In the building materials industry, high-turnover products—like cement bags, lumber, fasteners, drywall, and roofing shingles—move fast and in high volume. Managing them efficiently is essential to profitability and service quality.
But without clear, data-driven visibility into how these materials are performing, it’s easy to fall into one of two traps:
To avoid these issues, you need to track the right key performance indicators (KPIs) tailored specifically to high-turnover inventory.
Here are the most important KPIs to monitor—and how your ERP system should support them.
How many times a SKU is sold and replaced in a given time period.
Inventory Turnover = Cost of Goods Sold (COGS) ÷ Average Inventory
It tells you if you’re stocking just enough—or too much. High-turnover items should move quickly, but if you’re replenishing too slowly, you may run out.
✅ ERP Tip: Segment this KPI by product category, location, or customer type.
The percentage of customer orders that are fulfilled completely and accurately on the first attempt.
High-turnover items must be available when needed. A low fill rate indicates poor stock planning, leading to partial shipments or delays.
✅ Target: 95%+ for your top 50 high-velocity SKUs.
How often a SKU is unavailable when needed—either for customer orders or internal transfers.
Frequent stockouts can cripple your delivery performance, increase backorders, and force costly last-minute purchases.
✅ ERP Tip: Set automated alerts when high-turnover SKUs fall below minimum thresholds.
How many days of sales you can support with current stock levels.
This KPI helps you stay lean. Carrying 90 days of supply for a product that sells out weekly is a red flag.
✅ Best Practice: Monitor DoS weekly for your fastest-moving SKUs, especially during peak seasons.
The percentage of items counted that match what your ERP system says is on hand.
Inaccurate stock data leads to stockouts, delays, and poor replenishment decisions—especially when product is moving fast.
✅ Tip: Use barcode scanning or RFID to automate high-frequency cycle counts on high-velocity products.
How much gross margin you earn for every dollar invested in inventory.
Even if a product moves fast, it may not be profitable. GMROII helps you balance velocity with margin.
✅ Use it to prioritize your most profitable fast movers—not just the ones that sell quickly.
How effective your reorder thresholds are at preventing stockouts without overstocking.
Inaccurate reorder points = too much safety stock or too many rush orders.
✅ ERP Integration: Your system should calculate dynamic reorder points based on real-time sales velocity and lead time.
The consistency of supplier delivery timelines for high-demand SKUs.
Inconsistent lead times increase the risk of stockouts, especially when product turns rapidly.
✅ Pro tip: Flag suppliers with erratic lead times in your ERP and adjust buffer stock accordingly.
Managing high-turnover inventory isn’t about guessing—it’s about tracking the right metrics and using them to guide daily operations. With the right KPIs and ERP-driven alerts, you’ll avoid overstocks, reduce waste, and keep customers satisfied with on-time, complete deliveries.
📊 Need help building dashboards for high-turnover product KPIs? We’ll set up real-time reporting inside your ERP to track what matters—without drowning in data.
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