Recording of Inventory items issued to Vendor for construction contracts

Dear Experts,

  Can you please suggest how to tackle this issue.  Inventory is issued to vendor for construction of building in huge quantity. The Vendor maintains manually in excel the quantity received through us and consumption he made. The excess inventory they are holding at month end / quarter will be reported to us and this is recorded in books by debiting the inventory again through General Ledger and reversing the Journal again, starting of the next month.

Is it possible any how, the quantity issued and consumption by the vendor can be maintained. Requirement is to eliminate the manual process and put the same into system.