ERP systems are meant to streamline operations, not complicate them. But for many distributors—especially in the building materials space—implementing ERP software comes with real risks. When implementation goes off track, the impact ripples across the entire business.
In this case study, we look at how two mid-sized material distributors ran into common ERP pitfalls, what it cost them, and how they recovered.
Company A: Fast-Tracking Go-Live… and Paying the Price
Background:
A growing building supplies distributor with four locations and high-volume yard operations.
The Pitfall:
Leadership pushed for an aggressive go-live timeline, skipping full process mapping and internal testing. They assumed their team could “figure it out on the fly.”
The Result:
Inventory was misaligned across all locations within two weeks
Staff resorted to paper logs to track urgent orders
Delivery delays led to multiple customer complaints
Finance couldn’t reconcile incoming POs with deliveries, delaying invoices
Hidden Cost:
They lost over $150K in missed billing, write-offs, and overtime within three months—and more importantly, lost confidence across teams.
The Recovery:
They brought in a third-party consultant to re-map workflows and retrain users. A phased re-launch by department stabilized the system within 90 days.
Company B: Over-Customizing from Day One
Background:
A distributor handling bulk aggregates and packaged goods across multiple regions.
The Pitfall:
The team wanted the ERP to match their exact processes—so they customized heavily from day one. The software was molded to old habits rather than modern best practices.
The Result:
Every update required developer involvement
Support from the ERP vendor was limited due to non-standard configuration
Training new employees became difficult due to the unique interface
Reporting inconsistencies crept in, requiring manual audits
Hidden Cost:
Over 40% of the ERP budget was spent on ongoing custom development, and system updates had to be postponed repeatedly—slowing innovation.
The Recovery:
After two years, they rolled back many customizations and adopted more of the ERP’s standard features. Performance improved, and support issues dropped significantly.
What These Stories Teach Us
These are common missteps—rushing implementation, over-customizing, skipping training—but the consequences are real and costly. The difference between success and failure often comes down to preparation and mindset:
Don’t rush the timeline. Go live when your team is ready—not just when the calendar says so.
Use what’s built-in first. Lean into standard ERP features before rewriting everything.
Train like it matters. Because it does—especially in complex yard, warehouse, or dispatch operations.
Involve real users early. If you’re not listening to the people on the ground, you’re building blind.
Final Thought
ERP systems are powerful, but they’re not magic. The most successful distributors treat implementation like a business transformation, not just a software install. By learning from others’ mistakes—and planning carefully—you can turn your ERP into a tool for growth, not frustration.
