How LBM Dealers are Handling the Rising Number of SKUs

We previously reported on how LBM dealers felt about SKU proliferation. While lumber and building materials (LBM) dealers generally agree that the rise in stock-keeping units (SKUs) has had little impact on their business, the actions taken to manage this increase are anything but unanimous. Principia’s ongoing, monthly survey of LBM dealers examines two methods dealers are employing to handle the continuous increase in the number of SKUs.

Over half (58%) of LBM dealers say they address the complexity of rising SKUs by relying less on selling in-stock inventory. Instead, these dealers are shifting the responsibility to their two-step distributor and manufacturer partners. Alternatively, 42% of LBM dealers are choosing to expand their in-stock inventory to handle the growing number of SKUs.