Just-about in time stocking of parts.

[CliffordK]

The big thing with many businesses is that inventory is expensive (although I imagine shipping and pulling small orders is also expensive). So the new idea is "just in time". Estimate sales, and get replacement items in just as the item leaves the store.

Anyway, for many items the stores will stock ONE of each item. Then when it sells, they suddenly find they have zero.

It drives me crazy when I go to a store and they have an empty spot where the item I'm looking for should be.

Or, I got to a small local hardware store in Napa Idaho. I knew that I would need several grinding wheels for a project that I was working on, and I normally like to buy a couple anyway so I don't have to repeatedly head back to the store. The had ONE grinding wheel of each size.

Last year I needed a pair of drive belts for my lawn tractor. I got into the auto parts store, and each store had one belt, so they directed me to the another store in town to pick up the second belt that I needed.

I'm looking at my new mower that takes a matched set of 4 belts, and thinking I don't want to go to 4 stores to pick them up if they should ever break and I find myself in a pinch in the middle of the field.

I suppose I should hang out more in big tractor supply stores, but then the markups can be pretty outrageous and most of them are in the wrong side of town.

I just think stores need to think more about types of inventory. So they should adjust their stock for items that may not sell quickly, but customers are likely to purchase several at a time. It would be like stocking one of each size of nail, and thinking they would keep the customers happy.

Rant Over.... :yuck:

 

[RandyT]

I can definitely relate to what you are saying about inventory stocking. As a small engine repair center, I try to stock the parts that are fast moving for me. Sometimes I don't have a part a customer is looking for, and they claim that I should stock that part. The problem is when i look at the sales record for that part, I may find that i either never sold that part before, or 3-5 years ago. Dealers, or stores should stock there fast moving parts in multiple quantities. The recommendation from the manufacturers is that you should be able to turn over your inventory every three months. I have manufacturers that require certain parts be in stock at all times. The problem is I have had some of there required stocking parts for over 20 years, and never did sell them. Sometimes the stores or dealers don't have a choice on what they stock.

 

[CliffordK]

Yes,
I know that an auto parts store can not stock every part for 1,000 different cars, and usually they can get the special order parts in pretty quickly.
Although, there are a few things like sealed license plate lights that can be a pain to find.

Or, if it is a chain store, they often will keep one starter motor somewhere in town. But, that seems different from stocking half a pair of belts.

Again, the belts will sit on the shelf until someone needs to buy two of them. especially odd sizes that obviously don't go in a car.

 

[3930dave]

As my neighbour (used to drive long-haul) puts it "Major corporations can't afford the warehouse space ( ) , so they replaced all that warehouse space with 48'+ trailers".

There used to be a electronics parts distributor in Toronto that had extensive stock, and a walk in counter. Every Tech and Engineer in the city had made at least one drive there - equipment down, or a prototype overdue, ya really don't care what price is, on-the-shelf is the only thing that matters.

Aging stock is expensive, takes deep pockets, and a long term view - not a combination you often find today.

The internet can be a great solution for specialty hard to find stuff - the free delivery that is common in the USA is icing on the cake. On the shelf is great, but other than common high volume items, many places refuse to stock items that don't move fast.

Business wise, I understand the reality. As a consumer, yeah, it can be a pain.

Rgds, D.

 

[Mikeeemo]

I came out of that industry. When I started 30 years ago, 'we had it'. If you walked in or called, we had what you needed, in stock. A lot of these stores have been brought up by chains that are publicly traded. Stock holders & inventory, in my opinion, do not go together. Everyone wants 4 turns on their inventory dollar and big profits on their shares of stock.

The affects the quality of the sales staff. A true 'gear head' sales person will not work in an operation that has no inventory. As a results these people find other careers.

I left about a dozen years ago and became a computer programmer. I make more money and work less hours than when I left. I had more fun taking care of my customers. Solving a mans problem would make that guy a customer for life.

It seems that a lot of people do not take the time to learn anything. They give half an effort. They expect a full pay check. You have to add value to your employers business, i.e. help generate profit.

Sorry for the rant.

Mike.

 

[CliffordK]

The internet can be a great solution for specialty hard to find stuff - the free delivery that is common in the USA is icing on the cake. On the shelf is great, but other than common high volume items, many places refuse to stock items that don't move fast.

Of course you have to plan ahead for internet orders, and nothing is truly "free". Somebody pays the shipping.

Convenience of ordering in the living room is nice. But, I hate to see small stores go out of business too. Unfortunately, it is hard, though, to pay twice the price, or more locally as something is available on the internet (including shipping).

For some things, I'll go to one or two "best bet" local stores to try to find an item, but not spend a day hunting around town for something that I can get with a half dozen mouse clicks, sometimes for a small fraction of what the retail price would be.

 

[Baby Grand]

Part of the Problem (POP) is that a lot of management guys (and gals) read the same management books and go to the same management seminars where the management consultants are selling their how-to-manage-your-company-books, software and "advanced training". These same management guys & gals (and consultants) haven't made or designed anything in tens of years if they ever did. So they may have very little practical knowledge, but the management consultants build up the management guys & gals confidence by telling them they have all the answers.

So a common theme has been:
Look at Toyota.
They've been crazy successful.
So you should do like Toyota do.
But what do Toyota do?
JIT (Just In Time).
So ........... you should do JIT, too.

The problem is that you need a crackerjack JIT supply base to support your JIT business operations.
By the way - running a JIT supply base is really, really hard.
You have to believe it's the only way you will survive and work that way, every day, all the time.
Miss one ship datefor one part and somebody's gonna be pi55ed, because their work stops.

So if you don't have an A-Team JIT supply base, and you can't get a replacement part for a week, then you had better darn well have a weeks supply of parts laid by or the work stops ... for a week.

Getting off my soapbox, now.

 

[TCJatko]

The UPS strike of a decade or so ago really wreaked havoc on JIT operations.

 

[Ted Summey]

One thing that the chain auto parts stores have done is distributed their inventory thinly among multiple retaillocations throughout a city. Instead of stocking multiple items in a store or having fewer store fronts and a well stocked warehouse, they spread the inventory where retails sales will move product. They count on us to drive to multiple locations or wait until their regional warehouse can deliver again expecting us to bear the cost of multiple trips to their store.

I needed three dash mount fuse holders last year for a boat rewiring project, one came from Advance, one came fom O'Reilly's and one came from AutoZone. At least in my case all three were within a mile of each other. They forced the NAPA out. I would rather have the NAPA.

 

[sox3]

WE had a small engine repair business for 26 years. I couldnt stock all the parts for all the different equipment out there. We stocked parts for the lines we sold. When someone came in and wanted belts, they would complain how expensive the OEM parts were. Then they went to NAPA to buy a will fit part. So when sales drop on those items we stopped stocking them.
Then the customers that didnt buy the equipment from us complained that we didnt stock thier parts. Its a no win problem.
Thats part of the reason we sold 2 years ago and got out. Thank You to all the good customers that knew the best way to
maintain and keep your equipment in top shape is to use OEM parts. There are differences in them.