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Playbook · MRO Distribution

How to monetize surplus and idle assets in MRO Distribution (2026)

Last updated September 2026

The short answer

Turn a pile of unknown value into priced, sellable cash. 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
Inventory Carrying Cost 25–35% / yr Obsolescence risk pushes MRO higher
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
Excess & Obsolete (E&O) Reserve 15–25% Service buffers inflate E&O; active disposition pulls it down

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

The steps

  1. 1Establish a defensible fair market value for every surplus line item
  2. 2Separate what to redeploy internally from what to sell
  3. 3Generate FMV-grounded resale quotes buyers trust
  4. 4Document condition and provenance to lift recovery value

Why it pays off

5–15%
Scrapping surplus recovers only 5–15% of original cost, while complete documentation and condition can add 40–50% to secondary-market price.
Amplio
+40–50%
Complete documentation and verified condition can add 40–50% to the secondary-market price of surplus equipment.
Amplio
~25% / year
Excess and obsolete inventory costs the typical distributor about 25% of its value every year in storage, shrinkage, and cost of capital.
Industrial Supply Magazine

Frequently asked questions

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

Recompute the same way each period. Inventory Carrying Cost: Carrying Cost % = (Capital + Storage + Service + Risk costs) ÷ Average Inventory Value. Inventory Turnover Ratio: Inventory Turns = Cost of Goods Sold ÷ Average Inventory.

What does MRO start from?

Inventory Carrying Cost of 25–35% / yr is the published band for mro distribution — obsolescence risk pushes MRO higher. 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.

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