Optimize your Supply Chain with Odoo

Challenges within the supply chain?

Within Odoo, each process step can be set up for proper continuation of the entire supply chain, also known as the production chain. It includes, among other things, the timely execution of purchases, increasing delivery times, taking into account internal production time and, of course, delivery to the customer. If there is a delay within one of these steps, this can have a direct impact on the supply chain, everything is connected. By properly setting up data fields and safety margins, disappointments are a thing of the past and promises to the customer are kept.

Odoo works with different data fields. Filling in these data fields realistically is of great importance for a smooth supply chain. If unrealistic data fields are entered, the chain will quickly fill up and the work will pile up. 

If a delay occurs at the supplier, the customer must be informed immediately. If security margins have been set, it is important to inform the customer if they are overwritten. Understanding is created with timely information, and friction can arise in the case of delays that have not been announced. With Odoo you can get ahead of this.

Date fields in Odoo

Different safety margins can be increased in Odoo so that the supply chain remains intact, without congestion. These margins can be set within the Odoo configuration, under inventory and advanced planning.

Take, for example, the "safety delivery time before sale". Here you can enter the number of days that serve as a margin of error on the promised delivery date to the customer. Should a delay arise, this margin of error will compensate for the delay, without direct consequences for the "chain" and promises to the customer.

In addition, there is also a margin to be entered for the days to purchase parts. Depending on the capacity in the relevant purchasing department, a purchase order is confirmed within a certain time frame. Allow enough margin for this. If a company works with minimal stock and purchases are made on a weekly basis, enter this margin as realistically as possible for the continuity of the chain.

There may also be a "safety margin for the delivery time of the purchases". In doing so, receipts are planned earlier to avoid possible delays. Any delay of the supplier is taken care of so that there will be no consequences for the further course of the shipment.

Overview of advanced planning safety margins

Date fields at the product level

Various data fields can be entered on the product card. This concerns, among other things, delivery time to customer, delivery time of supplier and production times. Here, too, margins must be increased as much as possible in order to keep promises.

Purchases are made at product level, but also at BOM level when it concerns a "production product". When adding a supplier, price and delivery time are entered. This delivery time is independent of the margins mentioned within the configuration, which are the (extra) safety margins. 

Specific receipt date

Customers may wish to receive a product on a specific date. When creating the order, you can choose a specific delivery date under "other info". Odoo then automatically counts back on the various data fields and ensures proper follow-up of the supply chain. An example is given below:

Customer Jansen orders a product from his supplier on 31 March, indicating that he wants it to be delivered by 31 May at the latest. Due to the different safety margins, Odoo will calculate back when a purchase must take place. Upon receipt of the product, it is prepared for shipment to customer Jansen. Due to the "safety delivery time for sale", it is ensured that the product is shipped on time and delivered no later than May 31. With a margin of two days, Mr. Jansen may therefore receive the product as early as 29 May.

The above example shows that Odoo calculates the data fields itself. If a product had to be delivered faster than specified on the product card and configuration margins, then it would have already been ordered in the past. Obviously, this is not realistic in practice, with the result that the supply chain “gets stuck” and there is no “smooth” course. Some flexibility is required (such as manual actions) to provide for the customer after order deadlines have passed.

It is advisable to analyze the data fields in Odoo afterward and to make adjustments to a situation that is better suited to practice (incl. Margins to continue to guarantee the continuity of the supply chain).

A manufacturing order

A product that consists of several parts and must be produced has a bill of materials. These parts are ordered separately and as soon as completely manufactured into one whole. Extra time is also scheduled for this.

The different raw materials can have different delivery times. The number of days until delivery to the customer must therefore exceed the delivery time of the parts to be ordered.

The number of days required for manufacturing is also indicated on the product card, under stock. Only after this is the 'salable product' made ready for shipment.

Sending the order

The last step in the chain involves sending the order. The safety delivery time before sale ensures the timely sending of the delivery to the customer. The promised date is thus guaranteed as far as possible. In the event of a delay at an earlier stage in the chain, there is therefore still a buffer here. 

If there is a delay with the carrier, this margin may have already been consumed by circumstances earlier in the chain. It is advisable to analyze where most of the customers come from and to adjust delivery times and margins accordingly. The carrier may be involved, or special arrangements may be made. 

Finally, controlling the supply chain is a challenge that involves the company, the supplier, and the customer, among others. The common goal is to bring value and efficiency together. With Odoo you have come to the right place! 

Optimize your Supply Chain with Odoo
Odoo Experts April 25, 2021
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