The verdict in three sentences
For a building materials distributor with 3 yards and 8,000 SKUs, dead stock often ties up more cash than the software will ever cost. Custom inventory software at EUR 30,000 to 75,000 (USD 33,000 to 82,000), connected to your ERP or invoicing tool, frees roughly 15% of stock through automatic replenishment and inter-yard transfers. The success condition is weekly cycle counting by scan, without which no reorder point calculation is reliable.
Why stockouts and overstock coexist
In a distribution business, each of the three yards often orders on its own. One yard runs out of drywall while another holds three weeks of demand. Reorder points are set by gut feeling, counter sales are not always entered in real time, and the annual count uncovers gaps of 3 to 5% of value.
| Symptom | Usual cause | Estimated 2026 cost for EUR 800,000 of stock |
|---|---|---|
| Stockouts on A items | Fixed thresholds, no seasonal forecast | 2 to 4% of revenue lost, about EUR 90,000 |
| Dead stock over 12 months | Untracked bulk purchases | 15 to 20% of stock, EUR 120,000 to 160,000 |
| Inventory gaps | Unscanned counter sales | 3 to 5%, EUR 24,000 to 40,000 |
| Improvised inter-yard transfers | No consolidated view | 1 truck a week, EUR 15,000 a year |
| Annual stock count | Closed for a day and a half | EUR 8,000 to 12,000 of labour |
Scope and price of custom software
The software plugs into the existing invoicing tool (often a distribution ERP) through an integration and handles everything related to physical goods movement.
| Module | Content | Indicative 2026 cost (EUR excl. tax) |
|---|---|---|
| Item master and locations | 8,000 SKUs, 3 yards, aisles, sales units | 4,000 to 8,000 |
| Cycle counting by scan | Scanners or smartphones, zone counts, variances | 6,000 to 12,000 |
| Automatic replenishment | Calculated reorder points, seasonality, purchase suggestions | 8,000 to 18,000 |
| Inter-yard transfers | Request, picking, receipt, stock in transit | 4,000 to 10,000 |
| ERP and invoicing integration | Sales and purchase sync | 5,000 to 15,000 |
| Dashboard | Dead stock, turnover, service level per yard | 3,000 to 12,000 |
At EUR 30,000 the distributor gets the item master, cycle counting and a simple integration. At EUR 75,000 it has predictive replenishment, automated transfers and fine steering per yard. For comparison, a vendor WMS module often costs EUR 150 to 300 per seat per month, plus EUR 20,000 to 40,000 of integration. Miami agency rates typically run 30 to 50% above these European benchmarks.
Schedule and method
The project runs 4 to 6 months: three weeks of on-site audit, a first release (item master and scan counting) live by week ten on a pilot yard, then replenishment and transfers, and finally rollout to the other two yards. Cleaning the item master (duplicates, inconsistent units) is often the longest task: allow 2 to 3 weeks on the client side.
Mini case study
Nadia, managing director of a building materials distributor, runs EUR 800,000 of stock across 3 yards. Analysis shows 15% of SKUs with no movement for 12 months. By clearing this dead stock and aligning orders on calculated reorder points, she frees EUR 120,000 of cash. At a 5% financing cost that is EUR 6,000 a year, but above all EUR 120,000 reinvested in fast movers. Stockouts avoided on A items recover about EUR 30,000 of margin a year. For EUR 55,000 software and EUR 7,000 of annual maintenance, the cash released covers the project in year one.
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FAQ
What does custom inventory software for a distributor cost in 2026?
Count EUR 30,000 to 75,000 depending on yards, ERP integration and automation level. Annual maintenance runs 12 to 15% of the project.
Do we need to replace our ERP?
No, in 80% of cases the inventory software connects to the existing ERP. The integration costs EUR 5,000 to 15,000 depending on its API quality.
How soon do results show?
Cycle counting gives reliable variances after 6 to 8 weeks of use. Dead stock starts falling after 3 to 4 months.
What scanning hardware is needed?
Rugged Android smartphones at EUR 300 to 600 each are enough, or dedicated terminals at EUR 900 to 1,500. For 3 yards, plan 6 to 10 devices.
Does it handle counter sales?
Yes, each counter sale is scanned and deducted in real time, cutting inventory gaps from 3 to 5% to under 1%.
Let's scope your project. Give us your number of yards, SKUs and current ERP, and we will price software between EUR 30,000 and 75,000 with a 4 to 6 month schedule. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
