MarginWorkshopTruck Stock Inventory Carrying Cost
What it really costs every year to carry parts inventory on your trucks, and whether that cost is worth it against the supply-house runs it saves.
Carrying cost at other stocking levels
| Stock level | Annual carrying cost (fleet) |
|---|---|
| Lean ($1,500) | $750 |
| Standard ($3,500) | $1,750 |
| Well-stocked ($5,000) | $2,500 |
| Heavy ($7,500) | $3,750 |
| Max ($10,000) | $5,000 |
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Methodology
Formula: total carrying cost rate = capital cost rate + insurance/ handling rate + obsolescence/shrinkage rate. Annual carrying cost = truck stock value × that rate × number of trucks. If you enter a supply-run cost and how many runs you avoid per month, we also compare that carrying cost against the value of those avoided trips.
Assumption: carrying-cost benchmarks for parts and materials inventory commonly land 20%-30% of average inventory value per year; a well-stocked residential plumbing truck typically runs $2,500-$5,000 in parts. Enter your own numbers rather than relying on these ranges if you know them.
Limitation: doesn't model the cost of a missed job when a truck isn't stocked for a specific call, only the ongoing carrying cost and the value of avoided routine supply runs.
Guide: The Equipment and Truck Stock Guide, a worked example showing a stocking level that is worth it, but only barely.