clay wrote:
Cliff wrote:
On Tue, 15 Mar 2005 23:29:31 GMT, "MM" wrote:


Yea, They're real slimballs. Drove more than one company out of
business
with that BS. I hope they get what's comming to them.


Sears.
Walmart.
GM.
Ford.

What are you, a communist?

Except of course, that AM culture seems to breed in the kind of
attitude
referred to previously.

Capitalism?
So you are against it?

The other companies mentioned, it is the nature
of the business.

Unless your name is ... ?

On the other hand, companies like Costco have so much clout that they

FORCE manufacturers to actually BUY back overstock inventory, or it
is
you can't distribute your product through our stores....... amazing I

have heard (unconfirmed) that Walmart has the same policy.

Perhaps it's standard in many businesses.
What do the contracts say?
Ever heard of consignment sales? Vendor financing?

How many shops make extra products just in case there's a
reorder so that their own profits on it might be higher?
--
Cliff

Something is happening in the automotive aftermarket that has even more
chutzpa than asking your vendor to take back overstocks.......which is
actually quite common in the automotive industry.

When I ran the NAPA store, we would patrticipate in quarterly
"classification" where the warehouse would take back parts that had gone
obsolete or had moved down a few notches in classification in exxchange for
me upgrading my inventory to faster moving part numbers.

However, for the last few years Auto Zone has been trying to implement a
"Pay On Scan" (POS) policy with its manufacturers/vendors where they would
stock the A.Z. warehouse and store shelves, but not get paid until the
part's bar code goes through the store scanner.

How many millions/billions do you thing a company such as A.Z. has tied up
in inventory?

And, the trade publications all say that A.Z. is using similar "...do what
we ask, or we won't stock your line" threat tactics.

"Pay On Scan" (POS) policy with its manufacturers/vendors
where they would stock the A.Z. warehouse and
store shelves, but not get paid
until the part's bar code goes through the store scanner.

I wonder what the IRS thinks of all this. They probably don't care as
long as *somebody* is paying the tax on the value in inventory. But I
would think that the taxable value of the inventory goes up as it goes
closer to the consumer and this seems to skip a step.

Tim.

"Tim Shoppa" wrote in
ups.com:

"Pay On Scan" (POS) policy with its manufacturers/vendors
where they would stock the A.Z. warehouse and
store shelves, but not get paid
until the part's bar code goes through the store scanner.

I wonder what the IRS thinks of all this. They probably don't care as
long as *somebody* is paying the tax on the value in inventory. But I
would think that the taxable value of the inventory goes up as it goes
closer to the consumer and this seems to skip a step.

Tim.




Is done, and has been done for quite some time in manufacturing. Even in
spare parts. It is technically called 'Consignment Inventory'. AutoZone
doesn't own the inventory until it is sold to the consumer. There are
*significant* cost savings associated with this (for AZ).


--
Anthony

You can't 'idiot proof' anything....every time you try, they just make
better idiots.

Remove sp to reply via email

"Anthony" wrote in message
...
"Tim Shoppa" wrote in
ups.com:

"Pay On Scan" (POS) policy with its manufacturers/vendors
where they would stock the A.Z. warehouse and
store shelves, but not get paid
until the part's bar code goes through the store scanner.

I wonder what the IRS thinks of all this. They probably don't care as
long as *somebody* is paying the tax on the value in inventory. But I
would think that the taxable value of the inventory goes up as it goes
closer to the consumer and this seems to skip a step.

Tim.




Is done, and has been done for quite some time in manufacturing. Even in
spare parts. It is technically called 'Consignment Inventory'. AutoZone
doesn't own the inventory until it is sold to the consumer. There are
*significant* cost savings associated with this (for AZ).

Which must be reflected to some extent in the price AZ is paying their
suppliers. There has to be a premium charged for those terms.

Why wrote in
:


Is done, and has been done for quite some time in manufacturing. Even
in spare parts. It is technically called 'Consignment Inventory'.
AutoZone doesn't own the inventory until it is sold to the consumer.
There are *significant* cost savings associated with this (for AZ).

Yep, I had to do that for a big customer in TX, kicker was the county
they were in would send me the inventory tax bill for my parts that
were at the customers plant...

Yes, because you were, in effect, warehousing them at your customer's
facility.




--
Anthony

You can't 'idiot proof' anything....every time you try, they just make
better idiots.

Remove sp to reply via email

"Anthony" wrote in message
...

Is done, and has been done for quite some time in manufacturing. Even in
spare parts. It is technically called 'Consignment Inventory'.

One step beyond that is "JIT" (Just In Time) manufacturing. The vender
literally delivers the part to the assembly line at the moment it is needed.
Ideally, (Dell computer does this) the unit does not start down the assembly
line until it is sold, so the manufacturer holds no inventory of parts or
finished goods.

Vaughn

On Fri, 18 Mar 2005 19:51:08 GMT, Why wrote:

I know so they screwed me twice, if they bought the parts when I ran
them I would not have to pay the inventory taxes & they would have
paid me on the spot, instead on a few a month.

You want them in trucks going down the road at tax time.
--
Cliff

Bob Paulin wrote:

However, for the last few years Auto Zone has been trying to implement a
"Pay On Scan" (POS) policy with its manufacturers/vendors where they would
stock the A.Z. warehouse and store shelves, but not get paid until the
part's bar code goes through the store scanner.

I believe it's called a "floor plan".
The lawn and garden equipment industry does this, my neighbor used to sell
Snapper and LawnBoy, he paid for none of the inventory on the floor until he
sold it, although I think there was a 12 month time limit.
A local Cub Cadet dealer lost their franchise when the sales reps showed up and
found that they had sold most of their inventory and had not reported it as
sold.

The company I work for is in the process of switching their chemical
use/inventory over to a similar system, we can have the chemicals in stock, but
we don't pay for them and the expiration date clock does not start till we open
the container.
If we don't use them before the "closed" shelf life expires we get fresh rather
than throwing it away.
Should eliminate a ton of waste. Example, we use a fair amount of loctite
products, but only on #4-#10 screws, so a very small bottle would last a long
time. A few years ago some bozo in purchasing decided we could save money if we
bought pint bottles of loctite. Yes, we used alot of small bottles, but it's
pretty hard to pass a pint bottle around to 500 assembly operators.
LOTS of loctite got throw out that year!!!

Tom





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You want them in trucks going down the road at tax time.

No so far-fetched an idea. I know a place that stores material and
finished parts in trailers and says "material/parts in transit".

--
Remove "nospam" to get to me.

Ummm, Tom.... I usually keep a small bottle of loctite in my tool box,
and refill it from the shop's pint bottle as needed......
Ron

Hell, you all can circumvent the inventory tax by warehousing in
Nevada. No inventory tax here. The Reno/ Fallon area is full of company
warehouses to service CA and the northwest. JC Penney, Amazon, BMG,
McMaster-Carr, etc.......
Ron

doo wrote:
Hell, you all can circumvent the inventory tax by warehousing in
Nevada. No inventory tax here. The Reno/ Fallon area is full of company
warehouses to service CA and the northwest. JC Penney, Amazon, BMG,
McMaster-Carr, etc.......
Ron


Wuner if that's why msc moved from ny to pa.....