Excess & Obsolete (E&O) Reserve benchmark
Excess & Obsolete (E&O) Reserve Benchmark for MRO Distribution (2026)
Last updated July 2026
In mro distribution, excess & obsolete (e&o) reserve typically runs 15–25%. Service buffers inflate E&O; active disposition pulls it down. The excess and obsolete (E&O) reserve is the share of inventory value written down because it is unlikely to sell. In industrial and MRO operations, 15–25% of stock is commonly excess or obsolete.
E&O Reserve = Σ (at-risk inventory value × age/consumption risk factor) Excess & Obsolete (E&O) Reserve by industry (2026)
| Industry | Typical E&O reserve | What good looks like |
|---|---|---|
| All industrial distribution | 5–15% of inventory | Disciplined operations hold E&O under 7% |
| MRO Distribution | 15–25% | Service buffers inflate E&O; active disposition pulls it down |
| Oil & Gas Distribution | 15–30% | Project leftovers drive high E&O in yards |
The excess and obsolete (E&O) reserve is the share of inventory value written down because it is unlikely to sell. In industrial and MRO operations, 15–25% of stock is commonly excess or obsolete.
Where does yours land? If mro distribution operations want to move E&O reserve in the right direction, the fastest lever is usually the excess and obsolete tail — the SKUs holding cash without serving demand.
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