— The ERP-Powered Guide to Smarter, Safer, and More Profitable Purchasing
🧱 Why Buyers Need a Solid Inventory Game Plan
In the building materials world, purchasing isn’t just about finding the best price—it’s about stocking the right quantity, at the right time, and in the right place.
Buy too much? You’re stuck with deadstock and bloated storage costs.
Buy too little? You risk stockouts, project delays, and frustrated contractors.
Buy without real-time visibility? You’re guessing in the dark.
That’s where this ERP-backed buyer’s checklist comes in. Let’s break it down step by step.
✅ 1. Check Real-Time Inventory Levels Before Placing Orders
📌 Don’t place an order until you check what’s already in stock—and where it’s sitting.
Best Practices:
Review on-hand, reserved, and in-transit quantities in your ERP
Filter by yard or warehouse location
Prioritize redistribution before reordering new stock
ERP Tip:
Use dashboards to view stock aging so you don’t reorder items already collecting dust.
➡️ First rule of buying: don’t double up on what you already have.
✅ 2. Verify Min/Max Stock Thresholds Are Set and Accurate
📌 Reorder points shouldn’t be set once and forgotten.
Best Practices:
Review min/max levels quarterly (or monthly in busy seasons)
Adjust based on product seasonality and historical usage
Use automated alerts when stock dips below minimums
ERP Tip:
Your ERP should support auto-reordering triggers based on sales velocity or lead time.
➡️ Right-sizing stock levels prevents both overstock and backorders.
✅ 3. Cross-Reference Upcoming Project Demand or Sales Forecasts
📌 Purchasing without demand forecasting = playing inventory roulette.
Best Practices:
Collaborate with sales and project teams to understand upcoming material needs
Use ERP demand planning tools to factor in:
Seasonality
Jobsite schedules
Market trends
ERP Tip:
Build purchase plans based on historical data + upcoming pipeline.
➡️ Stay ahead of demand, don’t chase it.
✅ 4. Validate Vendor Lead Times and Performance
📌 Not all suppliers are created equal—especially when timelines are tight.
Best Practices:
Check average delivery times in your ERP
Flag vendors with frequent delays or short shipments
Have backup suppliers set for high-risk or fast-moving products
ERP Tip:
Score vendors inside your system based on delivery accuracy, cost, and communication.
➡️ Your supply chain is only as strong as your weakest vendor.
✅ 5. Consolidate Orders to Optimize Freight and Handling Costs
📌 Smaller orders mean more deliveries—and more handling costs.
Best Practices:
Group POs by vendor or product category
Batch purchase cycles to align with delivery schedules
Review freight charges per SKU and order volume
ERP Tip:
Your system should suggest shipment consolidation opportunities and flag high-cost deliveries.
➡️ Save money without compromising service.
✅ 6. Prioritize Products with High Turnover and Jobsite Demand
📌 Not everything needs to be ordered all the time—focus on what moves.
Best Practices:
Use ERP data to identify top movers by volume and frequency
Check what’s often backordered or urgently needed
Adjust purchase quantities based on actual sales, not just gut feel
➡️ Buy what sells, not what sits.
✅ 7. Review Storage Capacity Before Confirming Large Orders
📌 Buying a full truckload of pavers? Make sure you’ve got the space first.
Best Practices:
Coordinate with warehouse managers to check available space
Tag bulky or high-volume products in ERP for special handling
Avoid seasonal overcrowding
ERP Tip:
Use warehouse capacity reports to align purchasing with storage reality.
➡️ Better flow = better margins.
✅ 8. Document Every Step of the Purchase & Receiving Process
📌 Visibility and accountability from PO to product shelf.
Best Practices:
Generate and manage all POs within your ERP
Match POs with goods received and invoices
Track partial receipts and update inventory in real time
ERP Tip:
Use scanning tools to log received items, capture discrepancies, and auto-update stock counts.
➡️ No more missing materials or mystery inventory gaps.
