What KPIs to Track for Seasonal inventory planning for building materials

Seasonal inventory planning is only as good as the metrics behind it. You can forecast, stock up, and prep your teams—but without the right key performance indicators (KPIs), it’s impossible to know if your strategy is working or where you’re losing time, money, or inventory.

Whether you’re planning for spring concrete demand or winter insulation spikes, tracking the right KPIs helps you measure performance, spot problems early, and improve future planning cycles.

Here are the most important KPIs to track for seasonal inventory planning in building materials distribution—and how your ERP system plays a critical role.

• Seasonal Forecast Accuracy (% Error)

What it measures:

How close your forecasted seasonal demand was to actual sales during a given time period.

Why it matters:

A high variance between projected and actual demand leads to stockouts or excess inventory—both of which hurt your bottom line.

How to track it:

Your ERP should compare forecasted quantities to real sales volume, SKU by SKU, across all yards.

🎯 Target: Under 10% variance for top-selling seasonal SKUs.

• Inventory Turnover (Seasonal SKU Category)

What it measures:

How many times you’ve sold and replaced seasonal inventory during the season.

Why it matters:

Low turnover could signal overstocking or poor sales. High turnover with stockouts means you’re selling fast—but not replenishing fast enough.

How to track it:

Segment seasonal SKUs and calculate turnover weekly during peak months. Use ERP data to adjust future replenishment levels.

🎯 Target: Balanced turnover rate that meets demand without frequent stockouts or aging inventory.

• Fill Rate for Seasonal Orders

What it measures:

The percentage of seasonal customer orders that were fulfilled completely on the first attempt.

Why it matters:

Your customers don’t want partial shipments, especially during peak season when job site timelines are tight.

How to track it:

Your ERP should log all seasonal SKUs tied to each order, and flag backorders or missed line items.

🎯 Target: 95%+ first-time fill rate on seasonal inventory.

• Days of Supply on Hand (by Yard and SKU)

What it measures:

How many days your current inventory can support sales, based on recent demand patterns.

Why it matters:

This helps you avoid overstocking slow yards while ensuring busy yards don’t run dry.

How to track it:

Set up dashboards in your ERP to monitor real-time days of supply per location, adjusted for seasonally forecasted sales.

🎯 Target: Maintain 15–30 days of seasonal supply during peak months, adjusted by SKU and region.

• Aging Inventory (Post-Season Carryover)

What it measures:

How much seasonal stock remains unsold past its demand window.

Why it matters:

Carrying outdated seasonal stock ties up space and capital—and may lead to waste if the product becomes unsellable next year.

How to track it:

Use your ERP to flag all seasonal SKUs with >90 days of aging after the season ends. Create reports segmented by SKU, vendor, and yard.

🎯 Target: Less than 10% of seasonal inventory aging out post-season.

• Return Rate on Seasonal Items

What it measures:

How often customers return seasonal materials due to incorrect delivery, over-ordering, or defects.

Why it matters:

High return rates during peak season disrupt operations and eat into margins.

How to track it:

Track return reasons in your ERP by season and product category. Identify whether it’s a fulfillment issue or a forecasting problem.

🎯 Target: Seasonal return rates under 2–3% for stocked SKUs.

• Vendor On-Time Delivery Rate (Seasonal POs)

What it measures:

How often vendors deliver seasonal products on or before the promised date.

Why it matters:

If key vendors miss deadlines, your entire seasonal plan can collapse. Reliable vendors are essential to successful execution.

How to track it:

Your ERP should log PO creation date, expected delivery date, and actual receipt date for every vendor.

🎯 Target: 95%+ on-time delivery rate for pre-season or in-season restocks.

Final Thoughts

Seasonal inventory success doesn’t just come from good guesses or even good planning—it comes from measuring performance. When you track the right KPIs and analyze them inside your ERP system, you gain the insight needed to improve each year, reduce waste, and serve your customers better during their busiest times.

📊 Want help setting up these KPIs inside your ERP dashboards? Let’s tailor your seasonal reporting for smarter decisions.