GMROI benchmark
GMROI Benchmark for Industrial Distribution (2026)
Last updated September 2026
The short answer
In industrial distribution, gmroi typically runs 1.8–3.0 — below the cross-industry band of 2.0–3.5. Top quartile above 3.
Formula
GMROI = Gross Margin $ ÷ Average Inventory Cost Industrial distribution against the cross-industry band
| Industry | Typical GMROI | What good looks like |
|---|---|---|
| All industrial distribution | 2.0–3.5 | Above 3 is strong for distribution |
| Industrial Distribution | 1.8–3.0 | Top quartile above 3 |
Higher is better on this metric. Every other industry benchmarked for GMROI is in the full benchmark table.
What gmroi measures
GMROI (gross margin return on inventory investment) is the gross profit earned per dollar invested in inventory. Above 1 means inventory earns more than it costs to hold.
Sources: Epicor / MDM
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