Partnering with an experienced Odoo consultant can significantly streamline your manufacturing setup, especially when implementing advanced workflows like two-step warehouse configuration in Odoo 18. This method enhances inventory accuracy by separating the material preparation stage from actual production, giving businesses tighter control and better visibility over operations.

What Is Two-Step Manufacturing in Odoo 18?

The two-step configuration breaks manufacturing into two clear stages:

1. Material Preparation – Components are picked from the main warehouse and moved to a pre-production staging area.

2. Production Execution – Manufacturing starts only after all materials are available in the staging area.

This workflow ensures materials are ready before production begins, improving accuracy and reducing delays.

Step 1: Enabling Two-Step Manufacturing

To begin, activate the necessary settings:

• Go to Inventory > Configuration > Settings, and enable Multi-Step Routes.

• Then, under Inventory > Configuration > Warehouses, select your warehouse and enable “Pick components and then manufacture (2 steps)” under the Manufacturing section.

Odoo will now generate two transfers when a Manufacturing Order (MO) is created: one for component picking and another for the production process.

Understanding the Auto-Created Route

When two-step manufacturing is enabled, Odoo creates a route:
YourCompany: Pick components and then manufacture

This route includes:

• Rule 1: Move components from the main warehouse (WH/Stock) to the staging area (WH/Pre-Production).

• Rule 2: Transfer staged items to production once the MO is confirmed.

These rules ensure proper tracking of each movement.

Step 2: Product Selection and BOM Setup

Go to Manufacturing > Products > Products and select the product you want to manufacture.

Then, set up the Bill of Materials (BOM):

• Navigate to Manufacturing > Products > Bills of Materials

• Select your product and quantity

• Under the Components tab, list the required materials

• In the Operations tab:

  • Assign work centers (e.g., Assembly 1)

  • Set estimated time per operation

Step 3: Create and Confirm the Manufacturing Order

Create an MO via Manufacturing > Operations > Manufacturing Orders. Select your product (e.g., "Cabinet with Doors"), and the BOM details will auto-fill.

Click Confirm to launch the two-step process.

Step 4: First Step – Component Transfer

Upon confirming the MO, Odoo generates a transfer to move materials from WH/Stock to WH/Pre-Production.

Click the Transfers smart button and validate the movement. This reserves inventory and updates stock records.

Step 5: Second Step – Manufacturing Execution

Once all components are in staging:

• Open the Work Orders tab in the MO

• Begin each operation

• Record time spent and materials used

• Click Done when finished

You can finalize via the Shop Floor module or directly from the MO interface.

Once complete, the MO status updates to Done, with all logs and movements available for review.

Cost Analysis Example

Let’s break down the costs for producing one cabinet with doors:

• Materials: $406

  • 5 wood panels at $80

  • 10 screws at $0.10

  • 10 bolts at $0.50

• Labor: $1.53 over planned (55 seconds @ $100/hr)

Total cost: $407.53—only 0.38% above estimate.
This precision showcases Odoo’s robust cost tracking and accurate planning capabilities.

Conclusion

Using two-step manufacturing in Odoo 18 enhances production visibility, inventory accuracy, and cost control. By following this structured process—from warehouse setup to BOM, and from material staging to final production—you ensure efficient operations and detailed traceability.

Booking an implementation consultant today.