Cindy Himawan, Devina Aurellia

Enhancing Sales Through ERP Odoo-Based Intercompany and E-Commerce Integration in Textile SMEs

Introduction

Enhancing sales through erp odoo-based intercompany and e-commerce integration in textile smes. Enhance sales and utilize surplus in textile SMEs with Odoo ERP. Seamlessly integrates intercompany operations and e-commerce for improved inventory, efficiency, and profits.

Abstract

Surplus materials generated from textile production processes often remain underutilized due to the lack of integration between manufacturing and retail operations, resulting in idle inventory, unrecorded transactions, and lost sales opportunities. This study aims to improve sales performance and inventory utilization in textile SMEs through the implementation of Odoo ERP with intercompany and e-commerce integration. The study was conducted in a textile SME consisting of a production unit and a retail unit operating under separate business entities. The System Development Life Cycle (SDLC) using the waterfall model was employed to analyze requirements, design the system, configure Odoo modules, and perform functional testing and user acceptance evaluation. The proposed solution enables the automatic generation of intercompany transactions, including Sales Orders, Purchase Orders, and Vendor Bills, while synchronizing inventory, sales, and accounting information in real time. In addition, the e-commerce module provides a digital sales channel for surplus materials that were previously marketed through conventional methods. The results indicate that the integrated system improves transaction traceability, reduces manual data entry, and enhances inventory visibility across business units. Furthermore, the utilization rate of surplus materials increased from 17% prior to implementation to full absorption through the integrated digital channel during the evaluation period, eliminating idle inventory and creating additional economic value. These findings demonstrate that ERP-enabled intercompany integration can support operational efficiency and strengthen sales performance in textile SMEs.

Review

This study addresses a pertinent and common challenge faced by textile SMEs: the underutilization of surplus materials and the resulting inefficiencies from fragmented operations between production and retail units. By proposing and implementing an Odoo ERP-based solution that integrates intercompany transactions and e-commerce functionalities, the authors aim to significantly enhance sales performance and inventory utilization. The clear identification of the problem—idle inventory, unrecorded transactions, and lost sales opportunities—underscores the practical relevance of this research, offering a tangible approach for SMEs to optimize their business processes through technology adoption. The methodology employed, System Development Life Cycle (SDLC) using the waterfall model, provides a structured approach to system analysis, design, configuration, and testing within a specific textile SME comprising distinct production and retail entities. The implemented solution is described as enabling automatic generation of intercompany transactions and real-time synchronization of critical business data. Crucially, the abstract highlights a significant outcome: the dramatic increase in surplus material utilization from a mere 17% to full absorption via the new digital channel. This quantitative result, alongside improvements in transaction traceability, reduced manual data entry, and enhanced inventory visibility, convincingly demonstrates the immediate operational benefits of the integrated system. The findings convincingly illustrate how ERP-enabled intercompany and e-commerce integration can drive both operational efficiency and strengthen sales performance within the SME context, specifically for textile businesses dealing with surplus materials. While the abstract strongly showcases the benefits within the single case study, a more detailed discussion in the full paper on potential challenges encountered during implementation, the duration of the "evaluation period," and broader generalizability to other SMEs or industries would further enrich the contribution. Nevertheless, this study presents a compelling argument for the strategic adoption of integrated ERP solutions as a viable pathway for SMEs to unlock economic value from previously underutilized resources and and streamline their value chain.

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