Two questions arise constantly in a warehouse: when stock comes in, where does it go, and when stock is needed, which of it is taken? Putaway and removal strategies answer those with rules. This piece explains them for manufacturing in Odoo.
Putaway: where stock goes
A putaway strategy governs where received stock is placed within the warehouse. When goods come in, they have to go somewhere, and rather than that being decided ad hoc each time, a putaway strategy applies a rule: this kind of product goes to this kind of location. Odoo supports putaway rules, and they let a manufacturer make stock placement deliberate and consistent. The benefit is order: stock ends up where it should be, products are placed sensibly, and the warehouse is organised rather than haphazard. For a manufacturing warehouse, where components, work in progress, and finished goods all need to be in sensible places, putaway rules help keep that order.
Removal: which stock is taken
A removal strategy governs which stock is taken when stock of a product is needed. When there are several lots or quantities of a product in stock, and some is needed, the removal strategy decides which to take. Odoo supports removal strategies including first-in-first-out, where the oldest stock is taken first, and first-expiry-first-out, where the stock closest to its expiry is taken first. The removal strategy makes the choice of which stock to use a governed rule rather than an arbitrary grab.
Why removal strategies matter for a manufacturer
Removal strategies matter for a manufacturer because which stock is used has real consequences. First-in-first-out, taking the oldest stock first, means stock is used in the order it arrived, so material does not sit indefinitely while newer material is used ahead of it. First-expiry-first-out, taking the stock closest to expiry first, is essential for a manufacturer with perishable materials: it ensures material is used before it expires, minimising the amount that has to be written off, and preventing the use of material that is about to expire when fresher material was available. For a manufacturer, choosing the right removal strategy for its products, especially first-expiry-first-out for perishables, is part of managing stock well and avoiding waste.
Choosing strategies to fit the products
The practical work is choosing putaway and removal strategies that fit the manufacturer's products and warehouse. Putaway rules should reflect a sensible organisation of the warehouse, the right kinds of products going to the right kinds of locations. Removal strategies should fit the products: first-expiry-first-out for perishable materials and products, first-in-first-out where using stock in arrival order is what matters, and so on. A manufacturer should set these deliberately, per product or category, so the rules genuinely serve how its stock should be handled.
The value: governed, consistent handling
The underlying value of putaway and removal strategies is that they make stock handling governed and consistent rather than ad hoc. Without them, where stock goes and which stock is used depend on whoever is handling it at the moment, and the result is a disorganised warehouse and stock used in no particular order, with the waste and confusion that brings. With them, stock handling follows sensible rules every time: stock is placed consistently, and the right stock is used first. For a manufacturer, that consistency supports an organised warehouse and helps avoid the waste of expired or long-stagnant material.
Keep it proportionate
An honest note. Putaway and removal strategies are useful, and they should be set up where they genuinely help, but they should be kept proportionate to the operation. A small, simple warehouse may need only simple strategies, or barely any. A larger, more complex warehouse benefits from more. As with all setup, the aim is rules that genuinely serve the operation, not elaboration for its own sake.
The takeaway
Putaway strategies govern where received stock is placed, keeping a manufacturing warehouse organised; removal strategies govern which stock is taken when stock is needed, with first-in-first-out and first-expiry-first-out among the options. Removal strategies matter for a manufacturer because which stock is used has consequences, especially first-expiry-first-out for perishables, which prevents waste. Choose strategies that fit the products, and keep the setup proportionate to the operation. For how we approach Odoo for manufacturers, see our manufacturing work.