Odoo Purchase Module – Streamlining Procurement Processes

Introduction

Navigating the complexities of eCommerce procurement demands a solution that is both agile and comprehensive. This is where the integration of Odoo’s Purchase Module with a robust eCommerce platform creates a seamless synergy. As an essential component of the broader Odoo development service, the Odoo Purchase Module is specifically tailored to streamline procurement processes, making it an invaluable asset for eCommerce businesses.

By simplifying operations from vendor negotiations to inventory management, this module is a game-changer in the realm of eCommerce development service. In this blog, we’ll explore how the Odoo Purchase Module, a key facet of Odoo’s extensive ERP offerings, revolutionizes procurement strategies and elevates sites to new heights of operational efficiency and effectiveness.

Every business has to buy something from others. Manufacturers have to buy raw materials and packing inventory from their suppliers. Brick-n-mortar business needs goods from other vendors. The same goes for ecommerce businesses.

Therefore, in the past, every business passed through a hectic manual purchase management process, whether B2C or B2B.

With the advancements of various business management technologies and the introduction of software, you can automate the entire purchase cycle from procurement to payment (P2P). The P2P process is a comprehensive workflow consisting of all procurement stages, from initial buying request/quote request to final supplier payment.

Stages of P2P Cycle:

For instance,

1. Identify purchase requirements.

2. Purchase requisition.

3. Generate a request for quotation (RFQ)

4. Buying order creation.

5. Receipt for products.

6. Invoice verification.

7. Invoice approval.

8. Payment.

9. Tracking vendor performance.

Advantages of Odoo Purchase Module

Odoo is a comprehensive suite of ERP systems with various integration capabilities. Odoo purchase management means you have automated your entire procurement to payment (P2P) process synchronized with other software systems in different departments of an organization.

The use of the Odoo purchase management system yields various benefits, such as:

• The Odoo purchase module deals with multiple tasks involved in the purchasing process using its automated tools. It saves buying time, waste, and errors emerging from manual entries.

• Odoo manages inventory levels automatically and keeps them updated with real-time data syncing.

• Odoo is provisioned with supplier/vendor management to help with the real-time perceptibility of supplier connections. So, a business can negotiate better prices with suppliers and save additional charges.

• Odoo offers a business real-time perceptibility of the entire procurement/P2P cycle so the business can make wiser decisions and maximize its supply chain management.

The Odoo purchase module provides such exponential benefits thanks to its outstanding features and functionality. Let’s learn some key features it offers.

Also Read – Guide for Migrating to Odoo: Challenges & Best Practices

Key Features of Odoo Purchase Module

The Odoo purchase module lets you create new purchase orders using various specifications, such as:

• Confirmation data.

• Vendor information.

• Receipt date.

• Purchase representative info.

• Purchase order costs.

• Order billing status.

You can classify purchase orders according to the vendors, representatives, and order date. You can see order as a list, Kanban, pivot, graph, or calendar format.

The module lets you submit quotes to suppliers and respond with their prices and pertinent info. You can construct and send RFQs to the vendor.

The module provides a view of late, waiting, and need-to-be-delivered RFQs. Similarly, you can create quotation requests and send them to vendors through emails, including vendor info, deadlines, product info, etc.

After receiving products, you can check different info, including source documents, schedule date for initial shipping, vendor name and deadline, product name, demand quantity, supplied quantity, a unit of measurements, and shipping details with the carrier, tracking reference, weight for shipping, responsible person, etc.

At the end, you can validate the received order and place a barcode on it.

Purchase Agreement Management:

The purchase agreement specifies terms and conditions between the business and customers with selling costs and lists of items.

However, Odoo provides two types of purchase agreements: call for tenders and blanket orders. The call for tender submodules allows the generation of numerous RFQs and a number of various tenders. The blanket order is typically used to confirm or cancel orders within a set period.

Vendor Management:

The vendor management feature in the Odoo purchase module fosters strong vendor relationships by providing easy access and convenience to various features supporting vendor management.

Odoo purchase management software provides a centralized database to maintain your vendor relationships. It includes contact details, payment terms, and delivery terms. It also lets you classify your suppliers based on categories and track performance over time.

Product Management:

Odoo lets you manage products methodologically by examining products from different categories, including products to sell, buy, rent, subcontract, or expand. You can access product history for buying and selling products by using product profiles. You can manage products using product variance and attributes. You can control product variants at the variant or temple levels.

Also Read – Top Reason Why Your Business Should Switch to Odoo

Vendor Price List Management:

It makes it simple to build and maintain vendor price lists. It lets you establish various price policies for every vendor. It allows adjusting prices to meet vendor-specific demands. It may depend on different factors, including order volume, product category, and delivery location. You can set an expiry date for the price list.

Request for Quotation (RFQ):

You can use the RFQ feature of the Odoo purchase module to invite multiple suppliers to submit quotations for a specific set of products or services. It also lets you compare the quotes easily and select suppliers based on different metrics, such as price, delivery time, and quality of products.

The process for RFQ in the purchase module in Odoo consists of the following main steps:

1. Creating RFQ.

2. Vendor selection.

3. RFQ document generation.

4. Quotation submission.

5. Quotation comparison.

6. Vendor negotiation.

7. Quotation approval workflow.

8. RFQ status tracking.

9. Purchase order integration.

10. Audit trail.

Receipt & Inspection:

You can record product receipts and perform quality inspections directly within the purchase module. You can link receipts to corresponding purchase orders to ensure accuracy in the inventory tracking.

Invoicing:

The Odoo purchase module lets you automate invoicing by linking purchase orders to suppliers’ bills. You can track and manage the payments. You can reconcile vendor invoices with received goods and services.

Reporting & Analytics:

The Odoo purchase module provides excellent reporting and analytics tools to gain deep insights into procurement performance. It lets you monitor various KPIs, including vendor performance, purchase lead time, and procurement costs.

Also Read – An Overview of Odoo and Its Capabilities

User Access & Permission:

You can define user roles and permissions in the Odoo purchase module to control sensitive procurement information. It lets you limit access to critical features and functionality to authenticated users only.

Automation & Workflow:

Odoo lets you set up automation rules and workflow to streamline repetitive tasks and cut manual intervention. With Odoo automation, purchase orders are created when the inventory level falls below a certain threshold.

Wrapping Up

The Odoo Purchase Module provides all the features and functionality for Odoo Purchase Management. Bytes Technolab Inc is a leading Odoo development company working for global clients.

We have a pool of talented Odoo developers and designers with expertise in customization in the Odoo ERP platform.

FAQs Related to Odoo Purchase Module

• How does the Odoo Purchase Module streamline procurement processes?

It automates various procurement tasks such as order creation, vendor communication, and inventory tracking, leading to time savings, error reduction, and more strategic vendor interactions.

• What are some key features of the Odoo Purchase Module?

Key features include purchase order management, vendor management, product management, and vendor price list management.

• How does the module handle vendor relationship management?

It provides a centralized database for vendor information, helping businesses track performance, maintain contact details, and manage negotiations effectively.

• Does the module support different procurement strategies like blanket orders or call for tenders?

Yes, it supports various procurement strategies including blanket orders and call for tenders, offering flexibility for different purchasing requirements.

If your business has unique requirements, consider our Odoo developers the best option at market-competitive rates. Let’s have a scheduled call to discuss your bespoke needs in a detailed way.