Advanced Features on Odoo’s Material Requirements Planning Used By High-Volume Retailer
Novobi delivered an inventory management system with multiple advanced features built on Odoo’s framework including a custom Smart Inventory system for ArtNaturals, a high-volume retailer in the personal care space.
Personal and Skin Care
ArtNaturals is an eco- and human-conscious beauty brand specializing in hair care, skin care, essential oils, and personal care products. They promote natural beauty products and believe that their products should be as free-spirited as natural beauty!
Their sister company, Day to Day Imports, is the world’s leading manufacturer and distributor of high-quality auto parts and accessories, pet supplies, and home and garden supplies, tools, and products.
Together, these companies see as many as 100k orders per day during peak shopping seasons, with a daily average of 8,000 orders. Not only are they high-volume, but they are also multi-channel retailers with over 30 marketplaces and distributors.
A more reliable forecasting system is needed to predict demand
Build a statistical demand forecasting platform using multi-channel integrations for data sourcing
Incomplete reporting limits the ability to monitor stock levels in real time to minimize understock risks
Create a comprehensive stock report complete with an out-of-stock countdown
Manual analysis of stock needs, cost, and lead times makes purchase planning difficult and time-consuming
Build a replenishment and purchasing module to assist with purchasing decisions
“We wanted something that was easy to use. We wanted something that is very robust and has a lot of functionality.”
– Zion Benarroch | VP of Operations, ArtNaturals
ArtNaturals’ rapid growth left the company urgently seeking an inventory system fit for high-volume retailers. The business requires reliable demand forecasting, real-time reporting, and efficient replenishment and purchasing process. ArtNaturals’ team identified Odoo as a thought leader in the ERP industry and “how all ERPs will work in the future.”
While Odoo offers hundreds of thousands of turnkey software solutions, ArtNaturals still found functionality gaps between apps available in Odoo and the features they needed. Their requirements include advanced features that are key in their further success.
A More Reliable Demand Forecasting System Is Needed
Efficient inventory management is practically impossible without demand forecasting. Reliable demand forecasting lays the foundation for significant decisions to be made regarding inventory. Without quick access to a demand forecast report, ArtNaturals was left with guesswork or time-consuming manual data analysis to help make critical purchasing decisions in short periods of time.
As the company has grown, it has become apparent that having demand forecasting in a dependable inventory system is a top priority for the business.
Real Time Stock Monitoring
Incomplete Reporting Limits Ability to Monitor Stock Levels and Minimize Understock Risks.
Minimizing understock risk is essential for any retailer, but it is vital for a brand that is starting to grow its market share. Understock issues can lead to customer dissatisfaction and bad reviews, and possible additional costs for rush deliveries and lost sales. Without easy access to a real-time stock report, ArtNaturals could not properly monitor its inventory to keep optimal stock levels.
Manual Analysis of Stock Needs, Cost, and Lead Time Complicates Purchase Planning
ArtNaturals recognized that their manual process for purchase planning was not sustainable as their demand increased. Gathering data from different sources and using multiple tools to replenish their stock had become complex and time-consuming.
With their legacy processes, making good purchasing decisions had become challenging. This issue lead ArtNaturals to look for a robust inventory management system with advanced purchase planning features to help make faster decisions to maintain their stock levels.
“What we liked about Odoo was that there’s hundreds of thousands apps that you can just plug in and install and start using it right away.”
– Zion Benarroch | VP of Operations, ArtNaturals
The framework for ArtNaturals inventory solution is a combination of Odoo and Novobi’s pre-built inventory app, Smart Inventory. ArtNaturals’ workflow required features that are not readily available in either of the systems. Still, the flexibility of Odoo and Smart Inventory allowed Novobi to design a solution that addressed their specific requirements for demand forecasting, inventory reporting, and purchase planning.
Statistical Demand Forecasting Using Multi-Channel Integrations
ArtNaturals opted for Statistical Demand Forecasting. Novobi utilized their pre-built multi-channel connector to gather data from the company’s Walmart, Target, and Amazon online stores.
With historical sales data available, Novobi customized a demand forecasting feature that fit with ArtNaturals’ inventory methodology.
With Statistical Demand Forecasting, ArtNaturals now has quick access to accurate information needed for reliable analysis for better purchasing decisions.
Comprehensive Stock Report Complete with Out Of Stock Countdown
ArtNaturals found that the standard understock and overstock report available on Odoo still lacked the information needed to monitor their stock levels properly. Novobi customized a stock report that provides additional information including an inventory of finished goods, components items, and raw materials. It also shows the “Max Possibility” report of how many finished goods the company can manufacture based on raw materials available.
For a quick snapshot of inventory needs, the report also highlights the number of days until each item is out of stock, the quantity needed, and the ordering status such as “enough”, “replenish”, and “urgent.”
With this robust stock report and the inventory dashboard, ArtNaturals can easily monitor and manage their stock levels and stock health.
Replenishment and Purchasing Tools to Help with Purchasing Decisions
Novobi paired ArtNaturals’ inventory reporting with smart tools for faster and easier purchase planning and a complete inventory solution. The system gives product composition recommendations allowing the client to set up multiple sets of BOMs for a finished good. Novobi also added enhancements to Odoo’s out-of-the-box reordering rules to match the client’s preferences. Along with recommending the quantity needed, ArtNaturals’ material planner also receives make v. buy recommendations and cost and lead time analysis for quicker vendor selection. All these features were made available with the addition of Novobi’s Smart Inventory on ArtNaturals’s existing Odoo system.
“We started with understock status which flagged the products that needed to be replenished and at what quantity. After the fit-gap analysis, we added a ‘Max Possibility’ feature to define the max amount of product that can be made from raw materials available. In addition, we also deployed tools to help with replenishment and purchase planning.”
– Duy Vu | Business Analyst, Novobi
The Novobi Approach
Novobi follows a strict implementation schedule following CMMI and Scrum frameworks with weekly sprints, ensuring that clients can expect demos and workable solutions weekly or biweekly. Novobi also follows best practices in configuration and customization to ensure the system functions correctly and protects client’s intellectual property. This approach makes it easier and more cost-effective to upgrade in the future.
Novobi's Methodology & Certifications
Novobi delivered an inventory management system that focuses on robust reporting. ArtNaturals’ workflow depends on the accuracy and timeliness of these reports. The enhancements built on Odoo out-of-the-box functionality as well as on Novobi’s Smart Inventory app are features that address the business’s concerns regarding information accuracy and access.
With these customizations, ArtNaturals can have confidence that their system will provide them with the correct information when needed. And with automation, ArtNaturals also eliminates much of the complexity in their workflow and saves time on material planning.
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