Want to streamline your purchase requests, quotes, and orders all in one place? No more digging through emails or chasing down paper trails. This is the magic of Odoo’s Purchase application, and it gets even better with the Purchase Agreement in Odoo.
In this blog, we’ll delve into different Odoo Purchase Agreement types and how each can transform your procurement process.
Understanding Purchase Agreement in Odoo
By default, there are two Odoo Purchase Agreement types- Call for Tender and Blanket Orders. Let’s understand the impact and relevance based on your company’s needs.
Call for Tender in Odoo: Negotiating Power at Your Fingertips
Call for Tender also known as Alternative RFQs in Odoo is a formal invitation to multiple vendors to submit their bids for a specific product or service. This competitive process allows you to compare pricing, terms, and delivery timelines, ultimately selecting the most advantageous offer.
How it works:
- You define your requirements in detail.
- Odoo helps you generate Requests for Quotation (RFQs) based on the CfT.
- You send these RFQs to multiple vendors, inviting them to submit their bids.
- Once the bidding period closes, you can compare offers based on price, quality, and other factors.
- You select the most advantageous proposal and convert it into a purchase order.
Use Cases:
- Complex or High-Value Purchases: For critical procurements where securing the best deal is crucial.
- New Vendor Exploration: When seeking new suppliers for a particular product or service.
- Improved Transparency: Creates a clear and documented bidding process, fostering trust with vendors.
Benefits:
- Enhanced Negotiation: Call for Tender in Odoo fosters competition, driving vendors to offer their best terms to secure your business.
- Price Transparency: Gain valuable insights into market pricing for informed decision-making.
- Vendor Selection: Evaluate a wider pool of vendors, potentially uncovering the best deals.
Blanket Orders in Odoo
Odoo Blanket Orders establish a pre-defined agreement with a single vendor for recurring purchases of specific items within a set timeframe and budget. This simplifies the procurement process for frequently needed goods.
How it works?
- You define the product or service, quantity range, pricing terms, and delivery schedule.
- You can set a maximum spending limit for the agreement period.
- As you need the product, you generate Purchase Orders (POs) within the pre-defined parameters of the Blanket Order.
Use Cases:
- Standardized Products: Ideal for regularly used items with consistent specifications.
- Reliable Vendor: Suitable for established vendors with a proven track record.
- Predictable Demand: Well-suited for situations with stable and predictable purchase requirements.
Benefits:
- Efficiency: Eliminates the need to create new purchase orders for every repeat purchase.
- Cost Savings: Potential for volume discounts negotiated with the chosen vendor.
- Inventory Control: Improved forecasting and inventory management through pre-defined quantities.
Choosing the Right Odoo Purchase Agreement Type
The optimal purchase agreement type depends on your specific needs. But, here’s a quick gist:
Go for CfT when competition, best pricing, and extensive vendor selection are priorities.
Choose Blanket Order for streamlining recurring purchases with a trusted vendor and predictable demand.
Difference between Call for Tender and Blanket Orders in Odoo
|
Factor in Consideration |
Call for Tender | Blanket Order |
|
Competition |
High |
Low |
|
Price Potential |
Lower |
Negotiated (bulk discount) |
|
Business Processes |
Complex or high-value purchases |
Recurring needs for standard products |
| Vendor Factor | May explore new vendors |
Strengthen existing relationship |
Whether you choose CFT or Blanket Order purchase agreement type, remember, that Odoo allows you to configure these agreements to perfectly suit your requirements. So, leverage this functionality and take your purchasing game to the next level!
