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Industry

Lumber Distribution

Project Type

Lumber Inventory Modernization with Odoo ERP

Location

USA

Timeline

6 months

Team Size

8

Executive Summary

A mid-sized hardwood lumber distributor in the United States was struggling with inaccurate lumber inventory, slow order-to-delivery cycles, and complex dimensional management across multiple yards. By implementing an Odoo-based lumber inventory management software solution, the distributor centralized inventory control, barcode-driven warehouse operations, and lumber-specific purchase and sales workflows with automated unit-of-measure conversions for board feet, pieces, and bundles. The unified Odoo ERP solution connected sales, procurement, warehouse, and accounting, introduced ABC inventory segmentation with mobile cycle counting, and standardized product hierarchies across hardwood grades, softwood species, dimensional attributes, and lot-based traceability. As a result, the distributor achieved 91% inventory accuracy across all dimensional variants and bundles, reduced stockouts by 25%, accelerated pick-to-pack-ship time by 30–40%, cut cycle counting effort by 60–70%, and improved on-time delivery performance by 12%, creating a scalable Odoo lumber ERP blueprint for future growth.

Business Challenges

  • Manual Order Picking & Fulfillment Delays: Reliance on paper-based pick lists, non-standard product labeling, and the absence of barcode-directed picking caused slow, error-prone order fulfillment, hurting on-time delivery and customer satisfaction across lumber yards.
  • Complex Dimensional Unit Conversions & Cost Allocation: Managing lumber SKUs across board feet, linear feet, pieces, bundles, and pallets without automated conversion rules made accurate quoting, landed cost allocation, and margin analysis extremely difficult for sales and finance teams.
  • Inefficient Cycle Counting & Reconciliation in Large Yards: Manual physical counts across sprawling lumber inventory locations consumed weeks of labor, produced frequent variances, and delayed inventory corrections, limiting real-time visibility into true on-hand stock..
  • Disconnected procurement, sales, warehouse, and accounting processes: Purchase orders, sales orders, inventory, and accounting data lived in separate systems and spreadsheets, preventing real-time stock reservations, proactive replenishment, and clear visibility into cash flow, vendor performance, and job-based lumber costs.
  • Fragmented Inventory Tracking Across Hardwood & Softwood SKUs: Multi-location lumber operations using legacy tools could not reliably track species, grades (FAS, 1F, etc), thickness, length, and bundle compositions, leading to recurring stockouts on high-demand items, excess inventory on slow movers, and poor lumber inventory accuracy overall.

Objective

  • Establish unified, real-time inventory visibility across all hardwood grades (FAS, 1F, #1 Common, #2 Common), softwood species, dimensional variants, and lot codes to achieve minimum 90% inventory accuracy across all warehouse locations.
  • Implement barcode-driven receiving (GRN with quality inspection), directed picking (optimized warehouse zones), and mobile cycle counting workflows to eliminate manual data entry and reduce fulfillment cycle time.
  • Automate unit-of-measure conversions and lumber-specific calculations (board feet to pieces, linear feet to bundles, pricing per UoM) to enable accurate quoting, transparent cost allocation, and landed cost transparency.
  • Deploy demand-driven reordering, ABC inventory segmentation, safety stock policies, and lead-time visibility to minimize stockout events and reduce working capital tied up in excess inventory.
  • Unify procurement, sales, warehouse, and accounting operations through a single ERP platform to streamline order-to-cash cycles, improve supplier visibility, and enable integrated financial reporting.
  • Equip management and operations teams with real-time dashboards, KPI reporting, and analytics on inventory turns, stockout trends, vendor performance, and on-time delivery metrics.

Key Modules Implemented

  • Inventory & Warehouse Management: Real-time tracking of lumber inventory across multiple yards/locations, dimensional variant management (thickness, length, grade, species), lot and serial numbering for traceability, ABC cycle counting automation, barcode-enabled receiving, putaway, and picking operations.
  • Barcode Management & Mobile Warehouse Execution: SKU barcode design and printing (with dimensional attributes), mobile app-enabled goods receipt note (GRN) scanning, directed pick-to-light operations, pack verification, and cycle count workflows to reduce transcription errors and accelerate warehouse processes.
  • Purchase Module & Supplier Management: Vendor RFQ generation with dimensional specifications, purchase order creation with lead-time tracking, goods receipt note matching to POs, landed cost allocation (freight, tariffs, handling), advance payment splitting, and supplier performance scorecard.
  • Sales Order & Lumber Quoting: Quote generation with automatic unit-of-measure conversion (board feet, pieces, bundles, pallets), sales order confirmation, real-time available-to-promise (ATP) stock checks, customer order history, and pricing rule engine for species, grade, and volume tiers.
  • Accounting & Finance: Three-way invoice matching (PO, GRN, invoice), accounts payable management, landed cost capitalization, advance payment reconciliation, cost variance reporting, and profitability analysis by customer, product family, and order.
  • Manufacturing/MRP & Custom Cutting: Production order generation for cut-to-order items, bill-of-material (BOM) management for lumber bundles and custom pack configurations, waste tracking and yield analysis, and integration with cutting/milling operations.
  • Quality & Inspection Management: Inbound quality inspections triggered at goods receipt, grade and dimensional compliance validation, defect documentation and photo capture, and hold-release workflows tied to receiving.
  • Landed Cost & Shipping Integration: Automated freight cost allocation, customs and duty tracking, logistics partner integrations (FedEx, UPS, carrier EDI), real-time shipment visibility, and exception management.
  • Reporting, Analytics & Dashboards: Custom reports for inventory aging, slow-moving SKUs, stockout analysis by product family, demand forecasting by species and grade, on-time delivery performance, cost variance analysis, and cash flow impact modeling.

Solution Overview

  • Unified Lumber ERP Platform: Consolidated quote-to-cash, procurement-to-pay, and order-to-fulfillment workflows into a single modular Odoo ERP instance, eliminating data silos and reducing manual re-entry between sales, purchasing, warehouse, and accounting teams.
  • Hardwood & Softwood Product Hierarchy with Dimensional Attributes: Implemented flexible product master with custom attributes (thickness, length, width, grade/FAS standard, species, kiln-dried/green status, bundle composition, ISPM15 certification status) enabling accurate SKU generation, automated unit conversions, and species-specific costing.
  • Barcode-Driven Warehouse Execution End-to-End: Deployed mobile barcode scanning at goods receipt (with inbound quality validation), directed pick operations (order-optimized warehouse zone routing), pack verification, and ABC cycle count automation via tablets, reducing manual errors and accelerating throughput.
  • Advanced ABC Inventory Policies & Reordering Logic: Configured ABC inventory segmentation by revenue contribution, automated reorder point calculation based on lead time and demand variability, safety stock thresholds, and system-generated purchase requisitions to balance service levels with inventory carrying costs.
  • Real-Time Dashboards & Operational Analytics: Designed intuitive, role-based dashboards for warehouse, sales, procurement, and finance teams displaying inventory accuracy, stockout trends by product family, picking efficiency metrics, on-time delivery status, vendor scorecards, and cost variance highlights.

Architecture & Implementation

#1: Discovery, Audit & Data Assessment

  • Conducted detailed business process workshops with warehouse, sales, procurement, and accounting teams; audited legacy inventory system, product SKU structures, supplier database, and historical sales data; identified gaps in dimensional attribute mapping and defined new product hierarchy aligned to hardwood grading standards (FAS, 1F, #1 Common, #2 Common) and softwood classifications.

#2: Odoo Configuration & Product Master Setup

  • Configured Odoo multi-warehouse structure with zone-based location hierarchies (receiving dock, staging area, picking zone, shipping area); designed product templates with dimensional attributes (thickness, length, width, grade, species, moisture status); created UoM conversion chains (board feet ↔ pieces ↔ bundles ↔ pallets); imported and validated cleansed supplier and customer master data.

#3: Comprehensive Inventory Recount & Baseline Establishment

  • Executed full physical inventory count across all yard locations; reconciled counts against legacy system balances; documented and investigated variances (shrinkage, misplacement, obsolescence); loaded validated balances into Odoo as baseline for accuracy benchmarking.

#4: Barcode Design, Label Production & Warehouse Infrastructure

  • Designed barcode label templates incorporating SKU, lot code, dimensional attributes (thickness, length, grade), and species; deployed barcode scanners and mobile devices in receiving, picking, and cycle count zones; established barcode sequence generation rules; configured mobile app security and scanning protocols.

#5: Procurement & Purchase Order Workflow Configuration

  • Set up purchase workflows with advance payment splits for large lumber orders, landed cost templates (freight, tariffs, handling fee allocation), supplier portal access, EDI integration for major vendors, and metrics tracking (on-time receipt %, quality acceptance rate).

#6: Sales Order, ATP & Manufacturing Workflow Setup

  • Configured sales order workflows with real-time ATP checks by warehouse location, unit-of-measure conversion logic embedded in quotes, stock reservation to prevent overbooking, and automatic manufacturing order triggering for cut-to-order lumber configurations; created pick, pack, and ship work instructions integrated with barcode scanning.

#7: Cycle Counting Automation & Variance Workflows

  • Implemented ABC-based cycle count scheduling prioritizing high-value hardwood inventory, mobile-enabled counting via Odoo Barcode app, automated variance detection and reconciliation workflows, and integration with accounting for inventory adjustment posting.

#8: Integration, Testing & UAT

  • Integrated Odoo with carrier systems (FedEx, UPS) for shipment tracking, configured EDI connections to major lumber suppliers and wholesalers, executed comprehensive system and user acceptance testing across all modules, validated data migration integrity and barcode scanning accuracy.

#9: Team Training & Change Management

  • Delivered role-specific training for warehouse staff (receiving, picking, cycle counting), sales team (quoting, ATP checks), procurement team (purchase workflows, supplier management), and accounting team (invoice matching, cost allocation); designated super-users for ongoing support and issue resolution.

#10: Phased Go-Live, Stabilization & Continuous Improvement

  • Deployed to production with warehouse receiving and inventory management first, followed by sales order fulfillment, then procurement workflows; monitored system performance, barcode accuracy, and adoption metrics; captured team feedback and refined configurations; established monthly KPI reviews and iteratively optimized safety stock policies, reorder points, and warehouse layouts based on picking patterns.

Workflow

1

Customer Lumber Inquiry → Quote with Dimensional Conversion

Sales representative receives RFQ specifying hardwood species (oak, maple, ash), grade (FAS, #1 Common), thickness, length, and desired bundle configuration. Odoo automatically calculates board footage, converts units (e.g., board feet to pieces or bundles), applies tiered pricing by grade and volume, and generates professional quotation with lead time visibility and cost transparency.

2

Quote Acceptance → Sales Order & Real-Time Stock Reservation

Customer confirms order; system creates sales order, executes real-time ATP check across warehouse locations by lot and grade, reserves allocated stock to prevent overbooking, and triggers manufacturing order if cut-to-order lumber is required.

3

Supplier Lumber Receipt → Barcode GRN & Quality Inspection

Inbound lumber shipment arrives at receiving dock; warehouse staff scan shipping document and product barcodes; system matches receipt to purchase order; mobile app prompts quality validation (dimensional check, grade verification, damage inspection); GRN is recorded with lot/batch assignment and automatically three-way matched to vendor invoice.

4

Warehouse Putaway & Lot Management

Validated lumber inventory is scanned and assigned to optimal warehouse location and lot code; barcode labels capture all dimensional and traceability attributes; inventory balances update in real-time, reflecting new availability and enabling immediate ATP visibility for sales.

5

Optimized Order Picking & Directed Warehouse Operations

Sales order triggers optimized pick wave; warehouse system calculates most efficient pick sequence across zones; staff scan source location barcode and product SKU, system confirms pick quantity and grade selection, staff consolidate picks into shipment container, and final barcode verification ensures pick accuracy before packing.

6

ABC Cycle Counting & Mobile Variance Management

ABC schedule triggers mobile-enabled cycle count of high-value hardwood inventory; warehouse staff scan location and count physical stock against system balance using tablet app; system detects and documents variances with root-cause classification (shrinkage, misplacement, damage, error); approved adjustments post automatically to inventory and accounting.

7

Shipment Preparation, Carrier Integration & Billing

Packed lumber shipment is weighed, measured (cubiscan), and labeled with carrier barcode; shipment tracking data flows back to Odoo in real-time; invoice is auto-generated from sales order actuals with dimensional quantities and landed costs applied; customer receives delivery proof, invoice, and shipment tracking simultaneously.

Outcome

  • Achieved 91% Inventory Accuracy across all hardwood grades, softwood species, dimensional variants (board feet, pieces, bundles), and lot codes through barcoded receiving with quality inspection, directed picking, real-time movement tracking, and ABC-based mobile cycle counting with automated variance reconciliation.
  • Reduced Stockout Events by 25% via ABC-based inventory segmentation, demand-driven reorder point automation with lead-time factoring, optimized safety stock policies, continuous lead-time visibility, and enhanced demand forecasting analytics enabling proactive replenishment.
  • Shortened Pick-to-Pack-Ship Time by 30-40% through barcode-directed picking with zone optimization, elimination of manual picking lists, concurrent packing operations, and automated shipment label generation integrated with carrier systems.
  • Cut Cycle Counting Labor & Duration by 60-70% with ABC scheduling prioritizing high-value inventory, mobile app-enabled counting eliminating manual tallies, automated variance detection and posting, and reduced investigation cycles through integrated root-cause workflows.
  • Improved On-Time Delivery Performance by 12% through real-time ATP visibility enabling realistic promised dates, unified sales and fulfillment operations reducing order processing delays, integrated carrier tracking with exception management, and enhanced order consolidation across customer orders.

Tech Stack

Core ERP Platform

  • Odoo Enterprise Edition v16

Mobile Barcode Scanning

  • Odoo Barcode App (native iOS/Android application for GRN, picking, and cycle counting)

Cloud Infrastructure

  • Amazon AWS EC2 (scalable compute)
  • RDS PostgreSQL (managed database)
  • S3 (document storage)

Database & Backend

  • PostgreSQL relational database with automated backups and replication

Carrier Integration

  • FedEx SmartPost API
  • UPS WorldShip
  • DHL eCommerce Integration for shipment tracking and label generation

EDI & Supplier Integration

  • Vendor-agnostic EDI via SFTP or AS2 for purchase orders and invoice transmission to major lumber wholesalers

REST API & Webhooks

  • Odoo native REST API for custom integrations
  • Third-party order feeds
  • Logistics partner data exchange

Reporting & Business Intelligence

  • Odoo built-in reporting engine
  • Python-based custom dashboards
  • Optional Power BI connector for advanced analytics

Security & Compliance

  • Role-based access control (RBAC)
  • SSL/TLS encrypted data transmission
  • PCI DSS compliance for payment processing
  • Audit logging with change tracking

Team

  • Project Manager: 1
  • Odoo ERP Consultant: 1
  • Business Analyst : 1
  • Odoo Developer: 3
  • Data Migration Specialist: 1
  • Support Analyst: 1

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