What is Vendor Management?

Your Accounting Operations

Vendor management is a term describing the processes that a business uses to manage its suppliers or vendors. Vendor management has multiple activities including research and sourcing vendors, getting requests for quotations, negotiation, signing contracts, handling relationships, allocating assignments, evaluating performance, vendor bill management, and more. Keeping all these activities well managed, a business requires a lot of skills, time, and resources. Therefore, businesses having the product or service supplier need to have a robust vendor management system that helps them source, manage, and track their vendors. Supplier management software not only helps you manage and track vendors but also maintains a strong relationship with the vendors.

Odoo Vendor Management Software

Building stable and strong relationships with vendors is a significant aspect of the purchase management department. In other words, retaining a well-performing vendor for the long run is beneficial for any business therefore having a smart vendor management system is necessary. Odoo supplier management software is a platform that is perfect for all-size businesses and helps them manage multiple vendors with ease. When a business manages its vendors efficiently, it enables them to keep a sound relationship with its suppliers.

Odoo vendor management feature allows you to manage your vendor efficiently so that you can easily execute contract negotiations and get the best prices from them. Odoo makes it really seamless to manage your vendors in a smoother way. This also lets companies identify the best vendors for service and product procurement. Moreover, it automates the processes associated with your suppliers. There are a plethora of advanced supplier management features in Odoo such as you can define multiple vendors for a product or service, manage multiple vendor bills, grant access to the vendor portal, and more.

All Accounting Requirements

Utilize Vendor Management Feature in Odoo

First, you need to install the Purchase module and when you open the application, you can view the option to view and create vendors. Here, you can manage and track all your vendors at once. This centralized vendor management software helps you see all the RFQs, purchase orders, vendors, vendor price lists, purchase agreements, and much more crucial procurement information.

Utilize Vendor Management Feature in Odoo
  • In the Odoo purchase module, you can effortlessly manage the suppliers or vendors, keep a tab on each of them, track their sales history, schedule activities for them, and make payments to them.
  • Also, easily generate RFQs for your vendors and get their approval then convert RFQs into purchase orders in a single click.
  • Get the available products delivered to your warehouse locations and you can have track of the product dispatch status.
  • Moreover, the integration of the purchase management system with the sales, inventory, and accounting module makes the procurement process simpler and more efficient.
  • Odoo's supplier management solution ensures you get outstanding product or service deliverability and drive value from your suppliers.
  • Find the most suitable supplier for your business, do the price negotiations, and onboard them as your vendors.

Features of Odoo Vendor Management System

Easy Vendor Creation

You can easily create vendors in Odoo. In the purchase module, go to the Vendor menu and you will see the option to create vendors. Add the details like their name, address, email, contact number, and more.

Moreover, you will get multiple tabs on a vendor record, including Contacts & Addresses, Sales & Purchase, Invoicing, and Internal Notes. Here you can add more information like delivery methods, payment terms, currency, and more.

Easy Vendor Creation
Vendor Price List

Vendor Price List

In the Odoo purchase module, you can create multiple vendor price lists which will help you get the specific prices for a specific time period or for specific products.

You need to go to the purchase module and then select the Vendor Price List option under the Configuration menu. You can set the vendor prices manually by adding vendor name, vendor product name, and delivery lead time. product name(that you have in your Odoo), product variant (if the product has any), the number of products (for which the prices will be applicable), validity (to make sure that the prices are only valid for the mentioned duration), and more.

Moreover, if your vendor provides you with the price list document then you can easily import the vendor price list into the system.

Vendor Bills Management

When you go to the Odoo accounting or invoicing module, you can create, edit, and view all your vendor bills. Add vendor details, payment reference, bill reference, etc., and then select the products, their quantity, price, tax, and more. Now, you can confirm the bill to post is entered into your account. Further, pay your vendor by clicking on the register payment button.

Also, you can get a refund in case of any defect in the product or in case you receive the wrong product. You can add a credit note and get a refund from your supplier.

Vendor Bills Management
Odoo Vendor Portal

Odoo Vendor Portal

Odoo has an option to grant its contacts access to the portal where they can view and track their documents such as RFQs, purchase orders, bills, projects, and tasks.

The vendor portal establishes better communications between the business and its vendors. From the vendor portal, vendors will be able to view their documents and track their status. This feature helps you make vendor management and procurement operations more efficient.

Set Warnings

This open-source solution has an advanced feature of enabling informative or blocking warnings on the customers, products, and vendors. You can enable the warning for vendors and products by checking the Warning box in the purchase module configuration. Now, you can add an alert message to the vendor and products as per your business requirements.

For example, if you have set a warning on a vendor that "Do not set until approved by the purchase manager" the purchase team member will get this message before sending the RFQ or PO to the vendor.

Set Warnings
Dropshipping

Dropshipping

You can activate the dropshipping feature by checking the Dropshipping box in the purchase module configuration settings. This option will allow you to request your suppliers to ship the products directly to your customers.

This feature is useful in the case of a business that does not have a physical warehouse location and sells its customers by getting the products delivered from their vendors. Also, sometimes when a business needs to deliver the product immediately to their customers without getting it processed through their warehouse. Odoo's drop-shipping feature is helping thousands of businesses to sell without investing a lot in the warehouses.

Multiple Agreements Types

You can find the multiple purchase agreements type in Odoo such as Call for Tender and Blanket Order. You can create multiple purchase agreement types and use them during the bidding process.

You can define agreement selection type, quantities, and more. The call for tender is a type of agreement that needs to be launched every time a business wants to procure goods. But on the other hand, a blanket order is a type of purchase agreement that allows businesses to have a long-term agreement, where you will get the products for a certain period of time at the same price. The prices will not fluctuate even after the market price goes up or down.

Multiple Agreements Types
Multiple Vendors For a Product

Multiple Vendors For a Product

One of the best and most efficient Odoo vendor management features is adding multiple vendors to a single product. You can add multiple vendors for a single product or service.

The vendors can be from different regions, have different prices, and have different currencies. You can define different prices, currencies, and delivery lead times to multiple vendors for a product.

How Does Odoo Vendor Management Help Businesses?

When you invest in Odoo ERP, you will get the best vendor management solution that will help you manage your vendor operations seamlessly. Enumerated below are some of the abilities served by the Odoo vendor management feature.

  • Vendor Sourcing and Selection
  • Vendor Onboarding
  • Contract Management
  • Vendor Bills Management
  • Vendor Performance Tracking
  • Supplier Relationship Management
Odoo Vendor Management Help Businesses
Meet the Experts

Frequently Asked Questions

Why is Vendor management important?

Vendor management is as important as customer management. Vendor management is a crucial aspect of business success and an effective vendor management solution helps companies control product & service costs, reduce potential risks associated with vendors, deliver quality products and services to clients, and derive maximum value from their suppliers in the long run.

What is a vendor in Odoo?

Odoo purchase module has a feature that allows businesses to add their vendors and their details. It helps them efficiently manage and track their suppliers.

How do I create a vendor in Odoo?

Go to the Purchase module >> Orders >> Vendors, when you click on vendors you will be able to view and create vendors. You can add details like name, address, email, phone number, and more.

Can I import a list of vendors in Odoo?

Yes, you can import multiple vendors in your Odoo. There is an import button on the Vendor screen. You need to have the list of vendors in an excel format then match the columns of your excel sheet with Odoo's vendor screen field. Then you can easily import all your vendors to Odoo.

What is the vendor pricelist?

A vendor pricelist has crucial information like product, product variant (if a product has any), price of the product (per unit), quantity to purchase from the supplier, validity (duration for the price lists), and name of the company.

How to set Pricelist in Odoo?

You need to go to the Purchase Module >> Configuration Menu >> Vendor Price List, here you can create or import multiple vendor price lists.

How to track vendor performance in Odoo?

In Odoo, you will find the reporting section in every module. Similarly, in Odoo's purchase module, you can see the reporting section. Here you can see the performance of your vendors using the filter and group by option.