The Ford Barn

petehoovie · 02-16-2020, 12:50 PM

Backorder clarification > https://www.investopedia.com/terms/b/backorder.asp

tubman · 02-16-2020, 01:06 PM

Quote:

Originally Posted by petehoovie

Backorder clarification > https://www.investopedia.com/terms/b/backorder.asp

Well, there goes another "Reliable Internet Source" out the window.

uncle buck · 02-16-2020, 08:19 PM

As I have said in the past , if you can do it better then do it. These guys have been providing us parts successfully for decades now so their business model must work for them. It certainly has worked for me and many others to be able to source parts from them.

35fordtn · 02-16-2020, 08:34 PM

While my personal opinion is that "out of stock" is the most prevalent option, why are we arguing over the terminology?

Back-Order, out of stock, temporarily unavailable, etc. etc. Makes it clear the supplier is out of said product. Usually, a simple phone call will reveal when/if it will be available again..

Heaven forbid a company to have a sale on products, as it can turn into a quite negative slinging match on here.

I am a dealer through "most" all reproduction places except Drake, so I am not trying to defend his products or company. I think it is just very silly, and a bit of a slap in the face to a company that has provided parts for decades in this hobby; reading this entire thread.

Very recently I ran out of a product (a very small one at that) that we make here locally. I waited until I had enough people (and vendors) interested in purchasing them again before I re-stocked, due to costs involved and declining interest. I guess that puts me in that same category as the arguments in this thread.

petehoovie · 02-16-2020, 08:44 PM

Quote:

Originally Posted by 35fordtn

Heaven forbid a company to have a sale on products, as it can turn into a quite negative slinging match on here.
I think it is just very silly, and a bit of a slap in the face to a company that has provided parts for decades in this hobby; reading this entire thread.

It's "laughable", Mike - these never ending criticisms of Drake ...A real head shaker...
The bashing of MAC's is even worse...

TJ · 02-17-2020, 11:20 AM

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Quote:

Originally Posted by 35fordtn

While my personal opinion is that "out of stock" is the most prevalent option, why are we arguing over the terminology?

Back-Order, out of stock, temporarily unavailable, etc. etc. Makes it clear the supplier is out of said product. Usually, a simple phone call will reveal when/if it will be available again..

Heaven forbid a company to have a sale on products, as it can turn into a quite negative slinging match on here.

I am a dealer through "most" all reproduction places except Drake, so I am not trying to defend his products or company. I think it is just very silly, and a bit of a slap in the face to a company that has provided parts for decades in this hobby; reading this entire thread.

Very recently I ran out of a product (a very small one at that) that we make here locally. I waited until I had enough people (and vendors) interested in purchasing them again before I re-stocked, due to costs involved and declining interest. I guess that puts me in that same category as the arguments in this thread.

Well said Michael.

philipswanson · 02-17-2020, 12:05 PM

I don't bother going to Drake until a last resort. Almost all the time, Carpenter has what I need. I also like the fact, unlike Drake, that Carpenter makes allot of his own stuff like rubber products for instance.

Hal Beatty · 02-17-2020, 12:36 PM

Quote:

Originally Posted by 35fordtn

While my personal opinion is that "out of stock" is the most prevalent option, why are we arguing over the terminology?

Back-Order, out of stock, temporarily unavailable, etc. etc. Makes it clear the supplier is out of said product. Usually, a simple phone call will reveal when/if it will be available again..

Heaven forbid a company to have a sale on products, as it can turn into a quite negative slinging match on here.

Welcome to the internet/social media... I'm still trying to decide if the advantages outweigh all the crap.

tubman · 02-17-2020, 12:46 PM

I have no dog in the fight about who handles their backorders properly, but I can offer some clarification as to the terminology. I owned and ran a company for almost 50 years that specialized in computer systems for small to medium sized companies, just about all of which were extremely successful.

First of all, there are three basic statuses for an inventory item :

1. In stock
2. Temporarily out of stock
3. Unavailable.

"In Stock" is defined as the quantity available, which is On Hand minus Committed Inventory (the amount committed to fulfil orders already in house). Thus it is possible to have a shelf full of an item and still be out of stock.

"Temporarily Out of Stock" is defined as an item that has not enough available to fulfill future orders, but there is a tangible commitment to add to inventory, such as an outstanding purchase order or a scheduled manufacturing order.

"Unavailable" is defined as an item that has not enough available to fulfill future orders and there is no tangible commitment to acquire additional inventory.

An item is "Backordered" on a customer order if it is "Temporarily Out of Stock", but not if it is "Unavailable".

It can get complicated beyond this. For example, some businesses may divide "Unavailable" into two categories : "Currently Unavailable" and "Discontinued" in order to give customers more information as to the actual situation. If this is done, it is up to the judgement of the Purchasing Agent or Production Manager.

The status of Backorders is also subject to company policy if the demand exceeds the quantity available plus the quantity on order. As an example. A company has 100 of an item with 80 committed to current orders and 40 on order when four new orders for 20 each come in. Theoretically, the item in question should be flagged as backordered on the first three customer orders but on the fourth order it should be flagged as unavailable. In practice this is never done, primarily because it looks bad and secondarily, the existence of a current purchase order implies the probability of future purchase orders.

All of this is a requirement of an integrated inventory management system, whether it is computerized or run manually. As a side note, when I started in the computer business in the middle sixties, the company that I worked for had all of this down and working correctly. There is no excuse that current systems can't do the same.

Thus endeth "Inventory Management 101" at "Ford Barn University".

02-16-2020, 12:50 PM	#41
petehoovie Senior Member Join Date: May 2015 Posts: 8,076	Re: Drake Sale: Backorder clarification > https://www.investopedia.com/terms/b/backorder.asp __________________ The only thing nice about being imperfect is the joy it brings to others.... *"Silver rings, your butt! Them's washers!"* "We shot our way out of that town for a dollar's worth of steel holes!" - from 'The Wild Bunch' - 1969 https://www.youtube.com/watch?v=7NReUd2_0u0

02-16-2020, 08:19 PM	#43
uncle buck Senior Member Join Date: May 2010 Location: Snohomish,WA Posts: 1,030	Re: Drake Sale: As I have said in the past , if you can do it better then do it. These guys have been providing us parts successfully for decades now so their business model must work for them. It certainly has worked for me and many others to be able to source parts from them. Last edited by uncle buck; 02-17-2020 at 10:01 AM.

02-16-2020, 08:34 PM	#44
35fordtn Senior Member Join Date: Aug 2010 Location: McMinnville, TN Posts: 2,327	Re: Drake Sale: While my personal opinion is that "out of stock" is the most prevalent option, why are we arguing over the terminology? Back-Order, out of stock, temporarily unavailable, etc. etc. Makes it clear the supplier is out of said product. Usually, a simple phone call will reveal when/if it will be available again.. Heaven forbid a company to have a sale on products, as it can turn into a quite negative slinging match on here. I am a dealer through "most" all reproduction places except Drake, so I am not trying to defend his products or company. I think it is just very silly, and a bit of a slap in the face to a company that has provided parts for decades in this hobby; reading this entire thread. Very recently I ran out of a product (a very small one at that) that we make here locally. I waited until I had enough people (and vendors) interested in purchasing them again before I re-stocked, due to costs involved and declining interest. I guess that puts me in that same category as the arguments in this thread.

02-17-2020, 12:05 PM	#47
philipswanson Senior Member Join Date: Oct 2015 Location: Bonita, CA Posts: 1,374	Re: Drake Sale: I don't bother going to Drake until a last resort. Almost all the time, Carpenter has what I need. I also like the fact, unlike Drake, that Carpenter makes allot of his own stuff like rubber products for instance.

02-17-2020, 12:46 PM	#49
tubman Senior Member Join Date: Dec 2013 Location: Minnesota, Florida Keys Posts: 10,303	Re: Drake Sale: I have no dog in the fight about who handles their backorders properly, but I can offer some clarification as to the terminology. I owned and ran a company for almost 50 years that specialized in computer systems for small to medium sized companies, just about all of which were extremely successful. First of all, there are three basic statuses for an inventory item : 1. In stock 2. Temporarily out of stock 3. Unavailable. "In Stock" is defined as the quantity available, which is On Hand minus Committed Inventory (the amount committed to fulfil orders already in house). Thus it is possible to have a shelf full of an item and still be out of stock. "Temporarily Out of Stock" is defined as an item that has not enough available to fulfill future orders, but there is a tangible commitment to add to inventory, such as an outstanding purchase order or a scheduled manufacturing order. "Unavailable" is defined as an item that has not enough available to fulfill future orders and there is no tangible commitment to acquire additional inventory. An item is "Backordered" on a customer order if it is "Temporarily Out of Stock", but not if it is "Unavailable". It can get complicated beyond this. For example, some businesses may divide "Unavailable" into two categories : "Currently Unavailable" and "Discontinued" in order to give customers more information as to the actual situation. If this is done, it is up to the judgement of the Purchasing Agent or Production Manager. The status of Backorders is also subject to company policy if the demand exceeds the quantity available plus the quantity on order. As an example. A company has 100 of an item with 80 committed to current orders and 40 on order when four new orders for 20 each come in. Theoretically, the item in question should be flagged as backordered on the first three customer orders but on the fourth order it should be flagged as unavailable. In practice this is never done, primarily because it looks bad and secondarily, the existence of a current purchase order implies the probability of future purchase orders. All of this is a requirement of an integrated inventory management system, whether it is computerized or run manually. As a side note, when I started in the computer business in the middle sixties, the company that I worked for had all of this down and working correctly. There is no excuse that current systems can't do the same. Thus endeth "Inventory Management 101" at "Ford Barn University".