Inventory Numbers
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Inventory Numbers
The inventory "days supply" numbers as of mid December for the truck world are as follows. The Titan has a 138 days supply, F-150, 106. Avalanche 145. Silverado 143 and the Sierra line 137. The "norm" use to be around 65. What do the sponsored dealers here believe is the answer to reduce these higher than normal inventory totals? HIGHER incentives or LOWER gas prices?
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From: Damascus-Boring, Ore
Those numbers aren't as high as you might think. It takes roughly 90 days to replace a piece of sold inventory, so that's really the baseline. A 100 day inventory is ideal- better to be running a little heavy than light (can't sell out of an empty cart). This is the time of year than dealers will stock "fat," knowing the holiday vacations will affect production/delivery schedules. A national railcar shortage is affecting delivery times as well- so it could be February before I get a replacement to a November sale.
Here's why you want to run "heavy." On December 1st I had a 120 day supply of SD's on the ground. Today, based on a 30-day turn rate, I'm looking at a 20 day supply (had a little run on them this month
). Meanwhile, over in Silveradoland, we had about a 15 day supply going into December, and are now up to about a 120 day supply (go figure). We had a number of units delayed in transit finally arrive, along with regularily scheduled units. Drive ya nuts trying to balance the mess- used to do it for 15 years, glad I don't anymore.
Here's why you want to run "heavy." On December 1st I had a 120 day supply of SD's on the ground. Today, based on a 30-day turn rate, I'm looking at a 20 day supply (had a little run on them this month
). Meanwhile, over in Silveradoland, we had about a 15 day supply going into December, and are now up to about a 120 day supply (go figure). We had a number of units delayed in transit finally arrive, along with regularily scheduled units. Drive ya nuts trying to balance the mess- used to do it for 15 years, glad I don't anymore.
Logistics Pro
Joined: Nov 2002
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From: Mansfield, TX USA
Originally Posted by polarbear
Those numbers aren't as high as you might think. It takes roughly 90 days to replace a piece of sold inventory, so that's really the baseline. A 100 day inventory is ideal- better to be running a little heavy than light (can't sell out of an empty cart).
http://www.autonews.com/apps/pbcs.dl...73231071436858
You are at the far end of the supply chain. Dealers in the Midwest don't wait 90 days.
Last edited by jschira; Dec 30, 2005 at 06:54 PM.
Post Fiend
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From: Damascus-Boring, Ore
But how much of that supply is actually on dealer lots as compared to manufacturers' overflow lots ("sales banks")? There was an article in Autonews about Chrysler pushing excess plant inventory onto dealers.
You don't see that much anymore. I know Chrysler did that recently, but I haven't seen GM or Ford warehouse excess inventory in years.
http://www.autonews.com/apps/pbcs.dl...73231071436858
You are at the far end of the supply chain. Dealers in the Midwest don't wait 90 days.
Thanks for reminding me.
You're right, though- we're at the wrong end of a 3,000 mile pipeline.
You don't see that much anymore. I know Chrysler did that recently, but I haven't seen GM or Ford warehouse excess inventory in years.
http://www.autonews.com/apps/pbcs.dl...73231071436858
You are at the far end of the supply chain. Dealers in the Midwest don't wait 90 days.
Thanks for reminding me.
You're right, though- we're at the wrong end of a 3,000 mile pipeline.
Logistics Pro
Joined: Nov 2002
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From: Mansfield, TX USA
Originally Posted by polarbear
But how much of that supply is actually on dealer lots as compared to manufacturers' overflow lots ("sales banks")? There was an article in Autonews about Chrysler pushing excess plant inventory onto dealers.
You don't see that much anymore. I know Chrysler did that recently, but I haven't seen GM or Ford warehouse excess inventory in years.
You don't see that much anymore. I know Chrysler did that recently, but I haven't seen GM or Ford warehouse excess inventory in years.
In the 60s, Chrysler was famous for running its factories flat out, irrespective of dealer orders. They then had a "Fire Sale" every fall to get rid of excess inventory. I used to go down with my dad to the back lot of a huge local dealer and tour all the leftovers. The dealer would buy 200-300 at a time. Lots of them were cats and dogs. Imperials with no air. Chryslers with sticks. Blue car with red interior, etc.
Of course, with my dad, we just looked, never bought (but I have been making up for that since adulthood
).How'd that local delivery go for you?
Last edited by jschira; Dec 31, 2005 at 05:39 AM.
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