Why unbuild orders are a must-know for modern inventory managers in 2025

What is an Unbuild Order (and why 2025 inventory teams love it)

An Unbuild Order is a controlled way to dismantle a finished product back into its components – so you can reclaim parts, correct overproduction or handle returns and quality failures without wrecking your inventory accuracy. 

In Odoo 18 Manufacturing, Unbuild Orders move the finished product out of stock and move the components back in, preserving traceability and balances. 

In 2025’s volatile supply chains, Unbuild Orders are your “reverse manufacturing” lever to unlock usable components instantly without emergency purchase orders or panic expedites.

When to use Unbuild vs Scrap vs Return vs Rework

Real benefits of Unbuild Orders for Inventory Managers

1) Accurate Inventory Counts

Maintain real-time stock accuracy by transferring quantities of both finished goods and individual components instantly after unbuild execution.

Minimize discrepancies that arise from manual disassembly or ad-hoc scrap handling.

2) Smarter Component Recovery

Quickly reclaim valuable components and reuse them in new manufacturing runs, slashing lead times and procurement costs.

Support incident response (e.g., product recalls or customer returns) with traceable, system-driven processes.

3) Sustainable Manufacturing Processes

Reduce material waste by dismantling at-risk or surplus stock for raw or partially fabricated components.

Highlight your organization’s commitment to sustainability – boosting brand value while saving money.

4) Overproduction Correction and Lean Operations

Mistakes happen. Unbuild orders let you adjust for accidental overproduction without waste.

Strengthen lean manufacturing initiatives by empowering teams to treat inventory dynamically, rather than statically.

How Unbuild Orders work in leading ERPs like Odoo 18

1. Navigate to Unbuild Orders. Go to your Manufacturing/Inventory module; find the Unbuild Orders section under Operations.
2. Create a New Unbuild Order. Select the finished product, and your ERP pre-populates the bill of materials.
3. Specify Relevant Details
   • Quantity to unbuild
   • Manufacturing Order reference (for traceability)
   • Source and Destination locations (for seamless logistics)
   • Serial/Lot details (for regulated industries)
4. Execute the Unbuild. Confirm. Inventory gets auto-updated, reflecting new on-hand levels for both products and all components.

Example

What updates automatically (stock, lots/serials and scraps)

• Stock quantities : Odoo decrements the finished product and increments each component according to the BoM, in the correct locations chosen on the order.
• Traceability : If you use lots or serial numbers, Odoo requires/retains tracking during manufacturing; the unbuild flow exposes lot/serial fields so your history stays clean.
• Scrapping unusable components : If any recovered part is not usable (damaged, expired), scrap it right away to keep on-hand realistic.

Common pitfalls – and how to avoid them

Pitfall 1 : Unbuilding with zero (or negative) on-hand
Odoo allows it but clearly warns against it because it introduces inconsistencies. Best practice: only unbuild what actually exists in stock or perform a controlled adjustment first. 

Pitfall 2 : Using the wrong BoM
If the BoM has changed since the product was built, confirm which recipe you’re reversing. You can choose a different BoM before confirming the unbuild. 

Pitfall 3 : Forgetting the MO link
Link the original MO when you have it; it improves auditability and reporting. (Optional but recommended.) 

Pitfall 4 : Not scrapping defective recovered parts
Don’t inflate usable stock  – scrap unusable items immediately. 

Pitfall 5 : Overlooking valuation settings
If Automatic Inventory Valuation isn’t enabled on the product category, your accounts won’t reflect the stock moves automatically. Align with Finance on configuration so unbuilds post the right valuation. 

How manufacturers win with Unbuild Orders

• Tech Assemblers use unbuilds to handle product upgrades and warranty returns, feeding recovered components back into fast-moving lines.
• Automotive Plants leverage unbuild orders for recalls, ensuring parts are accounted for and supply chains remain unbroken.
• Consumer Goods brands rapidly repurpose unsold seasonal stock, boosting agility and limiting waste.

The Future of Inventory Management Starts with Unbuild Orders

Unbuild orders help you squeeze every bit of value from your inventory. They’re not just a workaround – they’re a smart, strategic lever for inventory managers determined to lead in 2025. 

Want this working flawlessly end-to-end – from BoM design to valuation, lots/serial traceability and dashboards?
Pragmatic Techsoft can help you implement, train your team and tune reports so you see value in weeks, not months.
Book a quick consult and we’ll map your unbuild flow to your exact processes.

FAQs

Q : Are unbuild orders only useful for manufacturers?
A : No. Any organization assembling products or handling returns can benefit, especially those looking to maximize component reuse and maintain inventory precision.

Q : How do unbuild orders support sustainability?
A : By reclaiming usable parts instead of scrapping, you drastically cut waste and demonstrate tangible commitment to circular production models.

Q : Will unbuild orders disrupt my current workflows?
A : Integrated into modern ERPs, unbuild orders streamline operations and automate what would otherwise be tedious, error-prone manual work.

Q : Can I automate unbuild order processes?
A : Yes. Most leading platforms – including Odoo – allow workflow automation, ensuring traceability and inventory accuracy with minimal manual intervention.

Q : What’s the first step to start using unbuild orders?
A : Reach out to an ERP expert like Pragmatic Techsoft. We’ll walk you through configuration, training and best practices tailored to your production needs. Talk to us – your smart factory in 2025 depends on it.