Odoo General

Odoo in Cosmetic Industry Management

April 25, 2018 · 4 minutes read

Odoo in Cosmetic Industry Management

Odoo is the most dominating ERP solution these days because of its features and functionalities. It acts as a management software offering a wide range of application that an organization depends upon. In short, it serves as a complete suite of enterprising solution for all businesses in different size and character. This blog helps you to understand the potentialities of Odoo, how they can be implemented in a Cosmetic Manufacturing company.

We very well know that Odoo is an all-in-one business software, including CRM, website and e-commerce, billing, accounting, manufacturing, warehouse and project management, and inventory management system. The efficiency of Odoo is par excellent in catering to minute needs of the business. Let us see how a cosmetics company manufacturing processes can be made simpler with Odoo.

Cosmetics manufacturing industry comes up with different product variants and Odoo has great functionality for managing the manufacturing processes for all saleable products.

For instance, you can create manufacturing orders in Odoo with certain details:

  • The product name for which the manufacturing order is created.
  • The bill of materials of that product.
  • The quantity of product to be produced.
  • The scheduled date.
  • The raw materials location.
  • The finished products location.

The following benefits can be tapped into cosmetics companies via using Odoo:

  • Managing to route
  • Managing the bill of material
  • Managing purchase orders
  • Managing sales orders
  • Managing lot traceability
  • Managing the company removal strategy

Let us look in detail now.

1. Managing to route in cosmetics companies
Odoo can manage advanced push or pull route configurations by managing product manufacturing chains and also managing default locations per product.

Odoo helps you with to define routes within your warehouse according to business needs, such as quality control, after sales services or supplier returns.

It also helps rental management, by generating automated return moves for rented products.

2. Managing the bill of materials in a cosmetics company
In Odoo, each product may have multiple BoMs associated with it, but a BoM can only be associated with a single product. A single BoM can, however, describe multiple variants of the same product.

3. Managing the purchase orders of a cosmetics company
To every purchase made in Odoo has a Purchase Order.

The PO will generate an invoice, and depending on the contract with your supplier, you will be required to pay the invoice before or after the delivery.

When a purchase order is approved, the stock in the inventory will be increased.

4. Managing the sales orders of a cosmetics company
The sales order is a confirmation document sent to the customers before delivering the products or services. A sales order (SO) can be created once the quote is accepted by your prospective customer. After generating a sales order, an invoice will be created and payment will be made by the customer. After this, the product will be reduced in the inventory.

5. Managing lot traceability in Cosmetics Company manufacturing
The double-entry management in open ERP enables you to run very advanced traceability. All operations are formalized in terms of stock moves, so it is very easy to search for the cause of any gaps in stock moves. In Odoo, there are two types of traceability:

Upstream traceability:- This runs from the raw materials received from the supplier, and follows the chain to the finished products delivered to customers.

Downstream traceability:- This follows the product in the other direction, from customer to the different suppliers of raw materials.

6. Managing the removal strategy of Cosmetics Company manufacturing
When a product movement needs to be done, Odoo will find all available products that can be assigned to shipping. How Odoo assigns these products depends on the removal strategy that is defined on the product category, or on the location. In Odoo, there are three types of removal strategies:

FIFO ( First In First Out )
A ‘first in first out’ strategy states that the products that were stocked first will move out first. Companies should use the FIFO method if they are selling perishable products. Companies selling products with relatively short demand cycles, such as lipsticks or creams, also may have to pick FIFO to ensure they will not expire.

How do you select FIFO in Odoo?
Go to Inventory ‣ Configuration ‣ Locations. Open the stock location, and set the ‘FIFO’ removal strategy.

LIFO (Last In First Out)
In LIFO, the products which are brought in last, move out first. LIFO is used for products which do not have a shelf life.


Leave a Reply

Your email address will not be published. Required fields are marked *