Key Takeaways

✓Reordering Rules (Min/Max) vs MTO: Choosing wrong = inventory chaos

✓Accurate vendor lead times prevent planning failures (garbage in = garbage out)

✓Blanket Orders lock pricing and bypass repeated negotiation

✓3-Way Matching = gold standard for financial control (PO + Receipt + Bill)

✓PO Approval Gates enforce spending limits before purchases go out

Quick Answer: Make Purchasing Boring

Manual POs and endless email threads are common but completely unnecessary. Odoo's procurement module can automatically generate purchase orders based on actual demand and lead times. Whether you're a drop-shipper or manufacturer, automating your purchasing workflow is the single biggest efficiency gain you can make in your supply chain. This guide covers 5 best practices to move from "reactive" to "automated."

5 Best Practices for Automated Purchasing

Reordering Rules (Min/Max) vs. MTO

The Foundation of Automation

⚠️ Warning: Most users confuse these two. Choosing the wrong one is the #1 reason for inventory chaos.

A. Reordering Rules (Make-to-Stock)

Best for: High-volume items you always want on shelf

Examples: Screws, best-selling T-shirts

How it works: You tell Odoo "Keep at least 10, but no more than 100."

Automation: When stock dips below 10, Odoo automatically creates a draft PO to bring you back to 100.

Setup: Inventory → Configuration → Reordering Rules

B. Make-to-Order (MTO)

Best for: Custom/expensive items you never keep in stock

Examples: Specialized server equipment, custom furniture

How it works: A Sales Order must exist first. Odoo creates PO for exact quantity needed, only when needed.

Automation: PO linked directly to Sales Order.

Setup: Product form → Route: "Buy" + "Make-to-Order"

Accurate Vendor Lead Times

Garbage In, Garbage Out

⚠️ The Problem: If you tell Odoo a vendor delivers in 3 days, but they actually take 3 weeks, your entire planning schedule is useless. You will always be late.

The Fix: Configure Vendor Lead Times

Go to Product Form → Purchase tab

Enter "Delivery Lead Time" for each vendor

Example: Vendor A: 14 days, Vendor B: 7 days

Crucial: This time is added to your internal "Security Lead Time" to give you a buffer.

Blanket Orders (Long-Term Contracts)

Lock in Pricing and Bypass Negotiation

If you have a contract with a supplier for 1,000 units over a year at a fixed price, a Blanket Order formalizes this.

✓ Benefit

Every time Odoo's automated Reordering Rules trigger a PO, it automatically uses the agreed-upon price from the Blanket Order—preventing price negotiation or checking.

Setup

Go to Purchase → Orders → Blanket Orders

Create order detailing: product, price, expected delivery dates

Implementing 3-Way Matching

Stop Paying for Missing Goods

Gold Standard: 3-Way Matching ensures you only pay if the bill matches the PO AND the goods are actually received.

The Workflow

Purchase Order

Created by Purchasing

Receipt

Verified by Warehouse

Vendor Bill

Entered by Accounting

⚠️ The Check

Odoo will automatically show a red warning on the Vendor Bill if the quantity billed is greater than the quantity received. The bill cannot be confirmed by the user.

Purchase Order (PO) Approval Gates

Enforce Spending Limits

You need financial oversight before large purchases go out the door.

The Fix

Go to Purchase → Configuration → Settings

Enable "Purchase Order Approval"

Set the minimum amount requiring approval (e.g., $6,000)

Under threshold: PO can be confirmed by user

Over threshold: PO stays in "To Approve" status until Manager validates

Ready to automate your procurement workflow?

Frequently Asked Questions

How do I handle "Dropshipping" in Odoo?

Dropshipping is a route. Go to Settings → Inventory and enable Dropshipping. On the product, check the "Dropship" route. When you sell this product, Odoo creates a PO with the Customer's Address as the delivery location, bypassing your warehouse entirely.

Can Odoo combine multiple reordering rules into one PO?

Yes. Odoo groups demands by Vendor. If 10 different products all need to be bought from "Vendor A," Odoo will merge them into a single Purchase Order to save on shipping costs. This usually happens when you run the "Replenishment" scheduler.

What is the "Replenishment Report"?

This is your control tower. Go to Inventory → Operations → Replenishment. It shows everything Odoo thinks you should buy. You can review it, modify quantities, and click "Order Once" to trigger the POs manually if you don't trust full automation yet.

What's the difference between Min/Max and MTO?

Min/Max (Reordering Rules) keeps stock levels between thresholds—great for high-volume items you always want on shelf. Make-to-Order (MTO) only purchases when a Sales Order exists—ideal for custom or expensive items you never stock. Choosing the wrong strategy is the #1 cause of inventory chaos.

How does 3-Way Matching prevent overpayment?

3-Way Matching compares three documents: Purchase Order (what you ordered), Receipt (what you received), and Vendor Bill (what you're being charged). If the bill quantity exceeds the received quantity, Odoo shows a red warning and blocks payment until resolved.

Conclusion: Trust the System

The goal of Odoo procurement is to make purchasing boring. It should happen in the background, reliably and accurately.

By setting up correct Reordering Rules, accurate Lead Times, and 3-Way Matching, you free up your procurement team to negotiate better prices instead of typing POs.

Is Your Purchasing Stuck in the 90s?

Let Braincuber automate your supply chain logic. Stop typing POs manually and start buying smarter.

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