Playbook · Industrial Distribution
How to run autonomous inventory and procurement operations in Industrial Distribution (2026)
Last updated September 2026
Let the system decide the routine; your team owns the exceptions. 4 steps, in order, for a industrial distribution operation.
What you are working against in Industrial distribution
- Overstocked in one branch, out of stock in another
- Dead stock accumulating across the network with no owner
- Turns and write-offs scrutinized every quarter
Before you start: where Industrial distribution usually sits
| Metric | Typical for Industrial distribution | What good looks like |
|---|---|---|
| Inventory Turnover Ratio | 3–5 turns | Top quartile above 5 |
| Fill Rate | 93–98% | Counter and project fill both matter |
| Days Sales of Inventory | 60–120 days | Top quartile turns inventory in under 75 days |
| Inventory Carrying Cost | 25–40% / yr | Wholesale holding often exceeds 25% |
Published ranges, not targets. Take your own baseline before step one.
The steps
- 1Automate routine replenishment, sourcing, and disposition decisions
- 2Escalate only exceptions and value calls to a person
- 3Codify tribal knowledge into always-on decisioning
- 4Scale operations without adding headcount
Why it pays off
Frequently asked questions
How do you tell whether this is working in industrial distribution?
Recompute the same way each period. Inventory Turnover Ratio: Inventory Turns = Cost of Goods Sold ÷ Average Inventory. Quote Turnaround Time: Quote Turnaround = Time(quote sent) − Time(RFQ received). Fill Rate: Fill Rate = Units Shipped from Stock ÷ Units Ordered.
What does Industrial distribution start from?
Inventory Turnover Ratio of 3–5 turns is the published band for industrial distribution — top quartile above 5. The 4 steps above are the same in any sector; the band you start from is not.
See what your inventory is really costing you.
Tell us where the cash is trapped — excess stock, idle surplus, slow RFQs — and we'll show you the outcome Maintained can unlock.