Return and reuse programs are often framed as sustainability efforts — and while that’s true, they also represent one of the most underused cost-saving strategies in building materials distribution.
When implemented effectively, reuse programs don’t just reduce landfill waste — they reduce material loss, lower purchasing costs, and tighten operations. And with the right ERP tools in place, you can track every touchpoint from return intake to reuse to resale.
Here’s how to cut costs while scaling your return and reuse program — without sacrificing efficiency or customer experience.
💰 WHERE DISTRIBUTORS LOSE MONEY WITHOUT REUSE STRATEGY
Overstocked or unused materials sent to landfill
Pallet and crate costs stack up without return logistics
Wasted packaging materials on single-use deliveries
Time lost manually managing returns and inspections
In short: no reuse = higher costs, less control.
📦 COST-SAVING TACTICS TO INCLUDE IN YOUR REUSE PROGRAM
✅ 1. Standardize Return-Eligible SKUs
Create a clear list of materials that:
Can be returned unused (within X days)
Can be restocked (e.g., full cases, pallets)
Have resale value even if opened (e.g., certain fasteners or accessories)
📋 Tag these SKUs in your ERP and link to a return policy at point of sale.
✅ 2. Automate Credit Handling with ERP Rules
Use ERP workflows to:
Auto-calculate credit value based on product condition
Route returns for inspection or restocking
Reduce manual entry with digital return authorizations
💡 Bonus: Use conditional logic to only accept returns that meet value thresholds — keeping low-value items out of the reuse stream.
✅ 3. Repurpose or Resell
Don’t scrap usable materials. Create a system to:
Re-label and re-bin lightly damaged or surplus stock
Offer a “Green Clearance” or “Reclaimed Stock” category
Sell returned items as part of project discount bundles
📦 Use inventory flags to indicate status (e.g., “Open Box”, “Repackaged”) with pricing rules.
✅ 4. Consolidate Return Logistics
Instead of sending separate trucks, add return pick-up as part of scheduled deliveries.
🛻 ERP delivery routing can trigger return checklists or notify drivers about packaging or pallet pickup — saving fuel and reducing cost per mile.
✅ 5. Train Customers — and Your Team
Return and reuse programs only work when everyone’s aligned:
Educate contractors about accepted items and processes
Include visual guides at counters and in pick slips
Train warehouse and sales teams on ERP return workflows
📲 Use your ERP’s CRM or email automation to send return policy reminders post-delivery.
📈 KPIs TO TRACK IN YOUR ERP
Value of restocked returned materials
Number of successful return pickups per route
Total cost recovered via repack and resale
Waste avoided (lbs diverted from landfill)
📊 Share these stats with customers and leadership to show the business case behind reuse.
🏁 FINAL THOUGHTS
Sustainability and cost savings don’t have to be separate goals. A well-run return and reuse program, powered by ERP automation and smart inventory rules, can drive both. And your customers will appreciate the convenience and transparency.
📞 Need help building a reuse-friendly workflow in your ERP? Let’s design one that’s cost-efficient and customer-first.
