Dive Brief:
- WD-40's global supply chain delivered $7 million in cost reductions during its most recent fiscal year through improved inventory management, logistics efficiencies and strategic sourcing efforts, President and CEO Steven Brass said on an Oct. 21 earnings call.
- The supply network also helped the maintenance and household products maker lower inventory levels to 95 days on hand, moving closer to the company’s 90-day target, according to Brass. In FY2025, the company's inventory rate was 99 days, according to an annual report.
- The improvements came even as higher oil prices, linked to economic uncertainty sparked by the Iran war, raised WD-40's input costs for specialty chemicals by up to 100% earlier in the fiscal year. “We achieved these results despite growing global volatility,” Brass said.
Dive Insight:
WD-40 operates its supply chain under a strategic framework that has been key to expanding gross margins through cost-reduction initiatives. Part of that strategy includes reevaluating distribution center locations to reduce delivery miles for WD-40 products. The company then outsources the operation of the centers to 3PLs.
During FY2026 ended Aug. 31, WD-40 added a manufacturing partner in Europe, combining with strategic inventory investments to reduce risk, support service levels and provide flexibility to manage cost volatility, Brass said on the latest call.
WD-40 contended with higher fuel costs and disrupted raw material sourcing for some third-party manufacturers due to the Iran war during the fiscal year as well, forcing it to find alternative shipping routes in certain regions.
Costs for oil inputs and freight are expected to remain elevated into the current fiscal year, Keith Stauffer, VP of global finance, said.
WD-40 is also using technology to improve productivity, Brass said. In FY2026, the company expanded its ERP platform into two additional direct markets and accelerated adoption of artificial intelligence-enabled systems.
In April, Brass told investors the company is deploying AI-enhanced platforms such as Microsoft Dynamics 365, Salesforce and Atlas.
