How to Reduce Inventory Carrying Costs by 35% with Odoo

Excess inventory ties up working capital, increases storage costs, and creates risk of obsolescence. One of our clients in the FMCG sector reduced their inventory carrying costs by 35% within six months of implementing Odoo. Here is how they did it.

Step 1: Implement Automated Reorder Rules

Odoo’s reorder rules use min/max stock levels and lead times to automatically trigger purchase orders when stock falls below a threshold. This eliminates both stockouts and overstocking.

Step 2: Enable Demand Forecasting

Using Odoo’s forecasting module, historical sales data is used to predict future demand. The system suggests optimal stock levels for each SKU based on seasonality and trends.