Talk to us
Outcomes Reduce excess & obsolete inventoryMonetize surplus assetsSurplus monetization playbookAutomate RFQs & sourcingFree working capital
Platform Agentic AI for operationsAgentic AI for MRO (guide)MRO inventory optimizationMRO digital transformationSolutions by industryGuides by role
Resources Original researchInventory & procurement statisticsBenchmarksCalculatorsGlossaryHow-to playbooks
CompareContact Talk to us

Playbook · Oilfield Services

How to free up working capital tied in inventory in Oilfield Services (2026)

Last updated September 2026

The short answer

Release the cash frozen in stock without hurting service. 4 steps, in order, for a oilfield services operation.

What you are working against in Oilfield services

  • Surplus production equipment scrapped for pennies
  • No fair-market view of idle field assets
  • Emergency buys when a nearby yard already has the part

Before you start: where Oilfield services usually sits

MetricTypical for Oilfield servicesWhat good looks like
Days Sales of Inventory 100–200+ days Project cycles swing DSI; under 100 is excellent
Inventory Turnover Ratio 1.5–3 turns Project demand caps turns; above 3 is strong

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

The steps

  1. 1Raise inventory turns / cut DSI on the SKUs holding the most cash
  2. 2Remove excess and obsolete stock that never sells
  3. 3Right-size safety stock without dropping fill rate
  4. 4Give 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 you tell whether this is working in oilfield services?

Recompute the same way each period. Days Sales of Inventory: DSI = (Average Inventory ÷ Cost of Goods Sold) × 365. Inventory Turnover Ratio: Inventory Turns = Cost of Goods Sold ÷ Average Inventory. Inventory Carrying Cost: Carrying Cost % = (Capital + Storage + Service + Risk costs) ÷ Average Inventory Value. GMROI: GMROI = Gross Margin $ ÷ Average Inventory Cost.

What does Oilfield services start from?

Days Sales of Inventory of 100–200+ days is the published band for oilfield services — project cycles swing DSI; under 100 is excellent. 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.

Talk to us Try a calculator