Odoo 17 Tutorial: Make-to-Order Process
Make-to-order (MTO) is a common practice for businesses that offer customized products tailored to the specific wishes of their customers. It is a great method to keep inventory costs low as it means that production begins only after a customer places an order. Yet to successfully execute such a strategy , especially at scale, requires efficient operations. This is where Odoo 17 can help – it allows you to run the entire process from initial sale to order fulfillment all in one place! Let’s take a look at how it works:
How does Odoo 17 help you achieve a fully integrated Make-to-Order process?
Customer Order: The process begins when a customer places an order for a product. This triggers an automatic check in Odoo to determine if the product needs to be manufactured or purchased from a supplier, based on predefined product and inventory configurations.
Automatic Procurement Generation: If the product is set up as MTO, Odoo automatically generates a Request for Quotation (RFQ). This request leads to the creation of a Manufacturing Order (MO) for products that are manufactured in-house or a Purchase Order (PO) for items that need to be sourced from suppliers.
Manufacturing or Purchase: For manufactured items, the Manufacturing Order details the materials and steps required to produce the product via a Bill of Materials (BoM). Odoo centralizes the management of manufacturing processes, tracking material availability and production scheduling. For purchased items, Odoo sends the Purchase Order to the supplier to procure the requested product.
Order Fulfillment: Once the product is manufactured or received from the supplier, it is prepared for delivery to the customer. Odoo’s integrated inventory app helps manage this process, ensuring that the product is correctly dispatched and delivered.
How to set up Make-to-Order processes in Odoo 17
Step 1: Configure Inventory Settings
Go to the Inventory app in Odoo
Navigate to Configuration > Settings > Warehouse
Click on “Multi-Step Routes” to activate Routes
Step 2: Set up the Make to Order Route
Return to the Inventory app and navigate to Configuration > Warehouses
Select your Warehouse and click on the “Routes” smart button
To access the MTO route navigate to Filters > Archived
Click on the Action button to Unarchive the MTO route
The MTO Route is now accessible from your Warehouse settings, configured with automatically applied standard rules and is ready to use!
Step 3: Configure Products as Make-to-Order
In the Inventory app, navigate to Products > Products
Select your product and ensure that both the “Can be Sold” and “Can be Purchased” checkboxes are selected
In the Inventory tab, make sure that both the “Replenish on Order (MTO)” and “Manufacture” checkboxes are selected – this process will not work when only MTO is selected
Step 4: Create a Manufacturing Bill of Materials (BoM)
Go to the Manufacturing app in Odoo
Navigate to Products > Bills of Materials then click on “New” to create a new BoM for your chosen product
Choose the product you established the MTO route for as the BoM’s product
Add the necessary raw materials and their quantities required to produce the chosen product, then save the BoM
Step 5: Validate the Setup
The MTO process is now configured in Odoo and ready to use on your selected products! Now whenever a Sales Order is created for a product or its variants, the system will automatically generate Manufacturing Orders based on the defined rules and BoM.
Let’s test your new Make-to-Order process in action!
Congrats! You are all set up to run MTOs in you Odoo 17 now. Let us see how it work with an example use case:
A customer orders a product which has been internally set up to be made to order. An RFQ is created and accepted
Once the Sales Order is confirmed, a Manufacturing smart button will appear at the top and link you to the ordered product’s Manufacturing Order (MO)
The associated MO will automatically integrate and collect all the information established in previous setups – from the MTO route settings in Inventory, to the BoM rules in Manufacturing, and the SO number from the customer order
Click on the “Plan” button in the Manufacturing Order only when all the components are available and the ordered product is ready to be manufactured
Once the product is manufactured, go to the Sales Order > Delivery smart button
There, you will be able to see that the product is now available and ready to be dispatched – to do so, simply validate the order!
Tip: Make-to-Order routes in Odoo 17 can be used for more than just manufacturing!
As explained above, the MTO route can never be used on its own in Odoo – it only works if it’s also selected alongside either “Manufacture” or “Purchase”.
Though this tutorial focused on the Manufacturing aspect of Make-to-Order rules in Odoo 17, the feature also works for product reselling or purchasing. If you’re looking to set up a Replenish on Order rule, make sure that you tick “Buy” instead of “Manufacture” and that your vendors are configured in the Purchase tab of the respective product forms.
Do you want to know more about Odoo 17? Talk to our experts!
Whether you’re looking to set up efficient MRP processes or you just want to optimize your entire business operations, our Odoo experts are here to help! We’re prepared to support your project with our Odoo 17 know-how and drive your business to success! Contact us to see how we can best adapt Odoo 17 to your unique needs.
much. Chats: An Interview with Eleni Bagklaridou
We’re back for another round with one of our Consultants. We have invited several team members for a series of interviews, where we dive into their thoughts on working in consultancy, on working at much., and much more! As there’s no better way to do this than through...
much. Chats: An Interview with Aurore Le Tumelin
We want to take you behind the scenes and introduce you to all the friendly faces and bright minds here at much. Consulting. As there's no better way to do this than through their own words, we've put together a series of interviews with our team members to pick their...
Odoo 17 Tutorial: Setting up Inventory Routes
Routes play a crucial role in managing inventory workflows. The Routes and Rules feature in Odoo’s Inventory app allows users to define the path that products take as they move through the warehouse. In this step-by-step guide, we will walk you through the process of...
Odoo 17 Tutorial: 3-Way Matching in Purchasing
The 3-way matching feature is a key feature of Odoo’s Purchase app. 3-way matching ensures you pay vendor bills only after receiving the items listed in the purchase order. Odoo 17 makes this easier by linking purchase orders, invoices, and goods received notes...
Odoo 17 Tutorial: Setting up Vendor Pricelists
The Vendor Pricelist feature is a key feature of Odoo’s Purchase App. It allows your purchasing team to manage and track the prices offered by different suppliers for specific products. The process is intuitive in Odoo 17 and allows you to keep an overview and make...
How Order-to-Cash Automation in Odoo 17 Drives Down Costs
The Order-to-Cash (O2C) process is a core cycle of any business that spans from the moment an order is placed right through to when the cash hits your bank. Many companies often manage this process confusingly across different tools or, even worse, manually. It does...
Purchase2Pay in Odoo 17: A 5-Step Guide
Establishing efficient Purchase to Pay (P2P) processes is crucial to the functioning of any business. Luckily, Odoo 17 is here to simplify the path from procurement to payment, all within a centralized platform.Odoo lets you manage your Purchase2Pay processes in one...
much. Consulting is ISAE 3402 certified!
As a leading Odoo Gold Partner, our commitment is to deliver the highest standards of quality and security for your project. Hence, we're thrilled to announce that this commitment has been officially recognized with the ISAE 3402, one of the most extensive...
Odoo Experience 2023 Recap – Catching Up on Key Updates & Breaking News You Might Have Missed!
In visionary keynotes held across two days, Odoo Founder Fabien Pinckaers outlined new strategy moves and unveiled a host of exciting features for Odoo 17, live from the annual flagship event Odoo Experience 2023. If you missed the event or would simply like an...
What to expect from Odoo Experience 2023!
The wait is finally over – after weeks of anticipation, Odoo Experience 2023 is about to start! Get ready for the eagerly awaited unveiling of Odoo 17, and prepare to fully immerse yourself in the world of Odoo for the next three days. With a lineup that includes...
Topics that might also interest you:
much. Chats: An Interview with Eleni Bagklaridou
We’re back for another round with one of our Consultants. We have invited several team members for...
much. Chats: An Interview with Aurore Le Tumelin
We want to take you behind the scenes and introduce you to all the friendly faces and bright minds...
Odoo 17 Tutorial: Setting up Inventory Routes
Routes play a crucial role in managing inventory workflows. The Routes and Rules feature in Odoo’s...