Purchasing is buying from vendors, at the prices vendors charge. Managing vendors and their pricelists is the foundation of informed purchasing. This piece is about it in Odoo.
Vendors: the foundation of purchasing
A vendor is a supplier the business buys from, and vendors are the foundation of purchasing, every purchase is from a vendor. Managing vendors means keeping vendor records: the suppliers the business buys from, with the information the business needs about them. A business with its vendors properly managed in Odoo has a clear record of who it buys from, which is the starting point for managed purchasing.
Vendor pricelists: the prices vendors charge
Beyond the vendor records themselves, there is the matter of what vendors charge. A vendor charges particular prices for the products it supplies, and a vendor pricelist captures that: the prices a vendor charges for the products the business buys from it. Odoo supports vendor pricelists, so the prices vendors charge are recorded and known, rather than being something a buyer has to remember or look up afresh each time.
Why managing vendor prices matters
Managing vendor pricelists matters because the prices vendors charge are central to purchasing, and to costing. When vendor prices are recorded, purchasing is informed: a buyer knows what a vendor charges, and a purchase order can be placed at the known price rather than the price being uncertain or keyed in afresh each time. And the vendor prices feed cost: the cost of bought goods, which flows into product cost, comes from what vendors charge. Vendor prices recorded and managed mean purchasing and costing both work from known, accurate prices. Vendor prices not managed mean a buyer working from memory and a cost picture built on uncertain figures.
Vendor pricelists and comparing vendors
Where a product can be bought from more than one vendor, managing vendor pricelists also supports comparison. With the prices recorded, a business can see what different vendors charge for the same product, and that informs the choice of which vendor to buy from. A business that manages its vendor pricelists has, in effect, a record of its purchasing options and their prices, which is a basis for buying well rather than buying by habit.
Keeping vendor information current
An honest point. Vendor information, and vendor prices especially, change. Vendors change their prices; the business's vendor relationships change. Managing vendors and vendor pricelists is not a one-time setup but an ongoing discipline of keeping the vendor records and the vendor prices current. Vendor prices that are recorded but out of date are worse than useless, because they look authoritative while being wrong, purchasing or costing on stale vendor prices is purchasing or costing on the wrong figures. A business should keep its vendor pricelists updated as vendor prices genuinely change.
The takeaway
Managing vendors and vendor pricelists in Odoo means keeping records of the suppliers the business buys from and the prices they charge. Vendor records are the foundation of purchasing, every purchase is from a vendor. Vendor pricelists record what vendors charge, so purchasing is informed and costing works from known prices, and so vendors can be compared. Vendor information and prices change, so managing them is an ongoing discipline of keeping the records current. For how we approach Odoo, see our ERP practice.