Hempy: Current Events Call for Different Inventory Approach

An extra week of inventory may carry a cost, but turning away a loyal guest carries a much larger one.

Quick Takeaways

  • Supply chain disruptions have transformed inventory management from a cost-saving measure into a critical component of guest experience.
  • Operators should develop backup plans with alternative suppliers and substitute products to mitigate the impact of shortages.
  • Maintaining a buffer of inventory can prevent service delays and protect brand reputation during unforeseen supply interruptions.
  • Strong vendor relationships are valuable, but diversification and preparedness are essential for resilience.
  • Proactive planning and inventory strategies are key to ensuring reliability and guest satisfaction in an unpredictable global economy.

Like many operators, I spent a lot of my early years focused on the things I could see every day. Car count. Average ticket. Labor. Training. Sales. Those were the metrics that we controlled to determine success or failure. Inventory was mostly something we managed in the background.

Then the global pandemic and supply chain disruptions of 2021 and 2022 arrived. Many operators remember the filter and parts shortages that swept through the industry. Common filters suddenly became difficult to source, as they were stuck on freighters waiting outside of a port to be unloaded. Shipping times stretched. Inventories got tight. Service centers that had never worried about supply suddenly found themselves searching for products, calling competitors, and trying to explain to guests why a routine service could not be completed.

In 2025, new tariff policies created more supply chain fear and cost increases.

And this year, with the conflict in Iran and Strait of Hormuz closure, oil suppliers began to panic. Price increases on oil, allocations, and Dexos shortages became our reality.

Operators are once again having to think about something we all often take for granted: What happens when the products required to service vehicles are no longer readily available?

As I reflect on the past five years and the global economy that we now exist within, supply chain management is no longer just an inventory issue. It is a guest experience issue.

Our guests do not care why a product is unavailable. They do not care whether a refinery has an outage, whether additive packages are in short supply, or whether a supplier has implemented allocations. They simply know that they need their vehicle serviced. If we cannot provide that service, the reason quickly becomes irrelevant.

This requires operators to think about inventory differently in today' s global economy.

For years, many operators have been taught that carrying less inventory is always better. Less cash tied up on the shelf. Less working capital. Better turns. Those are all important considerations. However, there is a point at which reducing inventory stops being efficient and starts becoming risky.

An extra week of inventory may carry a cost. Turning away a loyal guest carries a much larger one.

The same principle applies to suppliers. Many operators develop strong relationships with a single vendor and assume that relationship will protect them from disruption. Strong partnerships absolutely matter, but every operator should know what their backup plan looks like before they need it. Alternative suppliers, substitute products, and established relationships become much more valuable when a shortage occurs.

If deliveries stopped tomorrow, how many days could you continue operating normally?

The answer often reveals vulnerabilities that are easy to overlook during normal times.

The reality is that disruptions will continue to happen. Whether it is filters, oil, additives, freight, or some challenge we have not yet imagined, supply interruptions are part of operating in today's environment.

The operators who navigate them best are rarely the ones who react the fastest. They are the ones who prepared before the disruption ever arrived.

In our industry, reliability is one of the promises we make to our guests. Delivering on that promise starts long before a vehicle enters the bay. Sometimes it starts with a product sitting quietly on a shelf, waiting for the day when everyone else wishes they had planned ahead.

About the Author

Scott Hempy

Scott Hempy

Scott Hempy leads the team at Oilstop Drive-Thru Oil Change and Happy's Drive-Thru Car Wash. Oilstop and Happy's are rapidly growing their footprint of oil change and express car wash locations across the West Coast, combining convenience with an outstanding emphasis on guest experience. Prior to Oilstop & Happy's, Scott was the founder and CEO at Filld, a SaaS-based software solution for last-mile oil and gas delivery companies. He was recognized as a member of the Forbes 30 Under 30 class of 2016 for starting Filld. 

Sign up for our eNewsletters
Get the latest news and updates