charge additional fees for different apps, you only have to pay for an Odoo subscription to access all apps. Moreover, Odoo Inventory integrates seamlessly with other modules such as Purchase and Accounting, or third-party solutions, offering you a single source of truth across your operations. For example, you can kickstart with just Odoo Inventory, but if later you require an Accounting app that connects seamlessly with it, you can make use of Odoo Accounting. All you have to do is get the module from the apps list and launch it directly.
• Provide advanced features: You can leverage a range of advanced features such as serial/lot tracking, inventory replenishment, or stock Kanban view to increase control and efficiency.

2. Odoo Inventory Hardware Options

Not only software, but Odoo also offers smooth hardware integration to maximise your warehouse's productivity. The essential hardware options are:

• Barcode Readers: Odoo Inventory is compatible with a range of barcode scanners, such as USB scanners, Bluetooth scanners, and mobile computer scanners. Suggested models are the Zebra TC21, TC26, and TC7x series with greater performance and compatibility.

• Labels Printers: Zebra ZD410 is suggested with the highest compatibility with Odoo's ZPL protocol.

• Weighing Scales: Odoo IoT Box is required for integrating Odoo Inventory with electronic scales. Additionally, Mettler Toledo Ariva is recommended as it's natively supported and provides weight data in real-time for inventory apps.

Overall, verify that the selected hardware can be configured to work with your keyboard layout. Odoo also recommends testing individual gadgets before purchasing due to model variations.

3. How Much Is Odoo Inventory Management?

The Odoo Inventory module is available for Odoo Community (Free) and Enterprise (Free with 1 app only or Paid subscription). However, keep in mind that there will be limitations in features of Odoo Inventory in the Community version. For example, according to Odoo, Barcode-related features are not included in the Odoo Community version:

Here we suggest the main costs that affect your Odoo Inventory purchase:

4. How To Set Up Your First Operation

The most important aspect when setting up Odoo Inventory is to build an organised procedure that lays the groundwork for efficient inventory control. The key stages you should go through in the initial setup phase are:

For the most reliable information, you should follow Odoo's official tutorials. Odoo makes it easy to use for any company by offering comprehensive guidelines for each procedure.

9 Key Features Of The Odoo Inventory App

With Odoo Inventory Management features, you can enhance stock control, optimise warehouse operations, and obtain real-time inventory-level insights. Let's take a closer look at its key features that can alleviate your typical inventory management pain points:

1. Smart Warehouse Operations

• 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

• Create automatic pick batches by weight, quantity, and transportation carriers.
• Set backorders 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

• 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

• 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

• 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 confirming the sales order.

6. Complete Traceability

• 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

• 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

• 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

• 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.

Odoo Inventory’s Users: Explore The Real-World Cases

1. A Manufacturer Of Automotive Lighting Products

STEDI is an Australian manufacturer that produces LED lighting systems for cars. Despite years of operations, the company needed help controlling the global supply chain (large quantities of packages) and effectively completing B2B orders. Therefore, it took a further step and found Odoo Inventory as the best solution.

Odoo Inventory as an ideal solution:

• Integrate with Australia Post, StarshipIT, and Magento to perform print labels and file manifests easily.
• Utilise a warehouse management system with click-and-collect, label printing, and barcode scanning.
• Automate procedures for pick-pack-ship and reduce mistakes.
• Integrate with Inventory Planner to ensure precise creation of purchase orders.

By using Odoo, STEDI was able to:

• Simplified inventory and sales management on a single platform.
• No overselling, more smart purchases, and real-time goods tracking.
• Increased productivity in shipping, handling more than 3,500 shipments per week.

2. A Reseller & Distributor Of Renewable Energy Solutions

A top Australian supplier of renewable energy solutions utilised Odoo to optimise business processes and foster long-term, sustainable expansion. They encountered difficulties with inventory control, cost containment, and productivity.

Odoo Inventory met these requirements with:

• Better inventory costing: Financial transparency was guaranteed by precise average cost computations and landing cost additions.
• Inventory forecasting: Stockouts were avoided and inventory management was optimised with minimum stock level notifications.
• Enhanced user management: Workflows were streamlined and data security was enhanced through role-based access management.
• Manufacturing optimisation: Accuracy was ensured by automatic cost updates and alerts for low stock levels.

3. Pros & Cons By Current Users

To give you the most critical feedback about Odoo Inventory Management, we have generated the advantages and disadvantages that current users provided on G2. All things considered, users commend Odoo Inventory for its extensive feature set and capacity to reduce errors, optimise stock levels, and streamline operations. There are also several limitations to consider:

Odoo Inventory Custom Workflows For Complex Operations

In a nutshell, current users stated that the Odoo Inventory Management module successfully addressed many of their significant concerns:

• Inventory accuracy: Accurate inventory levels and accurate reporting with real-time data and error reduction.
• Effective operations: Automated procedures, multi-location management, and streamlined workflows all contribute to increased operational effectiveness.
• Extensive visibility: Clear insights into stock levels and trends with real-time data and thorough reporting.
• Integration friendliness: A unified business management system with smooth connection with other Odoo modules.
• Scalability: The system grows greatly with enterprises and accommodates their dynamic inventory needs.

If your supply chain processes are significantly complex, our custom development solution can help you fully utilise the capabilities of Odoo Inventory and take charge of your operations.

References:

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