A Roofing Supplier Got 80% of Sales From 4% of Products and Kept Running Out of Them
The shortages left roofing projects delayed while crews waited on basics.
roofingcontractor.com · How QXO is Using AI to Streamline DistributionAbout 80% of sales came from just 4% of products, and those products were often out of stock.
That was the inventory picture described by Brad Jacobs, the chief executive of distributor QXO, after QXO acquired Beacon Roofing Supply. "Four percent of our SKUs account for about 80% of sales. Yet many of those fast-moving SKUs were out of stock," Jacobs said. "That's a huge no-no, which we immediately addressed."
An SKU is simply an individual product code, meaning one specific shingle, roll of underlayment, or box of fasteners. At Beacon, a tiny slice of those codes drove most of the business, yet many of those bestsellers were missing from the shelves.
For roofing contractors across the country, that meant work fell behind because needed supplies were not available, even staples such as shingles, underlayment, and fasteners.
Questions people ask
Why would a company run out of its bestsellers?
Bestsellers sell quickly, so a small delay in reordering can empty shelves fast. If inventory is tracked manually or across separate systems, managers may not notice a shortage until customers complain. Cash and space tied up in slow sellers can add to the problem.
What is underlayment?
Underlayment is a layer installed on a roof deck beneath shingles or another outer covering. It acts as an added barrier against rain and wind-driven water.
What is an SKU?
An SKU, or stock keeping unit, is a code a seller uses to track one specific item. In roofing, different shingle colors, sizes of underlayment rolls, and boxes of fasteners would each have their own SKUs.