Inventory Carrying Cost benchmark
Inventory Carrying Cost Benchmark for Electrical Distribution (2026)
Last updated September 2026
In electrical distribution, inventory carrying cost typically runs 22–32% / yr — above the cross-industry band of 20–30% / yr. Faster mix eases holding cost.
Carrying Cost % = (Capital + Storage + Service + Risk costs) ÷ Average Inventory Value Electrical against the cross-industry band
| Industry | Typical Inventory Carrying Cost | What good looks like |
|---|---|---|
| All industrial distribution | 20–30% / yr | Under 20% is well-managed |
| Electrical Distribution | 22–32% / yr | Faster mix eases holding cost |
Lower is better on this metric. Every other industry benchmarked for inventory carrying cost is in the full benchmark table.
What inventory carrying cost measures
Inventory carrying cost is the total annual cost of holding stock — capital, storage, insurance, shrinkage, and obsolescence — expressed as a percentage of inventory value. It typically runs 20–30% per year.
Sources: Institute for Supply Management (via NetSuite), Industrial Supply Magazine
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