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Playbook · Oil & Gas Distribution

How to free up working capital tied in inventory in Oil & Gas Distribution (2026)

Last updated July 2026

The short answer

To free working capital tied up in inventory, raise inventory turns and cut days sales of inventory (DSI) by removing excess and obsolete stock and right-sizing safety stock — without dropping fill rate. Maintained targets the exact SKUs holding cash hostage and protects service levels while it does.

The context in oil & gas distribution. Energy distributors and operators with long-lead spares, project-driven demand, and high-value surplus sitting idle in yards. Inventory is usually the largest thing on the balance sheet, and finance pressures operations on turns and write-offs every quarter — but cutting stock risks stockouts.

  • Long-lead spares and project demand inflate inventory
  • High-value surplus idle in yards, unvalued
  • Regional imbalance across field locations

The steps

  1. 1

    Raise inventory turns / cut DSI on the SKUs holding the most cash

  2. 2

    Remove excess and obsolete stock that never sells

  3. 3

    Right-size safety stock without dropping fill rate

  4. 4

    Give finance one trustworthy view of inventory value and risk

Why it pays off

20–30% / year
Inventory carrying cost typically runs 20–30% of inventory value per year (often 25–40% for wholesale distributors).
Institute for Supply Management (via NetSuite)
20–30%
AI-driven optimization can cut inventory 20–30% while holding service levels, and reduce forecasting error up to 50%.
Epicor / MDM
~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 oil & gas distribution operations free up working capital tied in inventory?

To free working capital tied up in inventory, raise inventory turns and cut days sales of inventory (DSI) by removing excess and obsolete stock and right-sizing safety stock — without dropping fill rate. Maintained targets the exact SKUs holding cash hostage and protects service levels while it does.

Why is this harder in oil & gas distribution?

Energy distributors and operators with long-lead spares, project-driven demand, and high-value surplus sitting idle in yards. Inventory is usually the largest thing on the balance sheet, and finance pressures operations on turns and write-offs every quarter — but cutting stock risks stockouts.

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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