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Low Inventories Anger John Deere Customers!
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Jim Beam
Posted 4/26/2010 09:59 (#1175193 - in reply to #1174618)
Subject: Businesses should plan


Roaming the plains
If a farm is a business then the CEO, board, manager of that business should plan for future purchases and needs.

The farm will need fuel, seed, fertilizer and most pre-buy those commodities every year. Machinery should be looked at the same way.

I know that a lot of buying happens at the end of the year to avoid taxes but that can be planned out as well. If you can buy last minute then good for you but if can't buy last minute don't blame the mfg.

If you know that you will be needing a new planter or harvesting unit then you know the season of use. The companies have order writing programs to correlate. Get with your dealer and let them know that you will be interested when that happens and that you want to know when that typically happens so that you are prepared.

The Mfg has to plan as well and they base the production off of orders. They ask the dealers for orders months in advance of when they will be built to buy the materials and plan the labor off of the orders and usually bump that up to account for some inventory that can be sold as well. This has been tighter than in years past but that is a wiser way to ensure stability and longevity for the company. Too many examples of excess inventory killing or crippling companies.

If we were against government bailouts in the past we better not ask for Deere or anyone else to get one if they fail.

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