Key Metrics to Track for ERP Implementation for Distributors
— How to Measure Success and Maximize Value from Your ERP Rollout
🏗️ Why Metrics Matter During (and After) ERP Implementation
Whether you’re mid-rollout or months past go-live, measuring the right KPIs ensures your ERP is:
Reducing manual work
Improving inventory accuracy
Accelerating delivery
Strengthening vendor and customer relationships
Creating cleaner, more connected workflows
And for building material distributors, where complexity rules—think multiple units of measure, yard transfers, phased jobsite deliveries—you need ERP metrics tailored to real-world operations.
Let’s dig into the key metrics you should be watching to ensure your ERP implementation is doing its job.
✅ Metric #1: Inventory Accuracy Rate
Why it matters:
You went ERP to reduce inventory errors—so measure how well it’s doing.
How to track it:
(ERP Inventory Count – Physical Count) / Physical Count × 100
Track by product category, yard location, or zone
Benchmark goal:
98% or higher is ideal for most high-turnover construction materials
➡️ Better accuracy = better picks, fewer returns, and more trust.
✅ Metric #2: Order Fulfillment Accuracy
Why it matters:
Incorrect orders = jobsite delays, rework, and contractor frustration.
How to track it:
% of orders picked, packed, and delivered without errors
Track discrepancies (wrong SKU, quantity, UOM)
Bonus with ERP:
Use barcode scanning and pick confirmations to reduce manual entry errors.
➡️ More accuracy = fewer “Where’s my wire?” calls.
✅ Metric #3: Average Order Processing Time
Why it matters:
ERP should streamline workflows—not slow them down.
How to track it:
Time from order creation to final shipment
Segment by customer type or yard
Why it’s useful:
Let’s you see how ERP changes are improving (or bottlenecking) warehouse and sales productivity.
➡️ Time is money—especially in construction timelines.
✅ Metric #4: Receiving Efficiency
Why it matters:
Your ERP should improve how fast and accurately you receive and stock materials.
How to track it:
Average time to receive and bin materials from vendor delivery
% of receipts scanned into correct location
of receiving errors flagged per week
With ERP:
Automated PO matching, barcode scanning, and bin location tracking all help streamline the dock-to-shelf process.
➡️ Fast, clean receiving = faster fulfillment.
✅ Metric #5: Inter-Yard Transfer Accuracy
Why it matters:
For distributors with multiple yards, moving stock between locations can create massive inventory drift.
How to track it:
% of transfers completed with correct SKUs and quantities
Time to complete transfer
Discrepancy rate by origin/destination
ERP Tip:
Log all transfers as trackable orders and scan both send and receive points.
➡️ No more “it was on the truck” drama.
✅ Metric #6: Cycle Count Compliance & Accuracy
Why it matters:
Ongoing inventory integrity is what keeps your ERP data reliable.
How to track it:
% of cycle counts completed on time
Count accuracy (ERP vs. physical)
Adjustments logged by team or shift
ERP Advantage:
Use auto-generated cycle count schedules based on ABC product ranking or location.
➡️ No more surprise gaps in stock when it matters most.
✅ Metric #7: User Adoption & Task Completion
Why it matters:
A fancy ERP doesn’t work if your staff isn’t using it consistently.
How to track it:
% of tasks (picks, receipts, transfers, sales orders) completed through ERP vs. manually
Login activity by department
Errors or overrides by user
With ERP dashboards:
Track training gaps and identify who needs more support or retraining.
➡️ People + process + platform = true ERP success.
✅ Metric #8: Customer Order Cycle Time
Why it matters:
Your ERP should make it faster to go from quote to delivery.
How to track it:
Time from order placement to delivery confirmation
Compare pre- and post-implementation averages
Pro Tip:
Segment by customer type (residential vs. commercial), order size, or region to fine-tune performance.
➡️ Get your customers what they need—faster and smarter.
✅ Metric #9: Return and Credit Rate
Why it matters:
Returns are expensive—and a spike post-ERP often points to process gaps.
How to track it:
% of orders returned by reason (damage, wrong item, overshipment)
Credits issued per SKU or category
Flag recurring errors
ERP Helps By:
Tracking returns against picking workflows, warehouse zone, or vendor delivery quality.
➡️ Fewer returns = more repeat business.
✅ Metric #10: ERP ROI Over Time
Why it matters:
You invested in an ERP to save time, money, and effort. Prove it.
How to track it:
Labor hours saved in order processing, picking, or billing
Inventory holding cost reduction
Faster cash cycle due to cleaner billing/invoicing workflows
Tip:
Review ERP KPIs every 30/60/90 days post-implementation—and annually after that.
➡️ A system that pays you back is a system worth investing in.
