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How Inventory Strategy Directly Impacts OEM Downtime

Jordan Wilson, President & Owner of CasterHQ
Jordan Wilson
President & Owner, CasterHQ
15+ years in industrial casters & wheels (OEM, facilities, MRO)
Why inventory strategy is a primary driver of uptime for OEM and industrial operations.

Overview

Downtime is rarely caused by a single failure. It usually starts with inventory decisions made months earlier.

Casters are often treated as low-priority components. When they are unavailable, production stops anyway.

Why Downtime Starts With Inventory

  • Unplanned failures require immediate replacement
  • Long lead times extend equipment outages
  • Emergency purchases increase cost and risk

A caster with a six-week lead time can stop a production line as effectively as a failed motor.

The Risk of Drop Ship Inventory Models

Many suppliers rely on drop shipping from manufacturers. This limits visibility and control.

  • No guaranteed stock availability
  • Inconsistent lead times
  • No reserved inventory for OEM programs

Inventory Models Compared

Inventory Model Availability Lead Time Risk OEM Suitability
Drop ship only Uncertain High Low
Stocking distributor Moderate Medium Medium
Reserved OEM inventory Guaranteed Low High

A Better Inventory Approach

  1. Forecast usage by application
  2. Reserve inventory by part number
  3. Lock pricing through volume programs
  4. Release product as needed

Inventory strategy is discussed in greater detail in the 2026 Industrial Forecast.

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