Playbook · MRO Distribution

How to improve inventory accuracy and balance across branches in MRO Distribution (2026)

Last updated September 2026

The short answer

Right part, right branch, right time — one view across every DC. 4 steps, in order, for a mro distribution operation.

What you are working against in MRO

  • 15–25% of MRO stock excess or obsolete
  • Most POs are low-value, off-contract tail spend
  • Criticality and consumption buried in spreadsheets

Before you start: where MRO usually sits

MetricTypical for MROWhat good looks like
Fill Rate 90–97% Critical-spare fill rates run higher by design
Inventory Turnover Ratio 2–4 turns Criticality buffers lower turns; target the dead tail
Days Sales of Inventory 90–180+ days Service buffers inflate DSI; watch the slow-mover tail

Published ranges, not targets. Take your own baseline before step one.

The steps

  1. 1One live view of stock and value across every branch and DC
  2. 2Reconcile book-to-physical to kill phantom stockouts
  3. 3Rebalance to the branch that needs it before buying
  4. 4Protect the counter sale and the fill rate

Why it pays off

20–30%
AI-driven optimization can cut inventory 20–30% while holding service levels, and reduce forecasting error up to 50%.
Epicor / MDM
$1.77T
Inventory distortion — stockouts plus overstock — cost an estimated $1.77 trillion in 2023, about 7.2% of retail sales.
Planster / IHL
83%
83% of distribution executives have implemented AI in at least one function, up from 35% in 2023.
Epicor

Frequently asked questions

How do you tell whether this is working in mro distribution?

Recompute the same way each period. Fill Rate: Fill Rate = Units Shipped from Stock ÷ Units Ordered. Inventory Turnover Ratio: Inventory Turns = Cost of Goods Sold ÷ Average Inventory. Days Sales of Inventory: DSI = (Average Inventory ÷ Cost of Goods Sold) × 365.

What does MRO start from?

Fill Rate of 90–97% is the published band for mro distribution — critical-spare fill rates run higher by design. 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.