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Industry

Retail

Project Type

Odoo ERP Implementation & Omnichannel Enablement

Location

USA

Timeline

18 weeks

Team Size

8

Executive Summary

A mid-sized omnichannel retailer with fragmented systems, separate tools for point-of-sale, inventory, eCommerce, and accounting for unified operations on Odoo Enterprise. Within six months, the client achieved 30% operating cost reduction ($200K annually) through inventory automation, labor optimization, and software consolidation. Real-time inventory synchronization across stores eliminated overstocking and stockouts. Integrated POS and scheduling reduced labor costs by 15%. Automated accounting cut manual close time by 40%. The unified platform delivered measurable ROI: inventory holding costs fell 25%, order accuracy improved 20%, and cash conversion accelerated.

Business Challenges

  • Fragmented data silos: Five separate systems (legacy POS, inventory spreadsheets, eCommerce platform, accounting software, manual CRM) created inconsistent product availability, delayed reporting, and reconciliation errors across nine store locations and online channels.
  • Manual inventory reconciliation: Weekly store-level counts and monthly reconciliations consumed 60+ hours monthly; inaccuracy resulted in 12-15% inventory variance, driving stockouts and overstocking across locations.
  • High labor overhead: Dual data entry for inventory and sales, manual scheduling against static budgets, and end-of-day cash reconciliation required 200+ hours monthly; labor cost-to-revenue ratio stood at 32%, above industry benchmarks.
  • Slow order fulfillment: Absence of real-time stock visibility caused order delays (average 3-5 days to confirm availability), lost sales from stockouts, and excess holding costs from safety stock buffers across warehouses.
  • Expensive multi-tool stack: License fees for POS, inventory, eCommerce, and accounting systems totaled $45K annually; poor integration required custom APIs and manual data migration, adding 10-15% overhead to IT operations.

Objective

  • Achieve 30% reduction in annual operating expenses through process automation and system consolidation.
  • Generate $200K in annual cost savings across inventory, labor, software, and fulfillment categories.
  • Implement real-time inventory visibility across all nine locations and eCommerce channels to eliminate stockouts and optimize safety stock levels.
  • Reduce manual labor in store operations, inventory management, and financial closing via workflow automation and data integration.
  • Enable true omnichannel fulfillment: seamless order management, click-and-collect, and unified customer experience across stores and online.
  • Improve order accuracy and reduce fulfillment cycle time from 3-5 days to same-day or next-day confirmation and dispatch.

Key Modules Implemented

  • Inventory Management: Real-time stock tracking, multi-location transfers, automated reorder points, barcode scanning, and lot/serial number tracking ensure inventory accuracy and prevent stockouts across all nine stores.
  • Point of Sale (POS): Integrated cloud-based POS with barcode scanning, offline mode, customer loyalty tracking, and real-time sync to inventory and sales analytics; replaces legacy hardware-dependent systems.
  • Sales & eCommerce: Unified sales order processing, eCommerce integration (Shopify), automated invoice generation, and multi-channel order routing; customers can purchase online and fulfill in-store or vice versa.
  • Purchase Management: Automated purchase order creation based on reorder rules, supplier data centralization, and lead time tracking; reduces maverick spend and improves supplier coordination.
  • Accounting & Finance: Automated invoice-to-cash, bank reconciliation, general ledger posting, and financial reporting; reduces month-end close from 8 days to 2-3 days and manual time by 40%.
  • CRM & Customer Management: Unified customer profiles, purchase history, loyalty programs, and targeted promotions; improves repeat sales by 12-15% and enables personalized omnichannel engagement.
  • Reporting & Business Intelligence: Real-time dashboards for inventory turnover, sales by location/channel, labor productivity, and cash flow; empowers data-driven decisions across all departments.
  • Barcode & Automation Studio: Custom barcode workflows, automated replenishment triggers, and email/SMS notifications for low-stock events and customer order confirmations.

Solution Overview

  • Phased cloud-native implementation: Migrated from on-premise legacy systems to Odoo Enterprise hosted on AWS with PostgreSQL, ensuring zero downtime and iterative knowledge transfer across nine store locations over 14 weeks.
  • Centralized data hub: All retail operations-sales, inventory, purchasing, accounting, CRM-funnel through a single Odoo instance, eliminating data silos and enabling real-time cross-functional visibility.
  • Automated inventory orchestration: Reorder points, demand forecasting, and multi-location stock transfers execute without manual intervention; inventory accuracy improved from 85% to 98%, reducing shrink and carrying costs.
  • Omnichannel order unification: Orders placed online, in-store, or via phone route to a single fulfillment engine; inventory synchronizes in seconds across all channels, enabling click-and-collect and buy-online-pickup-in-store (BOPIS) capabilities.
  • Labor-optimized operations: POS integrated with workforce scheduling; AI-driven scheduling matches staff to sales demand, reducing overstaffing during slow periods and ensuring availability during peaks; end-of-day reconciliation automated reduces manual work.

Architecture & Implementation

#1: Discovery & Requirements Gathering (Weeks 1-2)

  • Mapped current workflows across POS, inventory, purchasing, and accounting; identified 15+ custom reports, integration touchpoints (Shopify, TaxJar, Stripe, ShipStation), and regulatory compliance needs (sales tax nexus, payment processing).

#2: Data Audit & Cleansing (Weeks 2-3)

  • Extracted historical data from five legacy systems; deduplicated 45K+ SKUs, resolved inconsistent product naming, and validated supplier and customer master records; prepared migration dataset in Odoo-compatible format.

#3: Odoo Configuration & Module Setup (Weeks 4-6)

  • Configured Inventory, Sales, Purchase, Accounting, POS, eCommerce, and CRM modules; defined warehouse structure (9 stores + 1 central warehouse), reorder rules, accounting chart of accounts, and multi-company/multi-currency support for future growth.

#4: Custom Development & Integrations (Weeks 6-9)

  • Built custom payment gateway integrations (Stripe/Adyen), tax automation (Avalara/TaxJar), shipping carrier APIs (ShipStation/FedEx), and eCommerce connector (Shopify); automated journal entry creation and barcode scanning workflows via Odoo Studio.

#5: Data Migration & Validation (Weeks 8-10)

  • Migrated 45K SKUs, 250K customer records, 18-month transaction history, and open orders; validated inventory balances, account codes, and customer profiles; performed reconciliation against legacy system to ensure audit compliance.

#6: User Acceptance Testing (Weeks 10-12)

  • Nine store managers, warehouse staff, and finance team tested POS, inventory transfers, order fulfillment, and reporting; logged 90+ test cases; trained superusers on system functionality and troubleshooting.

#7: Go-Live & Hypercare (Weeks 13-14)

  • Phased rollout: headquarters finance team (Week 13), followed by three pilot stores (Week 13), then six remaining stores (Week 14); 24/7 support team on-site for first two weeks; monitored transaction volumes, inventory synchronization, and system performance.

#8: Post-Implementation Optimization (Weeks 15-18)

  • Fine-tuned reorder points based on actual demand, optimized POS workflows based on store feedback, configured advanced reporting dashboards, and trained store staff on inventory audits and exception handling.

Workflow

1

Demand Planning & Forecasting

Store managers and buyers review sales trends in real-time dashboards; system forecasts demand using 18 months of historical data; planners adjust purchase plans monthly.

2

Automated Replenishment

Reorder points trigger automatically when inventory falls below threshold; system generates purchase orders to suppliers, tracks lead times, and schedules expected receipt dates.

3

Goods Receipt & Put-Away

Warehouse staff receive shipments, scan barcodes, and update inventory in real-time; system automatically allocates stock to stores based on demand profiles and transfer rules.

4

Store Inventory Sync

All nine stores see synchronized inventory in real-time; stock levels update at point of sale within seconds; customers can check availability across locations via in-store kiosk or online.

5

Multi-Channel Order Capture

Customers purchase online (Shopify), in-store (POS), or via phone (sales order); system routes all orders to unified fulfillment queue; prioritizes based on channel and delivery method (standard, BOPIS, same-day).

6

Order Fulfillment & Picking

Warehouse or store staff print pick lists optimized by location; barcode scanning confirms picking accuracy; orders dispatch same-day or next-day via integrated shipping carriers (FedEx, UPS).

7

Payment Processing & Accounting

All payments (card, cash, online, gift card) funnel through Odoo; system creates sales invoices, records revenue, and posts to accounting in real-time; no manual journal entries required.

8

Cash Reconciliation & Financial Close

End-of-day POS settlement automatically reconciles cash drawer and payment methods; weekly bank reconciliation runs in 2-3 hours (previously 16+ hours manual); month-end close completes in 2-3 days vs. 8 days previously.

9

Customer Engagement & Loyalty

CRM tracks purchase history, preferences, and loyalty points; system triggers personalized promotions and email campaigns; repeat customer rate improved 12-15% within six months.

Outcome

  • Inventory holding cost reduction of 25% ($50K annually): Automated reorder points, real-time tracking, and improved demand forecasting reduced safety stock by 30%; carrying cost per unit fell from $2.10 to $1.57; inventory turns improved 22% (from 4.2x to 5.1x annually).
  • Labor cost savings of $45K annually (15% reduction): Automated POS reconciliation and barcode-driven inventory transfers eliminated 200+ hours monthly; workforce scheduling integration matched staffing to sales demand, reducing overstaffing by 18%; administrative labor cut by 25%.
  • Software consolidation savings of $18K annually: Consolidated five separate systems into single Odoo cloud instance; reduced annual licenses from $45K to $27K; eliminated custom API maintenance; freed up 10 hours weekly of IT support time.
  • Order processing acceleration: Same-day order confirmation rose from 35% to 85%; fulfillment cycle improved from 3-5 days to 1-2 days; customer complaints about stock unavailability dropped 67%; lost sales from stockouts reduced by estimated $40K annually (operational leverage).
  • Financial & accounting efficiency: Manual month-end close time fell from 8 days to 2-3 days; accounting manual time reduced 40% ($32K annually in labor); invoice accuracy improved 98% (zero reconciliation exceptions); audit-ready records available in real-time.
  • SKU accuracy and shrink reduction: Inventory variance improved from 12-15% to 2-3%; shrinkage reduced 35% ($22K annually); real-time barcode tracking and lot-level traceability ensure product integrity and regulatory compliance.
  • Total quantified annual savings: ~$207K (inventory $50K + labor $45K + software $18K + order processing efficiency $40K + accounting $32K + shrink reduction $22K), aligning with 30% operating cost reduction target.
  • Qualitative outcomes: True omnichannel experience (customers can browse online, check in-store availability, and reserve for pickup); employee satisfaction improved (better schedules, fewer manual errors); data-driven decision-making enabled real-time optimization across all nine locations.

Tech Stack

Core Platform

  • Odoo Enterprise v17
  • cloud-hosted on AWS with auto-scaling
  • Multi-AZ redundancy

Database & Infrastructure

  • PostgreSQL with automated backups (daily)
  • SSL encryption
  • role-based access control
  • Nginx reverse proxy
  • 99.9% uptime SLA

Payment Processing

  • Stripe and Adyen payment gateway integration
  • PCI-DSS Compliant
  • Supports Card
  • ACH
  • Digital Wallets

Tax & Compliance

  • Avalara integration for real-time sales tax calculation
  • Multi-nexus support
  • Automated filing
  • Reporting for all nine store locations

Shipping & Logistics

  • ShipStation connector for FedEx
  • UPS & USPS
  • Real-time rate shopping
  • Automated Label Generation
  • Tracking Updates

eCommerce

  • Shopify connector with two-way inventory sync
  • unified customer data across Odoo and Shopify
  • order routing to fulfillment engine

Barcode & Mobile

  • Mobile barcode scanning app (Odoo native iOS/Android)
  • wireless handheld devices in warehouse
  • offline mode with automatic sync when connection restored

Reporting & Analytics

  • Odoo built-in BI module
  • Custom dashboards for inventory
  • Sales, Labor and cash flow
  • Daily executive summary emails
  • Access to raw data via Odoo API

Integrations & Automation

  • n8n or Zapier for external API calls
  • Custom Odoo Studio automations for email notifications
  • Low-stock alerts, and order confirmations
  • webhook-based real-time inventory sync

Team

  • Project Manager: 1
  • Functional Consultant: 1
  • Business Analyst : 1
  • Odoo Technical Developers: 3
  • Data Migration Specialist: 1
  • Quality Analyst: 1

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