I agree with Joe but would add that inventory planning and management are an
art. Computer automation has made a significant difference in recent years, but
generally human decisions ultimately affect the on-hand quantities. Too big of
a quess about future demand loads shelves and ties up that scares item called
cash. Too low a guess and waits for re-supply occur. "Just in time" only
works if all participants in the entire supply line have capacity for surges in
production or working capital to buffer demand by holding quantities of
inventory. Generally what happens is inventories get out of balance and either
vendors or manufacturers can not afford (or are too conservative) to buy more
stock to hold until they sell something.
Overstock can be very hard and costly to get rid of. Sort of sounds like all of
our projects. The up side, we get better sale offers as people attempt to
adjust their inventories and free up cash to buy other things.
Computer automation continues to help in this area but has to be able to use
some data to predict demand. We just might be in the golden age of parts
availability for some models. As demand falls predicition and cost of holding
parts could change current realities. Keeping as many cars on the road as
possible is essential to any of us having even the Big 3. Too much bashing
could make it the big 2 or 1. Poor inventory management by retailers or
manufacturers could have the same result.
Jack McCarrick
Joe Curry wrote:
> Bob,
> My guess is that it has more to do with when the order is placed. I
> find that in most circumstances, places who have good parts supplies
> typically order long in advance in order to make sure that they don't
> run out. Manufacturers typically give preference to those companies
> that provide good requirement forecasts and advance or standing orders.
> This helps the manufacturers better plan for the requirements without
> having to carry large inventories in speculation of orders.
>
> Then if another company places an order that has not been properly
> planned for, they might experience a much longer delay in getting their
> allotment of parts.
>
> That is the way it works in the computer business and I'd bet in the
> auto parts business as well.
>
> Regards,
> Joe
>
> Bob Norway wrote:
>
> > I guess the question that arises, is that since most all the parts for our
> > Spits are sourced from the same place, why can one parts house get them
> > quicker than another? Or does one manage their inventory better than
> > another, or have a 'secret' source that the others do not? Just
> > wondering......
>
> --
> "If you can't excel with talent, triumph with effort."
> -- Dave Weinbaum in National Enquirer
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