Special-order SKUs are an essential part of the building materials business — especially when serving contractors who need specific dimensions, custom finishes, or non-stock items for large projects. But managing these SKUs in a busy, yard-based environment comes with its own set of challenges.
Here are the most common questions distributors ask about handling special-order products — and how to stay on top of them without disrupting your warehouse flow or tying up working capital.
- What qualifies as a special-order SKU?
A special-order SKU is any product that:
Isn’t stocked regularly in your warehouse or yard
Is requested for a specific job or customer
Has extended lead times or unique storage requirements
Often requires upfront payment or approval
Examples include custom-cut steel, architectural stone, rare finishes, or jobsite-specific assemblies.
- How do I avoid mixing up special-order SKUs with regular stock?
The best approach:
Assign unique identifiers or barcodes in your ERP when the special order is placed
Tag physical items with customer name, PO number, and jobsite
Store in designated holding zones or flagged storage bins in your yard
This prevents picking errors and keeps non-stock items out of general inventory.
- How should I track special-order SKUs in the system?
Track them from the moment the order is placed to final delivery using:
A linked sales order and purchase order in your ERP
Real-time status updates (ordered, received, staged, dispatched)
System alerts for delays, incomplete deliveries, or jobsite readiness
This ensures full visibility and reduces the risk of forgotten or misplaced custom materials.
- Should I charge customers upfront for special orders?
Yes, it’s a smart and common practice.
Since special orders are often non-returnable, distributors typically:
Require partial or full prepayment
Define cancellation rules at the time of order
Use ERP workflows to hold or block fulfillment until payment is confirmed
This protects margins and prevents losses on customer-specific inventory.
- What are the biggest risks when managing special-order items in yards?
Key risks include:
Lost or misplaced inventory due to improper labeling
Missed deliveries due to lack of tracking or staging confusion
Damage in outdoor yards for items not built to withstand elements
Storage delays blocking space needed for fast-moving stock
These can be avoided with clear staging SOPs, proper tagging, and real-time ERP tracking.
- Can I automate reminders for special-order pickup or delivery?
Absolutely. Your ERP can:
Trigger email or SMS reminders to customers when special-order items arrive
Alert dispatch teams when items are ready for delivery
Automatically escalate pending pickups to sales reps for follow-up
This helps reduce yard congestion and improves the customer experience.
- How do I manage returns on special-order items?
Most special-order SKUs are non-returnable, but when exceptions happen:
Clearly document return policies in your ERP at the time of sale
Track returned materials separately (don’t mix with regular inventory)
Flag returned special-order items for review or scrap to prevent resale errors
Transparency is key — and your ERP system should capture approval flows and refund status.
Final Thoughts
Special-order SKUs don’t have to be a logistical headache. With clear workflows, physical labeling, and ERP-backed visibility, you can handle these items with the same confidence and efficiency as standard inventory — all while keeping customers happy and projects on track.
