The verdict in three sentences
A London wholesaler with 3 depots and 6,000 SKUs that finds 4 to 7% variances at its annual count loses money three ways: shrinkage, stock-outs and dead stock. Custom multi-depot inventory software costs GBP 40,000 to 100,000 and goes live in 3 to 5 months, while an off-the-shelf ERP quickly passes GBP 80,000 once integration is paid. With GBP 5 million of stock, bringing variances below 1.5% frees more than GBP 200,000 in year one.
Off-the-shelf ERP, POS software or custom
Building materials wholesale has its own constraints: multiple units (bag, pallet, tonne, linear metre), cutting, site deliveries, trade counter sales and trade credit. The table compares common 2026 options in London.
| Option | Upfront cost (GBP excl. VAT) | Annual cost | Timeline | Fit for materials wholesale |
|---|---|---|---|---|
| Spreadsheets and invoicing tool | 0 to 3,000 | 1,000 to 2,500 | Immediate | No, no per-depot tracking |
| Standard inventory SaaS | 6,000 to 16,000 | 3,000 to 8,000 | 1 to 2 months | Partial, limited units and transfers |
| Off-the-shelf ERP with integrator | 80,000 to 240,000 | 16,000 to 40,000 | 6 to 12 months | Yes, but heavy and expensive |
| Custom multi-depot software | 40,000 to 100,000 | 6,000 to 14,000 | 3 to 5 months | Yes, built for your flows |
| Barcode scanners (per unit) | 600 to 1,400 | Negligible | 2 weeks | Essential for accuracy |
For 3 depots, plan 8 to 12 scanners, or GBP 4,800 to 16,800 of hardware. The custom software covers receiving with quantity checks, labelling, inter-depot transfers, site order picking, cycle counting, reorder thresholds and a per-depot dashboard.
Tied-up stock, stock-outs and shrinkage: before and after
| Indicator (average stock GBP 5,000,000) | Before | After 12 months (target) | Estimated annual gain |
|---|---|---|---|
| Count variance | 5.5% | 1.5% | GBP 200,000 shrinkage avoided |
| Dead stock (over 180 days) | 18% | 11% | GBP 350,000 cash released |
| Stock-outs on 300 key SKUs | 9% of orders | 3% | GBP 120,000 sales recovered |
| Annual count time | 4 days, depots closed | Cycle counts, no closure | 4 trading days preserved |
| Site picking errors | 3% of orders | 0.8% | Fewer returns and credit notes |
| Manual transfer entry | 15 h per week | 3 h per week | 600 h per year |
These are 2026 orders of magnitude. The most underestimated lever is dead stock: identifying 7 points of dead stock on GBP 5 million is cash coming back without a single extra sale.
Mini case study
Daniel runs a building materials wholesaler in London with depots in Park Royal, Barking and Croydon, 6,200 SKUs and GBP 4.8 million average stock. His last count showed a 6% variance, or GBP 288,000.
He invests GBP 76,000 in custom software plus 10 scanners at GBP 1,000, GBP 86,000 in total, and GBP 800 a month for maintenance. At 12 months the variance falls to 2%, GBP 96,000: GBP 192,000 of shrinkage avoided. After GBP 9,600 of maintenance, the net gain is GBP 182,400 and the project pays back in under 6 months, before counting cash released from dead stock.
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FAQ
How much does multi-depot inventory software cost in London in 2026?
Expect GBP 40,000 to 100,000 depending on depots, SKUs and integrations. A first version covering receiving, transfers and counts starts around GBP 30,000.
Do we need to change our accounting software?
No, the inventory tool can connect to your existing invoicing or accounting system such as Xero or Sage. The interface usually costs GBP 4,000 to 12,000.
Which scanners should we choose?
Rugged Android terminals at GBP 600 to 1,400 each are enough for a depot. Plan 3 to 4 per mid-sized depot.
Does it handle multiple units and cutting?
Yes, that is the point of custom: bag, pallet, tonne and linear metre conversions, offcuts and per-unit pricing. These rules are set with your depot managers in the first 2 weeks.
Where is the data hosted?
In a UK region of a major cloud provider or on your own infrastructure, in line with UK GDPR. Hosting usually costs GBP 300 to 800 a month.
Let's scope your project. Tell us your depots, SKU count and current tools, and we will price inventory software between GBP 40,000 and 100,000 with a 3 to 5 month plan. 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.
