Odoo Purchase - Automate Suppliers Follow-ups based on OTDs
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Odoo Experience 2020 https://youtu.be/Noeiu60qeeA
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Odoo Purchase - Automate Suppliers Follow-ups based on OTDs
- 3. For finances. Up to 90% of a firm’s spendings are from purchasing
- 4. For production continuity. A single missing item can block a whole supply chain
- 5. For customer satisfaction. Customers hate delays!
- 7. Keep an eye on suppliers.
- 8. Meet the challenge: new features of Odoo V14!
- 9. Avoid unreliable suppliers with on- time delivery ratio.
- 11. Prevent delivery failures by sending reminders to suppliers.
- 13. RFQ dashboard + deadlines = less oversights.
- 15. Track your purchase expenses with KPI’s.
- 18. More control.
- 19. Less errors.
- 20. Let’s do it!
- 21. Thank You
- 22. Questions?
Editor's Notes
- Welcome in this talk “Odoo Purchase: automate supplier follow ups based on OTDs”. My name is Gilles Merckx and I am a business analyst at Odoo.
- During 20 minutes, I will present you how the Purchase app in Odoo v14 will ease your purchase process, notably by better following-up your suppliers! Purchase is one of the most widely used application in Odoo and its simplicity might sometimes make us forget how much the purchase activity is critical for many companies. Let me first explain you why Purchase matters, and then I will show you how Odoo v14 enables to manage this important task better than ever.
- So, the question is, Why Purchase Matters? First, it matters for finances! A firm can have up to 90% of its cost related to purchasing and it is often beyond 50%. It is therefore easy to understand that much money can be saved if the purchasing process is well managed!
- Second, purchasing is critical for production continuity. If an item is missing on the production line, all the next steps in the supply chain might be temporarily idle!
- Finally, missing items can delay the delivery of the final product to customers, making them unsatisfied, which in turn will affect profitability and brand name
- Despite being critical, purchasing is a complex task! With the tendency for many companies to reduce inventories in order to cut cost, any purchase order not delivered on time can block the whole supply chain. When a company procures many different products, keeping an eye on everything rapidly becomes a nightmare.
- Because purchase is critical and challenging, you should remain cautious and not blindly trust your suppliers! Keep an eye on them to avoid late deliveries and purchase problems!
- Let me now present you how some new features of Odoo 14 can help purchase managers to meet their challenging task.
- If you make business with many suppliers for many items, without having the time or the tools to closely evaluate them, you might not realize that some of them are not sufficiently reliable. Odoo v14 provides you with an “on-time delivery ratio” to prevent purchase orders from suppliers who do not respect deadlines. As the quantity of units that a supplier has delivered on time divided by the total quantity of units delivered by this supplier.
- Odoo 14 also enables to automatically, or manually, send a reminder to suppliers some days before the delivery date. This is just an extra layer of safety enabling to discover problems earlier in order to find alternatives rather than facing the problem when it is too late.
- To reduce oversights, Odoo 14 further provides a dashboard to make sure that each RFQ is turned into a PO without delay. In addition, the confirmation date has been replaced by deadlines which provides a better visibility on the most urgent RFQ to turn into a PO.
- Because purchasing cheaper is better, Odoo now provides you with some more control on your purchasing expenses through this new dashboard with 4 KPI’s.
- All these cool features are in Odoo 14 and will simplify the purchase activity!
- Odoo 14 offers more control to purchase...
- Which will result in less errors, less late deliveries from suppliers, and in turn, more profits and a higher customer satisfaction!
- Context: let’s imagine we are a smartphone manufacturing company. We do not hold much stock and so any PO delivered too late might block our manufacturing process. It is therefore critical to work with reliable suppliers. Create an RFQ for screens manually and select the vendor from the different options Make a sale or two, with deliveries on time and not, and show how the ratio works. With previous versions, you could already set a warning on vendor or require a purchase order approval. However, the vendor warning was not dynamic, if the supplier improved the ratio, a manual action would have been needed. The purchase order approval was for all vendors. Now, we have a tool that gets updated automatically and that is specific to each vendor. So convenient! Show that you can decide to send automated reminders to all suppliers, or just to risky suppliers. You decide how long in advance these are sent. Reminders can also be sent manually if we prefer or if it is needed even though we had not defined it upfront. To ensure supplier’s followup, you should also track that your RFQs will be turned into a PO on time Put a filter on RFQ For this, check deadlines. It is not the expected confirmation date anymore that is displayed, but the deadline in a clearer way. Check also the RFQ dashboard: what do you still need to send or confirm? For this, you can create an activity that will be visible directly on the list view. For example, you might call a supplier for an important delivery. Track KPIs + reporting (Avg days to purchase: confirmation date of the PO - creation date of the PO) Track POs on time (check whether deadline is there too --- no!) Other Odoo features existing that can help you Show how advanced scheduling options can help you to have some buffer of security Security lead time for sales Security lead time for purchase Days to purchase
- Context: let’s imagine we are a smartphone manufacturing company. We do not hold much stock and so any PO delivered too late might block our manufacturing process. It is therefore critical to work with reliable suppliers. Give context and show in DB Contacts + products (vendor pricelists) Create RFQ Create an RFQ for screens manually and select the vendor Validate a few ‘PO + delivery’ to make the OTD ratio change The warning on vendor is still available and can provide other information, for example related to quality issue. Now, we have also a tool that gets updated automatically and that is specific to each vendor. So convenient! Show that you can decide to send automated reminders to all suppliers, or just to risky suppliers. You decide how long in advance these are sent. Reminders can also be sent manually if we prefer or if it is needed even though we had not defined it upfront + confirmed by vendor button! Follow RFQ: reduce the risk of delivery delay by having RFQs validated on time Put a filter on RFQ For this, check deadlines. It is not the expected confirmation date anymore that is displayed, but the deadline in a clearer way. Check also the RFQ dashboard: what do you still need to send or confirm? For this, you can create an activity that will be visible directly on the list view. For example, you might call a supplier for an important delivery. Turn RFQ into a PO Follow PO: Track POs on time (check whether deadline is there too --- no!) Analyze figures Track KPIs + reporting (Avg days to purchase: confirmation date of the PO - creation date of the PO = delivery date - confirmation date???) Additional feature that can be used and that already existed Show how advanced scheduling options can help you to have some buffer of security Security lead time for sales Security lead time for purchase Days to purchase
- If the date is confirmed by the vendor, what happens? There is a confirm receipt date on the PO, so we can confirm the receipt date, such that it is noted on the PO that the received date is confirmed. However, when a reminder is sent by mail to the supplier, there is a confirm date or update date button, such that, depending on what selects the supplier, Odoo will automatically confirm or update the receipt date. Can we have a view of the Delivery Ratio of a Vendor directly on the Vendor Contact form or in the list view of the purchase App ? Yes, there is a smartbutton The value of the OTD ratio can be accessed from the reporting section of the Purchase app? No, it is a special reporting section only available by clicking on the ratio. However, when you reach it, there is a filter on the vendor in question, and you can remove the filter to have more general reporting. Can we change the message of the automatic reminder? Yes, in mail templates. Can I schedule activities from the list view or mass schedule activities ? Yes, an activity can be scheduled immediately from the list view. However, no mass scheduling is possible, even if you select multiple lines. Is the ratio still visible on PO's after having turned into RFQ? Or is it really a tool to make sure that a RFQ is turned into a PO only if the vendor is reliable? The OTD ratio is visible only on RFQ! Can we send a reminder even if the order is still in the state of RFQ? Yes! By changing the mail template, you could use it as a mean to remind your suppliers to give you a price for your RFQ or confirm the RFQ. Tracking RFQs is not so easy because it is mixed with POs. You can easily filter only RFQs, and set these as favourite if necessary. In addition, the RFQ dashboard enables to filter in one click on the RFQ you desire to focus on. The amount purchased on last 7 days is based on reception or bill? No, it is based on RFQ confirmation. Despite your orders, the Lead time to purchase remains at 0, is it normal? Yes it is, since, for the purpose of this demonstration, I have always confirmed the reception right after having turned the RFQ into PO, such that the system considers that I have been delivered immediately after the purchase order. What if I have a PO that has been delivered on time but for which I could not validate the delivery on time (issue of internet,...): can I remove the quantity from the ratio? (No you can't change the way the ratio is calculated, but you could update the receipt date on the PO before validating the reception if you really want the quantities not to affect the ratio. However, the idea of this ratio is to give an important indication on the supplier's reliability. On the long run, a few units late will not have a strong impact on this indication.) --- the ratio is based on the receipt date of the PO, and not on the scheduled date of the delivery! Scheduled date is initial receipt date, but receipt date can be changed manually. the OTD ratio is calculated from the receipt date. Note that setting the receipt date before putting the first product on the RFQ will refresh automatically the receipt date when the first product is added => put product before date ;) Is it possible to ask for this confirmation to multiple vendor for multiple RFQ's at the same time ? No How should I manage the order deadlines, on which fields is it based ? What if there is a backorder?
- How is calculated the on-time delivery ratio? As the quantity of units that a supplier has delivered on time divided by the total quantity of units delivered by this supplier. As the number of POs delivered on time by a supplier divided by the total number of PO delivered by this supplier. It is not calculated but defined manually by the user on the contact directly.
- How reminders are sent to suppliers to confirm delivery at expected date? Manually Automatically Either manually or automatically
- Which information can not be found on the RFQs list view? The RFQ dashboard and the purchase KPIs. The on-time delivery ratio. The remaining days before that the deadline to turn the RFQ into a PO is met.