WD-40 credits supply chain for $7M in cost savings

The company cut costs in FY2026 through several operational improvements, such as reducing inventory levels, President and CEO Steven Brass said.

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.

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