[thackney]

On time deliveries did not mean the purchase agreements were only made a day or two before they were needed. They simply were trying to push inventory management to their suppliers. They would negotiate up front a minimum number to be purchased for the year and then request when they would be delivered.

They were NOT saying I need 100 toasters delivered in 2 days; what's the price?

[cva66snipe]

On time deliveries did not mean the purchase agreements were only made a day or two before they were needed. They simply were trying to push inventory management to their suppliers. They would negotiate up front a minimum number to be purchased for the year and then request when they would be delivered.

But the on time delivery did not work. When a place like Walmart is out of items like Penzoil 10W30 motor oil for a couple of weeks it means it's also not at the warehouse. IOW minimal inventory. You can't do business like that long without a notable loss so Walmart corp learned.

The origional posters idea make sense in many ways.. We do need more regional storage capacity. In SEPT 2008 if memory serves me right several southeast states were literally shut down in a matter of a couple of days due simply from refineries in the Gulf shutting down ahead of a hurricane. That is a correctable and preventable market hazard.