ERP implementation is a big investment for any distributor—but for those in the building materials space, where margins are tight and operations are complex, getting it wrong can cost more than just money. From missed deadlines to lost trust, the hidden costs of ERP missteps can quietly derail your business before you even realize what’s happening.
Here’s a look at the most common pitfalls—and the real costs behind them—that distributors need to watch out for.
- Underestimating Internal Resources Needed
Too often, businesses believe their vendor or implementation partner will “handle everything.” But a successful ERP rollout needs serious internal involvement—from warehouse teams to finance to sales. When companies don’t allocate enough time or staff to support the project, they pay the price in:
Delayed timelines
Poor adoption
Missed requirements that create rework later
Hidden Cost: Burnout, added labor costs, and slower ROI due to weak alignment between the system and how people actually work.
- Choosing the Wrong ERP Fit
Not all ERPs are designed with distributors in mind—especially those handling bulky goods, multi-unit pricing, or job-site deliveries. Choosing a system built for manufacturers or retailers can force your team to bend processes to fit the software, leading to:
Workarounds
Manual tracking outside the system
Constant frustration from front-line users
Hidden Cost: Operational inefficiencies that never go away, leading to long-term productivity loss and increased error rates.
- Over-Customization Too Early
It’s tempting to tailor the ERP to match every existing process in your business. But heavy customization—especially early on—can lead to:
Longer implementation timelines
Higher costs for development and maintenance
Fragile systems that break with every update
Hidden Cost: You become “locked in” to custom code that limits agility, increases future upgrade costs, and may require specialized support forever.
- Skimping on Training and Change Management
ERP systems change how people work. Without proper onboarding, employees may resist the system or use it incorrectly. Distributors who underestimate the need for hands-on training and communication risk:
Low user adoption
Mistakes in order entry, inventory tracking, or billing
Shadow systems and duplicated work
Hidden Cost: Loss of trust in the system, costly errors, and wasted potential from features that never get used.
- Poor Data Preparation and Cleanup
Your new ERP is only as good as the data you feed it. If you migrate outdated, inconsistent, or incomplete data, the system won’t deliver the clarity you expect. Common mistakes include:
Duplicated SKUs
Mismatched units of measure
Incomplete customer or vendor records
Hidden Cost: Ongoing confusion, reporting inaccuracies, and time spent fixing mistakes that could have been avoided with a clean start.
- Ignoring Mobile or Field Use Cases
For distributors with active yards, delivery fleets, or remote job-site support, forgetting to plan for mobile access can limit ERP success. If drivers, yard staff, or sales reps can’t access the system when and where they need it, they’ll revert to workarounds.
Hidden Cost: Delays, miscommunication, and lost productivity in the most critical last-mile parts of your operation.
Final Thoughts
ERP implementation isn’t just about going live—it’s about making your business run smoother, faster, and more profitably. To get there, you need to avoid the hidden costs that come from rushing the process, choosing the wrong system, or underestimating the effort involved.
Plan carefully. Involve your teams. And choose an ERP partner who understands the realities of distribution in the building materials industry. That’s how you turn ERP into a real growth driver—not just another expensive IT project.
