What is the deal with back orders lately this is getting old not all of us can afford to keep numerous items in stock especially blanks?

Mike
Mikes Custom Fly Rods

The dealers are in the same boat as the rest of us. They do not want to have a ton of inventory sitting around. People are hanging on to their money and not buying fishing gear like they were last year. The dealers have to make minimum amount in order to order from the manufacturers and they are holding orders waiting to get their minimum so they get a better price. When you order tell them to call or email you if anything is going to be back ordered. Then you can check with other suppliers it you need the item in a hurry.

Nearly every industry has gone to "just in time" order fulfillment. It started before the recession and became more pervasive over the last few years. Essentially, no one wants to warehouse product ... for a number of reasons. Even dealers that "want inventory sitting around" can't get it. The stuff just doesn't exist ... it hasn't been made yet. Manufacturing runs are being designed completely around orders - this causes ripples that have "whitecaps" or periods of frustration if you will.

The ONLY way to "buffer" yourself is to order MORE than you need, build your own stockpiles ... not just when available, but by design (backordering). IF you aren't willing to do that, be willing to compromise ... and occasionally do without.

There isn't another answer AND there probably will not be a return to the days of old - it just isn't in the cards. People are going to be more conservative, even after the economy turns to a more robust scenario.

They do this where I work, they call it lean management.

Mike



Edited 1 time(s). Last edit at 10/01/2010 10:00PM by Tom Kirkman.

It is very tough to be a small businessman these days. I think we need to take care to not start saying, well they can afford it. They should just order those small orders from the manufacturers, the heck with their proffit or bottom line, so they can have everything on hand that anyone would ever want/need. I think then you would see a lot fewer vendors like the "good Old Days".

Well said Kerry

Paul@soonercustomrod.com

You have to remember it is getting close to the end of the year. Everyone wants to keep their inventory down.

Good Wraps Bob

Mike -
You actually summed it up from the beginning - you can't afford to keep inventory on hand and neither can they. In some states on-hand merchandise (inventory) is taxed at the end of the business year. Yes, some distributors were able to take some write-off as depreciation. I say "were" because the tax laws either have already or are soon changing and businesses may be hurt over the next year (or two or three) depending on what our lawmakers in Congress do - or do not do.

IMO - If you build rods as a "pro" for a certain application, you should have what you feel are the best blanks and components on hand at all times. Not only so you don't wait on backordrs, but to be able to show customers. For th most part you should be able to steer your customers into ordering rods built on your preference of blanks, using our prefernce of components. THe only way you can do this is to have them on hand and you show & explain why this is what you feel is the "best" rod for a particular application. That is part of th price of a custom rod. Whil thr are a lot of people who know what they want specifically, the majority of people do not.

Backorders are a way of life. I sell components and blanks for the niche fishing I do. CAn't compete with th big boys wth a big catalouge/webiste with all the compinents in the world - nor do I want to. I've done well stocking a small inventory for the fishing that we do here in the North East, this reduces the backordrs from me because I donot have to invest a ton of money in a ton of products and my inventory moves off the shelves.

The manufuacturers of quality blanks are in the same pickle. High quality precursor and prepeg has a shelf life and shifting markets no longer allow the sporting goods industry to pick and choose delivery schedules without very good long range planning and cash flow. The supply of quality blanks is a business. Custom builders need to work very closely with their suppliers to project future sales to improve the chances "one blank just in time order" can be filled.

I just went through this and I will say my complaint is not the waiting but the lack of communication. My initial order had back ordered items so after about 3 weeks of not receive anything in the mail and not hearing anything about it I contact the company and they then let me know that stuff is back ordered but that they will send out what they have. A couple of weeks later I try contact them multiple times to see the status of the back ordered items when I finally get a hold of them they say it is supposed to arrive that afternoon and it will be out the same day. I tried to give some options of what else they could send if it does not come in but they would not listen and assured me it would be in. So here it is another week later no package and no contact so I call again and they say it did not come in but that they got some from a show that they went to over the weekend and when she unpacks everything it will be on its way. But if they had just called me or emailed me and let me know I could have switched to something else just to be able to have something. So yeah I get that times have changed but I still say that is not good service. If anything they should be doing like Billy said and try and sell me on what they do have in stock. Because I am not doing this as a business I am making presents for my family so I cant just buy a bunch of stock to sit around but I do still have a deadline to get these completed by. Anyway I guess all one can really do is try harder to by local. If you can put your hands on it you can buy it.

We have also noticed this increase in concern regarding backorders in the past few months (not from our warehouse but industry wide). It is true that holding too much inventory can be bad, and there are many variables to consider when forecasting inventory levels, especially when dealing with multiple vendors having different lead times, product types, etc... However, we believe that if you choose to be a supplier and run a warehouse then you are obligated to keep products on hand and minimize backorders. This means analyzing products for sales trends, flagging problem areas, and adjusting your inventory management accordingly, its hard work and its time consuming. It takes a significant chunk of our resources and we still don’t always get it right. As respectable as our fill rate has become we must continually maintain it and strive to improve upon it. It is the responsibility of a supplier (or retailer) to do so.

-The Batson TEAM
BatsonEnterprises.com

Geoff

I like your company (along with others) and think you are one or more levels above the outlets that John and Mike were talking about ordering from. Based on what you said they would have to have not just almost all of the PacBay products for example which is considerable, but all the other manufactures products out there, and not just ONE of everything. The different wants, needs and likes for different products for all the builders and customers out there is almost infinite. Most vendors can't have a big inventory of EVERTHING. I doubt that a company as big as yours could stock all your products as well as all the other competitors products even with your financial resources. Hence we see people like Billy stocking for the Nitch because like others he not only doesn't have the money, but doesn't have the real estate in which to stock/store everything. Even having a decent quantity of that nitch or your choice of selection on hand may not be enough when hit by a flurry of requests for similar/same items. Multiply that world wide then when that little vendor goes to the manufacturer to get some more, they are told they will have to wait because the manufacturer is now also out of some of those items. Therefore more will have to be made or china or some other remote sub manufacturer will have to be turned on to make more, after they finish their current run and retool. I am not a vendor and I have had to deal with back orders and if possible try to have a little patience or change my component choice. Having said all that, I must say it is absolutely lousy business practice for the vendor to not communicate with the person to let him know what is happening and give him some options and no Bull about the arrival time of the out of stock items. The manufacturer also needs to share in the honesty bit and give good dates. The vendor and the manufacturer need to guard against giving pie in the sky impossible arrival dates just to keep the customer hanging on so they won't lose the sale of their products. If I was the recipient of bad dates or lack of communications, I WOULD TAKE MY BUSINESS ELSEWHERE. if enough people did this those poor business practice people/firms/manufacturers might get the word and change or go out of business. After all it is us buying from them who help them in some small way to stay in business.
Kerry

Kerry you hit the nail on the head. Not long ago there were comments about Lamiglas discontinuing a line of blanks. I called Josh at Lamiglas and asked if it was true. He said it was, reason being there was not enough orders for that series of blanks. Yes there were a few orders but not enough to justify keeping that model. With todays economy everyone is cutting back on over stock

Good Wraps Bob

Kerry,
I agree with your comments regarding communication. It is good practice that vendors give non-exaggerated estimates on delivery of backorders.
I think you would agree that a downward trend in socking levels at the distributor and dealer levels is a bad thing for everyone. I know that when we receive an inquiry regarding availability and we don’t have the item in stock we often lose the sale. I can understand that in this economy businesses are trying to keep inventory down. But, not having stock of at least the good selling items can only perpetuate a businesses’ misfortune.

-The Batson TEAM
BatsonEnterprises.com

LMAO!! Try getting some Pacbay minima fly guides! Be prepared for a SIX MONTH or more wait.

LMAO! Try getting some Pacbay minima fly guides! Talk about a half year back order!

Peter where are you from or where is your supplier located? I would call Utmost Enterprises, they are located about 1mile from PB. Utmost ph. is located to you left on the sponsors list

Good Wraps Bob

Mr. Sprague,
Which item are you looking for? I'm not showing a single model "F" Minima guide that is not currently on hand. That is the frame typically used for fly. I can even tell you where to find the model you are looking for if you send an email to info@fishpacbay.com.

-The Batson TEAM
BatsonEnterprises.com

When I was in business and I placed a order for guides I always tripled my order and I always ordered a extra blank. I retired in 2000. My wife is constantly on my back side and wants me to sell out. NO WAY JOSA! I still build rods for friends and relatives. This gives me a opportunity to try differnt things. Hey it keeps me out of the SALOONS and away from table dancers LOL

Good Wraps Bob