Managing Blanket Orders and Call for Tenders with Odoo
Procurement processes are an essential component of every organization’s operations, comprising the actions involved in acquiring goods and services required to operate. Timely access to resources, cost control, and strong supplier relationships are all ensured by proper management. Conversely, inadequate procurement management can lead to delays, increased expenses, and even legal entanglements. Therefore, precise procurement process management is essential for maintaining an effective and resilient operating structure.
In this article, we will explore how to leverage Odoo 16 for managing Blanket Orders and Calls for Tenders, optimizing your procurement workflow.
Understanding Blanket Orders and Call for Tenders
Before delving into the Odoo 16 functionalities, let’s briefly clarify what blanket orders and call for tenders are:
Blanket Order: It’s also known as a frame contract. This is a long-term purchase agreement between a buyer and a vendor in which the terms and conditions for several purchase orders are settled and given over an established period of time, usually for recurring or continuing procurement needs.
Call for Tenders: A process in which different vendors are invited to bid on a project or supply contract. It enables companies to evaluate proposals and choose the best provider based on price, quality, and other relevant variables.
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Configuring Settings in Odoo
To operate the procurement feature in Odoo, ensure you have the Purchase module installed. Then, navigate to the Settings menu and enable the Purchase Agreements function to get started.
Now that you’re acquainted with the essence of what a blanket order is, let’s look at an example and delve into the Blanket Orders in Odoo 16.
It’s the beginning of 2023, and you’ve established an agreement with a supplier to purchase screws at a fixed price of $0.50 throughout the year. The agreement has a minimum order requirement of 200 units per purchase.
Now, this agreement sets the stage for what happens next:
1. Create the Blanket Order Agreement in Odoo
Begin by accessing the Purchase application. Here, you’ll find the Blanket Orders section under the Orders menu, where you can initiate an agreement that outlines supplier details, terms, and conditions.
Click on New to access the Blanket Order Agreement form, and configure the multiple fields and settings:
Assign: You’ll assign the oversight of the blanket order to a specific user, and select the purchase agreement under which the blanket order is categorized. Note that in Odoo, blanket orders are the only official purchase agreement. However, there’s flexibility to create your own agreement types on the fly.
Pick vendor: Choose the vendor with whom you negotiated this deal. Also, include the product or products of interest or that have been negotiated.
Quantity and price: Finally, specify the quantity and unit price, either as per the vendor’s offer or the agreed-upon terms. In the scenario mentioned earlier, the agreement stipulates a unit price of $0.50, with a mandatory purchase of 200 units.
2. Generate Purchase Orders
With the Blanket Order Agreement in place, you can generate individual purchase orders as required, without redefining terms each time. Odoo 16 will easily link these purchase orders to the corresponding blanket order, ensuring consistency and simplifying the ordering process.
3. Track and Manage
Within the agreement line, easily monitor the quantity of ordered screws and the remaining balance in this Purchase Agreement. This feature facilitates more effective budget management, quantity tracking, and delivery timelines
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Call for Tenders
In Odoo’s latest version, the Call for Tenders feature has undergone significant improvements, making procurement process management more efficient and seamless. Accessing and managing this feature can still be done through the same interface as Blanket Orders, with the addition of creating an exclusive agreement type for Call for Tenders.
This unique agreement type only permits a single winner. Based on the most favorable conditions and terms offered by multiple suppliers for the proposed deal, only the most advantageous Request for Quotation (RFQ) will evolve into a Purchase Order, effectively canceling out alternative business propositions.
Let’s explore how these improvements streamline the Call for Tenders process.
The company is in the midst of a high-demand season for selling desks and needs to source materials like wood for desk legs and glass for table tops from new suppliers to reduce costs.
1. Create Tender Requests
Initiate the tender process by generating a Request for Quotation. Define the requirements, specifying products, quantities, and other relevant details such as arrival dates. Then, add the first vendor to whom you want to send the RFQ.
Tip: Consider creating a simple filter for easier access to the Call for Tenders cases.
2. Add Suppliers to the Bid
Odoo 16 encourages you to involve multiple suppliers in the tender. In the Alternatives tab of the initial RFQ, use the Create Alternative button to send the same RFQ to different vendors. This feature ensures that all RFQs are linked to the same tender process.
Odoo also offers the option to copy or not copy the products into the alternative bid, as well as linking existing RFQs associated with ongoing tenders.
Tip: Consider creating an email template for tenders for more efficiency.
3. Receive and Evaluate Bids
Suppliers will submit their bids, providing detailed information like prices, delivery timelines, and additional terms. Confirm the information and complete the RFQs. Also, you can utilize Odoo’s portal chatter for this type of communication, centralizing bid management and simplifying the evaluation process.
4. Compare and Select Offers
Odoo 16 simplifies the comparison of bids by presenting them side by side. This empowers you to make informed decisions based on factors such as price, expected arrival dates, and quantity. Navigate to the Alternatives tab within the tenders and use the Compare Product Lines button to access the comparison table.
5. Award Contracts
Once you’ve thoroughly evaluated the bids, you can directly award the contract to the chosen supplier within the system.
It’s important to note that when selecting specific RFQ lines, the other purchase documents will show zero balances. As you confirm the chosen RFQ, all other related RFQs will be automatically canceled.
Alternative Option - Awarding Multiple Suppliers
If you need to purchase different products from different suppliers, in the comparison table, select the most valuable lines based on your terms and priorities. However, do not automatically cancel the rest when confirming the first RFQ in the tender process, as at least one of the alternative businesses won’t have a zero line and will remain in draft. Only when you confirm the last RFQ should you cancel the remaining RFQs involved in the tender process to efficiently conclude it.
Odoo 16 offers a powerful solution for streamlining procurement processes, and its benefits are obvious. It has the ability to:
- Enhance efficiency
- Control costs
- Provide real-time transparency
These features equip businesses with the essential tools to thrive in today’s competitive landscape.
Therefore, whether you’re managing ongoing supplier agreements or seeking cost-effective bids, Odoo 16 is your key to simplifying procurement and making informed decisions that drive success.
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