— How Accurate Inventory Drives Smarter Pricing Through Your ERP System
💡 Why Storage Affects Quoting (More Than You Think)
Imagine this: your sales team sends out a quote, only to realize the item isn’t in stock—or the last ones in the yard are damaged. Now you either scramble, substitute, or delay… and your customer starts looking elsewhere.
Accurate quoting relies on two things:
Real-time inventory availability
Consistent, cost-aware pricing tied to storage data
Let’s break down the storage best practices that make quoting and pricing faster, cleaner, and more profitable—especially when driven by an ERP tailored for the building materials industry.
✅ Step 1: Organize Inventory by Product Family, Size, and Specification
📦 Properly stored materials = accurately quoted materials.
Physical Best Practices:
Group similar SKUs together (e.g., all ½” drywall types in one section)
Use pallet racks, bins, and labels to prevent SKU mixing
Tag materials with spec details (grade, finish, treatment type)
ERP Support:
Sync physical organization with digital product categories
Attach specs and pricing tiers to each SKU
Use product codes that are searchable and standardized
➡️ If you can find it fast, you can quote it fast.
📊 Step 2: Link Real-Time Inventory Data to Your Quoting System
📍 No more quoting from old spreadsheets or gut feel.
Best Practices:
Use ERP-driven quoting tools that pull directly from inventory levels
Display “available to promise” quantities per yard or location
Block items from quotes if flagged as damaged, expired, or allocated
Bonus:
Highlight alternate SKUs or substitute products when quantities are low.
➡️ You quote what you can deliver, not what you wish you had.
🧾 Step 3: Store Historical Pricing and Tiered Rates by Customer Type
💰 Your pricing should reflect reality—margin, quantity, and customer history.
Storage Tips:
Store pricing tiers by customer group (e.g., builder, contractor, retailer)
Track volume-based discounts (e.g., 10% off for 500+ sqft of siding)
Keep a log of past quotes and prices by SKU
ERP Advantage:
Auto-suggest pricing based on quantity, customer type, and historical data
Apply markup/margin logic based on updated cost data
Compare real-time cost vs. selling price during quote creation
➡️ Quoting isn’t just fast—it’s profitable.
🔍 Step 4: Track Storage Conditions That Impact Pricing
Some materials lose value based on how long they’ve been sitting or how they’ve been stored (e.g., moisture-sensitive items, seasonal stock).
Best Practices:
Store bagged goods, treated lumber, or perishable items in controlled areas
Use FIFO (first-in, first-out) to rotate stock and avoid spoilage
Clearly mark aged inventory or discountable material
ERP Tip:
Flag materials for markdown based on shelf time or condition status
Highlight overstocked or slow-moving items for promotional pricing
➡️ Storage conditions affect value—your ERP should keep pricing in sync.
🚛 Step 5: Account for Yard-Based Pricing Differences
📍 Got multiple yards or warehouses? Prices may vary—and that’s okay.
Why it matters:
Freight or handling costs may differ by yard
Stock levels vary, which impacts availability and urgency
Local market demand may influence pricing
ERP Must-Have:
Support location-based pricing and quoting
Show real-time stock and pricing by branch
Let users choose quote source based on stock, speed, and margin
➡️ Quote smarter by location. Not all yards are created equal.
🔄 Step 6: Integrate Returns, Damaged Goods, and Special Buys
👷 Not all inventory is new and clean—and your quoting process should reflect that.
Storage Actions:
Separate returned or slightly damaged stock in the warehouse
Label clearly (e.g., “Discounted Pavers – slight chip”)
Keep a small zone for clearance or special purchase deals
ERP Integration:
Offer discounted pricing options during quoting
Auto-apply lower margins for “grade B” materials
Track special buy margins vs. standard inventory
➡️ Don’t let usable stock collect dust—price it to move!
📈 Step 7: Analyze Quoting Accuracy and Pricing Performance
🧠 Your quoting strategy should evolve based on performance data.
Use ERP reporting to track:
Quote-to-sale conversion rates by SKU or product category
Average quote response time
Pricing wins/losses by customer segment
Profit margin per quote vs. actual cost at delivery
➡️ Better quotes today mean smarter inventory buys tomorrow.
