Implemented Odoo ERP for an Auto Component Company with Complex Demand Forecasts.

STREAMLINING MATERIAL AND PURCHASE MANAGEMENT

Client

The auto component industry is highly competitive and complex, where managing materials and purchase planning is critical for ensuring profitability. Our client was an auto component company with multiple customers, and they faced significant challenges in managing their material requirements and purchase planning due to the constantly changing demand forecasts.

Problem Statement:

Our client, an auto component company, faced significant challenges in managing their material requirements and purchase planning due to the constantly changing demand forecasts from their multiple customers. The customers provided a rolling forecast for several months, and the final forecast was provided only one month in advance. This added complexity as the client had to plan their purchases smartly to avoid overbuying or underbuying materials. The limited view of their inventory levels led to frequent stockouts and increased lead times for material procurement, which impacted their production schedules and customer commitments.

Solution:

To address these challenges, we recommended implementing Odoo, an open-source ERP system that provides a comprehensive suite of applications for managing various business processes, including inventory, procurement, and production planning. We conducted a detailed study of the client's business processes and customized Odoo to meet their specific requirements.

Inventory Management: We implemented the inventory management module of Odoo to help the client maintain optimal inventory levels. We set up automatic reorder points for each item, which triggered purchase orders whenever stock levels fell below the specified levels. This ensured that the client always had adequate stock to fulfil customer orders and minimized the risk of stockouts.

Purchase Management: We customized the purchase management module of Odoo to enable the client to manage their procurement processes effectively. We integrated the purchase module with the inventory module to ensure that purchase orders were automatically generated based on the inventory levels. We also set up a vendor rating system to help the client evaluate and select the best vendors based on their performance.

Production Planning: We implemented the production planning module of Odoo to help the client plan their production schedules effectively. We set up a master production schedule based on the demand forecasts from their customers. We also integrated the production module with the inventory and purchase modules to ensure that the production schedules were aligned with the material availability.

Result:

Our implementation of Odoo helped the client streamline their material and purchase management processes and gave them detailed insights into their inventory levels, purchase orders, and production schedules. We customized and implemented Odoo to meet the unique demands of the client, which helped them effectively manage the constantly changing demand forecasts from their multiple customers.

The customized solution provided the client with detailed insights into their inventory levels, purchase orders, and production schedules, which helped them make informed decisions and improve their profitability. They were able to reduce their lead times for material procurement, which improved their production schedules and customer commitments. The client also experienced significant cost savings due to better inventory management and vendor selection.

In summary, the implementation of Odoo, customized to meet the unique demand of the client, proved to be an effective solution for managing the complex requirements of the auto component industry.

Conclusion:

The implementation of Odoo helped our client overcome the challenges of managing complex demand forecasts and streamlining their material and purchase management processes. Our customized solution provided them with detailed insights into their inventory levels, purchase orders, and production schedules, which helped them make informed decisions and improve their profitability. Odoo proved to be an effective solution for managing the complex requirements of the auto component industry.