Just-about in time stocking of parts.

[jaotguy]

JIT is really JOT (just outta time) when the "IT systems" are geared to ordering only when at critical levels, problems occur... especially when the sole source manufacturer only does a production run of chips every 6 months or so.

Yeh, we need 300 XYZ, overnight delivery if in stock, GREAT! , WHAT ? we gotta wait till they produce another batch in 6 months?

its a cruel joke foisted upon us by bean counters and seminar consultants .... loyal customers simply go elsewhere or shop online today.

here in Ottawa (Ontario, CANADA) we used to have 5 large shops for electronic components ... today it is zero.
the same can be said for most industrial components.

I can order and get my parts from out West faster and cheaper than I can in town.

I'm dating myself , but things were easier to get during the 60's and 70's.

used to be a gear head , went into computers , now semi retired, playing with tractors and other toys. ;-)

 

[3v0]

Farm equipment dealers used to have a huge inventory with parts for equipment going back many decades. They often employed magic men who made sure the customers got the parts the needed.

The guys at the local JD shop said the huge inventories are gone. All but the most common parts are shipped from corporate distribution centers. Most any breakdown means at least a day of downtime just to get the part.

I do not know how the farmers manage.

 

[jaotguy]

farmers around here have 1 or 2 "spare" tractors for parts ... they sometimes borrow a tractor from a neighbor if they are stuck.

most country folk are like that ( insert country of choice ) :thumbsup:

 

[MessickFarmEqu]

these are lots of numbers that determine what gets stocked, but most dealers are looking at inventory turns and fill rates. You want your turns above 2 and fill rate from your inventory in the 90%. Stocking parts while expensive, is also how you make money as you can usually buy at a better price than if you have to order. Most of the time vendors offer terms on parts, so if your smart and you have good data on what turns you can stock order lots of parts and turn them before you have to pay for them. You can never have everything that someone may need, but parts is an area that is really managed by the numbers and if not done right the overhead can bury you. We keep 7-8 million in stock and have invested heavily in technology and people to help manage that.

 

[jmc]

Good points made here about management fads. I once made metal products and always had to send them outside for polishing, edm, or other lengthy, specialized operations. The general management fad was to delay paying your suppliers for 60 or 75 days so you got to use his money for free. Instead, I paid those suppliers as soon as the parts passed incoming inspection. Net result, our parts always went to the front of the line. The experts hadn't a clue.

 

[Coyote machine]

Today I took a 40 minute trip to town to get an air restrictor for my die grinder so I can better control the tool's speed. I went to Napa first and they had one item made of chrome and it had a small 1" diameter gauge included. They had it priced at $124 !!! I walked out.
Next stop, only other auto parts store in town- (no big boxes around). They had a solid brass restrictor and a single dial, no gauge, for $5.xx SOLD!! I also bought a solid brass close nipple for a couple of bucks, which is more than I wanted to spend, but I understand the supply demand thing, and I was able to ACTUALLY accomplish my task with one stop, (town) shopping.
The whole, Parts-Never-on-Time drives me NUTZ!! I can't stand it and now do my best to verify that what I need, and quantity is in stock, and set aside for me- even if it has to be prepaid, so I don't waste my time, gas and get frustrated. Even that is sometimes a hassle because I have to rely on someone who usually these days knows NOTHING and could give half a ratz A@$.
There needs to be some middle ground struck by business and customer needs so inventory turnover and profits are a part of but not the be all end all of being in business. I say fire ALL the consultants and listen to what works by opening one's eyes and ears to the predominant customer base.
Everyone wants to take an exit poll or survey and offer me the chance to 'win' something. Do me a favor and quit all that nonsense and just sell me what I came in to by when I come in to buy- not next week on a raincheck!
Quit the coupons/rebates, clip this, send in that, garbage and just sell whatever to me at a decent price!
That's all I ask. Have what you advertise on sale in quantity enough that one doesn't have to sleep on the sidewalk to be in the store in time....:confused3::2cents:

 

[kneedeep]

There is a big tractor dealer that has about a dozen branchs scattered over the farm belt that stock very few parts. The farmer we lease from keeps a parts book on all his equipment and when something breaks, he calls the dealer with part #. The dealer delivers 2 times to each location daily- once at night and once during the day from a central warehouse. Most of the time he can get his part next morning or by end of business day. Of course some parts have to be ordered and could take longer. He says it works for him as long as he keeps belts, hoses, cutter blades, etc in his shop. When he sells a piece of equipment the dealer buys back unopened inventory less re-stocking. He does pay a premium for parts but it keeps his operation going.

 

[RickB]

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:

The optimum stocking level for many replacement parts is a quantity of one.
The next higher stocking level from that doubles my inventory cost.
Best way to have that set of belts when you need them is to buy them now.
If they are truly a matched set, a set will be quantity one of whatever part number.
Nobody cares whether I have parts for the other guy's machine.
Managing inventory dollars and pieces is more of a science than most will admit.
There are hundreds of thousands more active part numbers now than in the 'good old days'.
I was told by facility personnel that the CNH Master Parts Depot in Lebanon, IN has more part numbers in stock than Ford Motor Co, GM and Chrysler have in their entire systems combined.

 

[jaotguy]

yes the good old days are gone .....

if you walk into a parts store today and order a timing chain for a 350 chev , the "expert" from behind the counter comes out with a timing BELT .. then tells you to double it up to install it. ....

or looks at you funny when you ask for a tire tube... whats a tube?

the old company had over 6 million in stock at any one time ... and could produce military equipment within a week of the order.
then came JIT ... they died within 2 years of implementation ... it never worked right.

as it was said before .... the human brain figured it out and it ran very well ... and took care of long lead times for sources so there were no shortages on the line.

can every shop stock all parts? never! but I hate being told the spark plug for my machine will be in "next week".

JIT works well for pencils and paper and mundane stuff ... things that fly off the shelves with great regularity.....
it is pathetic with "as needed parts" which is what most of us deal with.

remember a square peg in a round hole anyone? one size does not fit all. JIT = your favorite four letter word.

 

[FredH]

Owning my own truck , " JIT " is what keeps me in business :thumbsup:. Does not matter if price of fuel is $ 1.30 or $ 4.30 a gallon , that cost is past straight to the customer , be it the shipper or receiver . Use to deliver to huge warehouses all that time back in late '90's early 2000 . Now , even the big grocery chains have smaller warehouses and rather than 10 loads of 1 product in 1 day that would last a month or better , they take delivery of a load every day or every other day and turn it over faster , which is how " Messicks " described it also . I always try to have the typical stuff on hand around here from spare drive belts for mower , filters for tractor , vehicles and APU on truck , oil , not because it is not carried in town which is 25 to 35 miles round trip depending on were I go , but I usually buy bulk via internet and if you shop around , lots of times find a place with low or even free shipping thus never leave your house .

Fred H.