Daily Stock Orders / Decreasing DEPTH increasing BREADTH /

[CroweChizek]

It seems that that the pros of daily stock orders out number the cons. I have been out of the parts business for a couple years and the franchise I worked for did not have daily stock orders. I believe that daily stock orders would have made my job easier. If your system setups are properly adjusted for reduced turn around times of daily stock orders your days supply settings should be reduced. If your days supply is reduced your so-called frozen capital is reduced. If a part qualifies for stocking wouldnt you want it on the shelf as soon as possible to give yourself 4 more days of selling opportunities (you wouldnt want to be sending a driver to pick up a part that is on a stock order coming in 4 days). Also dont daily stock orders give you more opportunities to put special order parts on a stock order vs. a daily order? Without changing phase-in criteria I dont see how changing the intervals of ordering would increase the breadth of inventory unless you were more liberal with your phase-in criteria since you may have more capital available. And if you do increase the breadth of inventory ageing inventory would need to be monitored more closely. I remember someone once saying that some factory programs benefit the dealer but all factory programs benefit the factory. I think daily stock orders benefit both, and customers as well.