Monday, August 25, 2008

Running Near Empty in a Business

Have you noticed that the most every business is now cutting inventory down
to meet the bare minimum weekly (or even daily) demand that historical data
suggests they need to have on hand?
Going to Rite-AidR, Albertsons, or my recent ongoing experience Rick's
Fencing, you walk into a store and want 3 or 4 of item x and they do not
have it on the shelf. They stock 1 or 2 items and if two people come in and
get them before you that day, there is nothing. In my yard fencing case I
wanted just 16 feet of fencing - and after a week and two days (after I had
already paid for it) I still do not have the fencing. Out of their 4 stores
and their warehouse, it has not been located and delivered to my local store
- but they were more than willing to sell it to me and promise that it will
be delivered two days latter to the store.
Whose fault is this? Government - they tax inventory of businesses and thus
having stuff "lying around" costs them money (REALLY STUPID POLICTY
implemented without the consent of the governed and no way to rescind it at
all that I have ever seen), the idea of purchasing and having items around
COSTS a company money both now and if it is never sold. But now, I will
never purchase anything unless all items are there on hand now. Why should I
be penalized and forced to wait weeks - sometimes months - to get something?
If they are not willing to have it on hand, then I am not willing to pay up
front for commodity goods, and from a business side I see why, from a
consumer side it is not good - we are NOT in the 19th century, but
Government - all sizes - is to blame for this new way of running a business.

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