This tool estimates the capital you free up and the carrying cost you save by improving MRO inventory turns.
Estimate annual savings from inventory optimization. Plug in your numbers, get a directional business case you can hand to leadership. Covers carrying cost reduction, stockout savings, and excess/obsolete recovery with a payback timeline.
Compare your current inventory value and carrying cost to a target level. The difference in freed capital and annual carrying cost is the return.
The annual cost of holding stock, usually 15 to 25 percent of value, covering space, insurance, taxes, obsolescence, and tied-up capital.
It depends on how much excess and dead stock you carry. The calculator sizes it from your own numbers.