Managing high-turnover inventory is one of the most demanding aspects of running a warehouse in the building materials industry. Products like cement, steel rods, tile adhesives, screws, and bagged mortar are constantly in motion—arriving, staging, shipping, and restocking in tight cycles.
Without the right strategy in place, this can lead to:
Frequent stockouts
Costly emergency orders
Overstocking of the wrong items
Inventory loss due to mispicks or damage
In this case study, we’ll explore how a mid-sized construction materials distributor used ERP-driven inventory control strategies to transform their high-turnover stock management—resulting in increased accuracy, reduced waste, and improved customer service.
The Company: Regional Building Materials Supplier
Operating across four warehouse locations, this distributor specializes in:
Concrete products
Structural steel
Insulation
Fasteners and hardware
Their warehouses serve contractors and job sites with tight deadlines, often requiring next-day delivery or just-in-time fulfillment.
The Challenge: Fast-Moving Stock, Slow Systems
Before upgrading their ERP, the company struggled with:
Stockouts of essential products like cement bags and rebars
Manual reordering based on rough estimates
Lack of visibility into inventory movement across yards
Overordering to “play it safe,” which tied up cash and space
Frequent mispicks, especially on bulk orders
Their existing system lacked the automation and real-time insights needed to keep up with high-velocity SKUs.
The Solution: ERP-Based Inventory Control for High-Turnover Products
Working with an ERP provider specializing in building materials, the company implemented a multi-pronged strategy:
- SKU Segmentation by Turnover Rate
ERP categorized SKUs into A, B, and C classes based on movement
‘A’ class products (fast movers) were assigned dynamic reorder points and staging priorities
- Automated Replenishment Rules
The ERP system triggered auto-generated POs when high-turnover SKUs fell below a usage-based threshold
Lead times and supplier minimums were factored in to avoid rush fees or delays
- Location-Based Demand Planning
Demand data was analyzed by yard, ensuring that each location stocked products based on local consumption
The system supported inter-yard transfers to rebalance stock and reduce overordering
- Barcode Scanning for Picking Accuracy
All high-turnover SKUs were tagged and tracked via barcode
Picking errors dropped significantly once handheld scanners were deployed and synced to the ERP in real time
The Results: Real Impact in 90 Days
Within three months of implementing ERP-based inventory control, the company saw measurable improvements:
MetricBeforeAfter
Picking Accuracy84%98%
Emergency Orders12/month3/month
Inventory Holding CostsHighReduced by 19%
On-Time Delivery Rate78%92%
Customer complaints dropped. Warehouse staff reported fewer errors. Procurement had better forecasting. Most importantly, job sites received materials on time—every time.
Lessons Learned
Dynamic stock control beats manual guessing—especially for fast-moving items
Visibility across locations prevents both overstock and understock
Automating reordering frees up time for strategic purchasing
Scanning technology ensures execution matches inventory plans
Final Thoughts
High-turnover inventory can be your greatest strength or your biggest liability. With the right ERP strategies, it becomes a well-oiled supply engine that powers service, efficiency, and growth.
📦 Want to replicate this success? Let’s map out a high-turnover inventory control strategy tailored to your warehouse.
