Cycle counting is one of the most effective ways to maintain inventory accuracy — but in high-volume distribution, especially in the building materials space, manual counting is often inconsistent, time-consuming, and costly.
In this case study, we explore how one growing distributor used ERP software and mobile technology to automate its cycle counting process — and saw big improvements in efficiency, accuracy, and operational control.
The Company: Regional Building Materials Supplier
This distributor manages over 45,000 SKUs across four warehouses and two outdoor yards. They supply general contractors with:
Structural steel
Concrete reinforcements
Fasteners, adhesives, sealants
Sheetrock, pipe, and plumbing components
With orders shipping out daily — often directly to active construction sites — inventory accuracy was critical. But their traditional approach to stock counts wasn’t keeping up.
The Challenge: Manual Counts and Mounting Errors
The company’s old cycle counting process was entirely manual:
Staff used spreadsheets to track count zones
Counts were conducted inconsistently across locations
Physical counts had to be paused during peak times
Inventory mismatches were discovered only after fulfillment errors
This led to:
Frequent backorders due to inaccurate stock
Order fulfillment delays
Labor costs increasing for re-counts and adjustments
Management realized they needed a more scalable and automated system to keep operations running smoothly.
The Solution: Automating Cycle Counts with ERP + Mobile Tech
The company implemented a building materials-focused ERP system with a fully integrated mobile inventory module. The rollout included:
Barcode-scannable product IDs across all SKUs
Cycle count scheduling logic based on product movement and category
Mobile devices for warehouse staff with live syncing to the ERP
Custom variance reports and approval workflows for every adjustment
Cycle counts could now be done during regular operations, with real-time data updates flowing back into the system instantly.
The Results: Accuracy and Efficiency Up, Errors Down
In just 90 days post-implementation, the company reported:
68% reduction in inventory-related order errors
30% improvement in average count speed per staff member
15% reduction in labor hours spent on rework
Significant drop in shrinkage as discrepancies were caught earlier
Just as importantly, they were able to run counts without disrupting outbound order fulfillment — a key advantage during their busiest season.
Key Takeaways for Other Distributors
Automation doesn’t have to be complex — starting with mobile-based cycle counting alone can create major impact.
Consistent count scheduling ensures even slow-moving or outdoor SKUs aren’t forgotten.
Live variance reporting allows warehouse managers to resolve issues on the spot — not weeks later.
ERP integration is critical — disconnected systems only add friction.
Looking Ahead
With the cycle count process now automated, the distributor plans to expand automation into:
Putaway tracking
Audit-ready documentation for compliance
Advanced slotting recommendations based on historical movement data
Cycle counting was just the start — now they’re building a more intelligent, resilient inventory ecosystem.
