Most small shops manage their tool crib the same way: someone grabs a drill, uses it until it's dull, throws it back in the drawer, and eventually somebody buys a box of new drills because nobody can find a sharp one. Repeat.
It doesn't have to be that complicated — or that expensive. Here's a simple system that works without a full-time crib attendant.
The foundation of any working tool crib for drill bits is three clearly labeled bins:
Bin 1: Sharp — Ready to Use. New and freshly resharpened bits. Grab from here. If you grab from here and it doesn't cut cleanly, it goes to Bin 2.
Bin 2: Dull — Send for Resharpening. Used bits that failed inspection or that the operator pulled because they stopped performing. These are not trash — they're inventory waiting to be restored. Mark the date on a piece of tape on the bin so you know how long they accumulate before sending.
Bin 3: Retire. Bits that failed the inspection protocol — damaged shank, cracked flute, burned body. These are done. Pull them from rotation and dispose of or repurpose.
This takes 15 minutes to set up and immediately stops the problem of dull bits going back into the sharp bin.
Within the Sharp bin, organize by size. The simplest method:
The goal: a machinist can find the right size in under 30 seconds. If they're digging through a drawer looking for a 7/32", they're going to grab whatever's close. That's how jobs get wrong-sized holes.
Set a fixed schedule or threshold for sending bits in. Two approaches work:
Approach 1: Time-Based (easiest to manage). Collect dull bits for 30 days. Send the whole batch on the first Monday of every month. You always know when the next send is and can plan accordingly.
Approach 2: Volume-Based. Send when Bin 2 reaches a set fill level — typically 20–30 bits for a small shop. Keeps your float consistent without watching the calendar.
Either approach is better than the default (no system = nothing ever gets resharpened until somebody gets frustrated).
What to include with each batch:
The "float" is how many bits you need in circulation to never run short while a batch is out for resharpening.
Simple formula:
Float = (Daily use rate × Resharpening turnaround days) + Safety stock
Example: A shop drilling mild steel runs through about 3 drill bits per day (pulling them to Bin 2). Resharpening turnaround is 10 business days. Safety stock of 5 bits.
Float = (3 bits/day × 10 days) + 5 = 35 bits minimum in the system
If you have fewer than 35 bits total in Bin 1 + bits currently out for resharpening, you need to buy more or decrease your send batch size to maintain continuity. This math usually surprises shops — the float requirement is higher than most people expect, especially in shops that run drills hard in hard materials.
Bits get retired. That's normal. Build a simple reorder rule: when Bin 3 (Retire) accumulates more than X bits of the same size, reorder that size. For most shops, X = 3. If you've retired 3 drills in 7/16" this month, that size is getting heavy rotation and your float is shrinking. Order replacements.
Track this in a basic spreadsheet or even a notepad on the wall near the crib: Size | Date Retired | Quantity. Once a month, look at what sizes are stacking up in retirements and replenish proactively.
One rule that prevents most crib chaos: every container has a label and every label includes the size.
This sounds obvious. Most shops don't do it. The result is bins of "mystery bits" that nobody trusts, so everyone keeps buying new ones while 40 dull bits of unknown sizes sit in a drawer. Label the bins. Label the sizes. If a bit doesn't have a readable size on the shank, check it with a gauge and mark it.
If your crib is currently a mess, here's how to fix it fast:
That's it. 15 minutes. You now have a working crib.
The typical small shop spends 2–3x more on drill bits than necessary because they're buying new instead of resharpening. A working rotation cuts that by 50–70%.
A 3/8" HSS drill runs $6–12 new. A resharpen runs $2–3. If you're doing 4 resharpenings per bit before retirement (realistic with a good system), you get 5 uses for the price of 1.3. That math compounds fast across a full drill inventory. The system doesn't require new software, a new hire, or a significant time investment. It requires three bins, labels, and a monthly send schedule.
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