Supply Chain
Supply Chain Updates for Multifamily
June 2026
Updated June 12, 2026
Smarter Purchasing, Stronger Margins: What Inventory Efficiency Means for Your Business
In today's supply environment, the products you stock are just as important as the products you sell. Every dollar tied up in slow-moving or excess inventory is a dollar your business cannot put to work elsewhere. Whether that's payroll, capital improvements, or growth. At Chadwell Supply, we think about this every day, and we want to share some of the tools that can help your operation stay lean, profitable, and ready for what's next.
Inventory Turns: Are Your Dollars Working Hard Enough?
Inventory turnover measures how many times your stock cycles through in a given period. Higher turns mean your purchasing dollars are generating returns faster. Lower turns mean capital is sitting on shelves.
The formula is straightforward:
Example: Consider two properties spending the same amount on maintenance supplies annually. Property A keeps tighter stock and turns inventory 10 times per year. Property B carries more buffer stock and turns it only 4 times.
On identical spend, Property B has $150,000 more cash tied up in inventory at any given time. Capital that could be funding unit turns, capital improvements, or targeted bulk buy opportunities.
Deadstock: The Cost of “Just in Case”
Deadstock is inventory that has become unsellable, products that were discontinued, superseded by a new model, or simply never moved. It continues to cost money (storage, insurance, handling) while its resale value drops toward zero.
The best defense against deadstock is early action. If a product line is slowing down or a supplier is phasing out a SKU, a timely conversation with your rep can help you right-size your position before it becomes a problem.
Surplus Inventory: Where Over-Buying Erodes Profit
Surplus inventory is subtler than deadstock. The product will eventually sell, but the cost of carrying too much of it quietly eats into the margin you worked to earn.
Example: Consider an over-order of $100,000 in merchandise that takes six extra months to clear. By the time you account for holding costs and the promotional discount typically needed to accelerate movement, you’ve absorbed significant margin erosion on that product.
That’s a 25% reduction in gross profit before a single other variable changes.
Accurate forecasting isn't just an operational discipline; it's a direct driver of profitability. The closer your purchasing reflects actual demand, the more of your margin makes it to the bottom line.
How We Can Help
These aren't abstract concepts, they're decisions that come up every time you place an order, review a contract, or evaluate a new product line. Chadwell Supply's team is built to be a resource in that process, not just a fulfillment partner.
Whether it's helping you identify high-turn alternatives to slower SKUs, flagging products approaching obsolescence, or structuring ordering patterns that keep your working capital fluid, we're most useful when we're part of an ongoing conversation.
Reach out to your local Chadwell Supply representative to talk through how smarter inventory strategy can strengthen your property's financial performance. The best results come when we plan together.
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See a breakdown of product categories and specific items affected here.
