Results · Industrial Distribution

Free Trapped Working Capital in Industrial Distribution: What It Looks Like

Last updated July 2026

Illustrative scenario based on typical industrial distribution operations and published industry benchmarks — not a specific customer.

Industrial Distribution operations
The outcome

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 starting point

Multi-branch distributors carrying deep MRO and production-equipment catalogs, where imbalance and dead stock hide across dozens of locations. 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.

What changes

Maintained gives one live view of what's held, what it's worth, and what to do with it. Raise inventory turns / cut DSI on the SKUs holding the most cash Remove excess and obsolete stock that never sells

The outcome

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 economics

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

Want this result in your industrial distribution operation?

Tell us where the cash is trapped — excess stock, idle surplus, slow RFQs — and we'll show you the outcome Maintained can unlock.