ERP Setup Walkthrough for New Yards

Opening a new yard? Get your ERP in place before the first load lands.

Launching a new location in building-materials distribution is an exciting growth step—but it’s also a logistical minefield. Between hiring staff, stocking SKUs, and coordinating inbound freight, it’s easy to push ERP implementation to the back burner. But here’s the truth: if your ERP isn’t set up before the yard opens, you’ll be behind from day one.

A new yard should never start operations with spreadsheets and printed pick slips. Instead, take a phased, focused approach to ERP setup that ensures materials flow, orders sync, and cash flows right out of the gate.

1. Start with SKU-level data modeling

Short-tail: “ERP SKU setup building materials,” “inventory setup for new yard.”

Every new yard needs a product list tailored to regional demand. If the branch services suburban tract builders, you’ll focus on OSB, SPF 2x4s, roof trusses, and batt insulation. If it’s servicing commercial contractors, you might need heavier stock like rebar, cementitious backer board, and light-gauge steel framing.

Before receiving inventory, build out your ERP’s SKU database. Include units of measure (e.g., board feet, LF, pallets), pack sizes, product descriptions, and reorder thresholds. Use consistent naming conventions and match them to vendor part numbers to avoid confusion on inbound POs.

2. Align ERP inventory structure with physical yard layout

Long-tail: “ERP bin mapping building supply,” “yard inventory zone configuration.”

New yards should be mapped into inventory zones within the ERP: treated lumber racks, interior drywall barn, siding bins, fastener shelves, etc. Each zone should match real-world layout to streamline putaway and picking. If your team uses barcode scanning, assign location IDs and bin tags before the first truck arrives.

This structure also allows your ERP to track dead stock, aged SKUs, and zone-specific stockouts over time.

3. Configure customer classes and pricing groups

Short-tail: “customer class setup ERP,” “tiered pricing by contractor type.”

Before the first invoice goes out, configure your customer classes: GC residential, custom home builders, commercial subs, municipalities. Each class should be tied to default payment terms, credit limits, and pricing tiers. For instance, your ERP might apply a base discount of 12% off list for GCs, but 20% for volume-based custom homebuilders.

These rules ensure consistent margins and reduce pricing errors as your sales reps onboard accounts.

4. Set up procurement workflows for yard-specific stock

Long-tail: “purchase order routing new branch,” “local stock procurement ERP setup.”

Each yard should have its own procurement logic, including default vendors, minimum order quantities, and lead times. The ERP should allow branch-specific reorder points for fast-moving SKUs (e.g., cement board or felt paper) and support transfer requests for SKUs stored centrally.

You’ll also want to configure approval workflows. For example, allow assistant managers to auto-approve POs under $5,000, while anything over requires senior procurement review. This ensures material flow while keeping cost controls in place.

5. Configure sales order and delivery workflows

Short-tail: “ERP sales order process yard,” “delivery ticket setup ERP.”

Map out your order-to-cash flow: quote ? order ? pick ticket ? dispatch ? invoice. Set up the ERP to auto-generate sales orders from quotes and convert them into pick tickets for warehouse staff. Assign truck routing logic and delivery zones based on the yard’s geographic coverage.

Make sure delivery notes—like boom truck requirement, jobsite gate codes, or offload preferences—can be captured during order entry and displayed clearly on dispatch docs.

6. Train staff using live sandbox environments

Long-tail: “ERP training new yard staff,” “building supply ERP onboarding.”

Don’t hand new employees printed training binders—let them practice in a sandbox ERP environment that mirrors the live system. Yard techs should learn how to scan materials into bins. Sales reps should simulate quote creation and order entry. Managers should run margin reports and reorder logs.

Live simulation ensures everyone is ERP-ready before the go-live day, reducing errors and build delays.

7. Integrate accounting and invoice workflows early

Short-tail: “ERP billing integration,” “construction supply invoice setup.”

Set up invoice templates customized for building materials: show PO number, jobsite address, SKU descriptions, freight fees, and tax zones. Tie customer classes to default payment terms (e.g., Net 30) and configure early-pay discounts or late-fee logic if needed.

Make sure AR teams can view delivery confirmation before releasing invoices, avoiding disputes on undelivered stock.

8. Activate reporting dashboards from day one

Long-tail: “ERP yard performance dashboard,” “real-time material KPIs.”

New yards need visibility just as much as established ones. Set up dashboards to track:

Daily order volume

Top 20 SKUs sold

Stockout frequency

Reorder alerts

On-time deliveries

Margin by product group

Use these insights to adjust buying patterns, fine-tune stocking strategies, and guide early performance reviews.

The goal isn’t just software setup—it’s operational readiness

ERP implementation isn’t an IT project—it’s a yard launch project. When done right, your ERP won’t just manage inventory or bill invoices. It will give your new yard the structure, discipline, and insight needed to compete from the first day.

Conclusion

Opening a new yard is your opportunity to do things right the first time—and ERP must be a core part of that launch. When your system is tailored to the yard layout, the contractor base, and the product flow, you empower your team to execute with confidence. Orders go out clean. Inventory stays lean. Invoices get paid faster. And that new location becomes a profit center—not a paperwork black hole.

Don’t launch with spreadsheets. Launch with clarity.