Meta Description:
Discover the essential do’s and don’ts of inventory audits tailored for high-volume distributors in the building materials industry. Improve accuracy, reduce shrinkage, and optimize ERP performance.
Introduction
Inventory audits are a critical function for high-volume building materials distributors. With product turnover happening rapidly across warehouses and yards, errors in inventory data can lead to stockouts, over-ordering, and dissatisfied customers. Whether you’re conducting cycle counts or full audits, here are the top do’s and don’ts to ensure your audit process is both efficient and accurate.
Do’s of Inventory Audits
✅ DO Use Your ERP to Automate Counting
Your ERP should support automated cycle counts, real-time reconciliation, and historical reporting. Leveraging automation minimizes human error and accelerates the audit process.
✅ DO Conduct Regular Cycle Counts
Rather than waiting for an annual inventory, implement cycle counts—especially for high-turnover SKUs like cement, steel rods, or plywood.
✅ DO Classify Materials Based on ABC Analysis
Focus audit frequency based on value and turnover. ‘A’ category items (high value/high turnover) should be counted more frequently than ‘C’ items.
✅ DO Train Warehouse Staff
Ensure staff understand ERP procedures, barcode scanning, and how to handle discrepancies. Training minimizes confusion and errors during the count.
✅ DO Document and Analyze Discrepancies
Use your ERP’s reporting tools to identify root causes like receiving errors, theft, or damage. Over time, this leads to process improvement.
Don’ts of Inventory Audits
❌ DON’T Rely on Manual Spreadsheets
Manually recording inventory data increases risk. Use digital tools that sync with your ERP for real-time updates and better traceability.
❌ DON’T Pause Warehouse Operations Entirely
Audits can be disruptive. Instead, design them to work in tandem with ongoing operations—this is especially vital for fast-moving yards.
❌ DON’T Skip Safety Protocols
Audits often involve forklifts, racks, and climbing. Reinforce PPE use and safety training during counts, especially in multi-tier racking environments.
❌ DON’T Ignore Seasonal Stock Variability
Building materials often follow seasonal demand cycles. Your audit should factor in these fluctuations to provide a realistic inventory picture.
❌ DON’T Neglect Returned/Damaged Goods
Include damaged and returned goods in your audit scope. These materials must be accurately classified and reported within your ERP.
Key Takeaways
Use ERP-integrated tools for real-time auditing.
Cycle counts reduce disruption and improve accuracy.
Training and safety are as important as counting methods.
Always analyze discrepancies and adjust operational workflows.
How Our ERP Can Help
Our ERP system is purpose-built for the building materials industry, enabling:
Barcode scanning
Scheduled cycle counts
Multi-yard visibility
Real-time discrepancy reporting
Integration with vendor inventory systems
Want a demo of how our ERP can streamline your inventory audits? [Schedule a free walkthrough here.]
