Most contracting companies have a reasonably organised store. The problem starts the moment an item leaves the store door: it is handed to the site, and then enters a fog until the end of the project. This article explains a simple method that makes the fate of every item that left the store known — whether you apply it on paper, in Excel, or in a system.
The problem is not in the store, it is on the site
Ask the storekeeper "how many gypsum boards went to the Facade site?" and you will probably get an answer. Ask "how many were installed? how many came back? how many broke?" and the answer becomes a guess. The reason is that the issue is recorded as a single movement, "left", and nothing records what happened afterwards.
The result at the end of the project: a gap between what was issued and what was executed that nobody can explain. That gap is charged to the project as cost, so the project's profitability looks lower than it is — or worse, materials go to another project without being charged to it.
The fix: site custody with four states
Instead of the issue being a single movement, treat the site itself as a "small store" that holds custody. Every item that leaves the main store enters the site's custody, and must then leave it through one of four states:
| State | Meaning | Effect |
|---|---|---|
| Issue | The item left the store for the site | Store stock down, site custody up |
| Consumption | The item was installed or actually used in the work | Site custody down, project cost up |
| Return | The item came back to the store intact | Site custody down, store stock back up |
| Damage | The item broke or expired | Site custody down, recorded as waste with a reason |
This way, at any moment you can ask: how many gypsum boards are in the Facade site's custody right now? And the answer is a number, not a guess.
The item stock formula
For stock to stay matched, every movement must feed one formula. This is the formula we use in ATLAS:
Item stock in store = receipts + adjustments − production components − direct issues − deliveries to sites
"Deliveries to sites" is what becomes custody on each site, settled by consumption, return and damage. If the four states are recorded, the month-end count matches — and if it does not, the difference has a name and a place.
Progress is measured by what was delivered
Another benefit: progress. If the project's target is 500 boards, 320 were delivered and 300 consumed, physical progress is 60% without anyone computing it. That is what gets compared to the progress bill submitted to the client.
A checklist before choosing a materials tracking system
Whether you implement this in Excel or choose a system, check the following:
- Issues to sites are recorded as custody, not merely "left".
- The four states exist (issue, consumption, return, damage), each with a date and who recorded it.
- The supervisor can record from the phone on site — if they have to go back to the office, they will not record.
- Quantities accept fractions (2.5 metres, 0.75 kg) and units are clear.
- Movements have their accounting effect automatically: consumption is project cost, damage is waste — with no accountant re-entry.
- There is a log of who did what and when, and nobody can delete a movement.
- The issue itself needs approval when the quantity is large, so it does not become "anyone takes anything".
If your work is installation and dismantling
Scaffolding and signage companies have an extra case: an item is installed on a site, dismantled, returned to the workshop, and installed on another site. Here the four states are not enough, and you need to add "new install", "dismantle", "re-install" and the "workshop" as a third location. That is a separate article, but the principle is the same: every movement with its type, location and date.
In short
Tracking materials on sites does not need a complex system. It needs one idea: the site holds custody, and custody is settled through four states. Any tool that applies this idea — and lets the supervisor record from the phone — will make a difference from the first month.