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Optimization of Plywood Factory Business Processes through ERP Implementation

Implementation of the Odoo ERP system to optimize procurement, production, and sales processes

Client

A plywood and veneer manufacturer faced significant challenges in production planning due to a deficit raw material market and simultaneous pressure from customer demand.

6 months

Project duration

SERVICES WE PROVIDED

Business Analysis

ERP Development

CHALLENGES

Complex Production and Market Pressures: Balancing efficient single-product batch production with flexible multi-product manufacturing to meet market demands.

Inefficiencies in Production Flow: Peeling line overproducing veneer, causing bottlenecks in later stages. Drying inefficiencies due to frequent material transitions. Log debarking requiring a steady raw material supply but lacking stable input buffers.

High Procurement and Logistics Costs: Raw material procurement complexity due to varying measurement units. Inconsistent classification of raw materials leading to cost fluctuations.

Reverse Production Planning Needs: Systematically calculating raw material requirements based on finished product demand.

Batch-Based Cost Accounting: Understanding product cost variations based on different raw material sources and workforce shifts.

Incorporation of Secondary Products into Business Planning: Managing and planning sales for by-products such as wood chips, sawdust, and “core wood.”

Accurate Forecasting for Procurement and Workforce Planning: Predicting necessary material procurement, hiring, and workforce shifts (one, two, or three-shift operations) based on stock, production buffers, and order pipeline.

Accounting for Equipment Setup and Preventive Maintenance: Factoring in reconfiguration times and scheduled maintenance in production planning.

Solution

Analysis of the Current Situation – Identified bottlenecks in procurement, production, and logistics.

Development of a Process Model – Visualized processes and integrated them into the Odoo system.

Optimization and Implementation of Changes – Restructured procurement and improved warehouse and production management.

Implementation of Odoo – Integrated modules for procurement, sales, warehouse, production, and finance management.

Personnel Training – Developed employee competencies in working with Odoo.

KEY CHANGES WE MADE

Automated Process Management with Odoo ERP

Shift-Based Operational Planning

Structured Article System

Optimized Procurement Model

Accounting for Unit Conversions at Different Stages

Sales and By-Product Management

Batch-based Accounting and Predictive Analytics

Production Planning Integration

Reverse Planning Automation

TEAM COMPOSITION

1 Project Manager

1 ERP Implementation Consultant

1 ERP Development Specialist

Demonstration

Interested in seeing our solution in action? Feel free to inquire!

LEAVE REQUEST

RESULTS WE ACHIEVED

Financial

The Odoo ERP implementation led to a 25% reduction in procurement costs, a 20% boost in sales efficiency, and a 30% drop in non-liquid inventory

Operational

Order processing became 40% faster, quality control improved, and accounting and reporting were fully digitalized.

Strategic

Automated business management strengthened market position, while Odoo’s scalability supports expansion and new market entry.