Inventory Carrying Cost benchmark
Inventory Carrying Cost Benchmark for Oil & Gas Distribution (2026)
Last updated September 2026
In oil & gas distribution, inventory carrying cost typically runs 25–40% / yr — above the cross-industry band of 20–30% / yr. High-value idle spares raise the risk component.
Carrying Cost % = (Capital + Storage + Service + Risk costs) ÷ Average Inventory Value Oil & gas 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 |
| Oil & Gas Distribution | 25–40% / yr | High-value idle spares raise the risk component |
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.
The sectors landing closest to Oil & gas on this metric are Industrial Distribution, Utilities & Power and PVF Distribution. A sector further away is not doing better or worse by definition — the band reflects what the work requires, which is why the comparison that matters is against your own history as much as against the industry.
Sources: Institute for Supply Management (via NetSuite), Industrial Supply Magazine
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