Machines & Maintenance
Stocked Up, Stretched Thin
Rising Freight Costs, Longer Lead Times, & Storage Requirements Are Changing Inventory Decisions
By Maggie MacHale
When a machine is needed in the field, waiting 60 days for a part can be agonizing. But ordering enough inventory to cover that lead time creates another problem: finding somewhere to put it.
As agricultural equipment gets larger and technology gets smarter, inventory management becomes about more than just deciding how much to keep in stock. Physical storage, tied-up capital, freight, lead times, and parts availability all factor into the challenge.
For equipment dealers and businesses, finding that balance can mean making difficult decisions about what to build, what to stock, and what can wait. Yang Fang, CEO of Beagle Technology, and Jeremy Matuszewski, founder and CEO of Thunderstruck Ag, offered their perspectives on how storage, freight, and parts costs are shaping operations.
“ Every machine sitting in storage ties up both space and capital,” Fang said.
Growing Footprints
It’ s no surprise that larger machines present a physical challenge when it comes to storage. Minnesota Public Radio compares modern equipment to the size of sauropods, as combine harvesters are almost ten times heavier today than they were in 1960.
Fang points out that completed machines present some of the biggest issues when it comes to storage. According to Fang,“ They take significant floor space and are not something you can easily move around or stack.”
“ A larger machine usually means more components, assemblies, spare parts, and service inventory that also need to be stored and organized,” Fang continued.“ That can add up very quickly. Even for us, we have to think about both parts storage and space for machines being assembled, tested, or prepared for deployment. For companies producing much larger equipment, that storage challenge becomes even more significant because you are managing the footprint of the
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