I feel compelled to address a key, "hot" issue of heated discussion regarding Factory Five Racing and our products.
That would be the issue of backordered parts.
I'm not going to do all the math that David Smith did about a year ago, which show the percentage of parts backordered from our kits in the virtually NEGLIGIBLE range.
The FACT(s) are that:
1. When your kit has a backordered part that delays your build, percentages don't matter to you, you NEED THE DARNED PART.
2. When your kit has a backordered part for which you are waiting, IT IS COMPLETELY MY FAULT. Not our Shipping Department's, not the customer support people in the front office, not our Tech support people's, MINE. PERIOD.
What that means is that, for those of you who have experienced any trouble or delays in obtaining necessary parts from Factory Five, don't blame Shipping, Customer Service, or Factory Five as a whole, blame ME. If the part had been in stock in the first place, you wouldn't have been waiting for it, would you?
Without going too deeply into Inventory Management 101, those of you who own, manage, or operate a small business will understand these additional facts:
1. While Factory Five Racing may seem like a colossal operation from the outside, we are actually a relatively small company with limited resources.
2. There is a very delicate balance to be reached with the utilization of those resources, including carrying costs of inventory. It would be actually VERY simple to eliminate any and all backorders from our kits. All I would have to do is spend a fortune of cash to stock up on all the parts we would need to build our kits for the next year or so, including tose extremely hard-to-find items, on which we are COMPLETELY dependent on some Mom-and-Pop vendors, who are the only supplier in the western hemisphere for the gitchie-goomie housing flenuter valve return springs. The problem with this solution, however, is that doing so would cripple our cash flow, and either put us out of business (worst case) or forego any other requirements for that cash flow (i.e. R/D development of new products---the GTM for example), which would also cripple the company by stalling any future growth.
Another potentially simple solution would be to hire dozens more people to facilitate the volume of product we are producing. Again, those who run small businesses will understand why this is a potentially very dangerous option. When Factory Five hires someone, we don't do so with the intention of keeping them just for the "busy season".
Implementing either of the above-listed options would certainly lead to a substantial increase in our cost(s), which would certainly (eventually) be passed along to our customers.
I am well aware of some of the costs we are incurring by shipping backordered parts after the kit ships, etc.
I am also jumping through hoops on a daily basis to strike this delicate balance of resources, so as to minimize the problems, keep our pruducts MORE than competetively priced, and maximize both customer satisfaction as well as profitability for this beloved company (you would want YOUR job here to last, wouldn't you?).
My final set of facts before I tie on the blindfold and light the cigarette:
1. Factory Five Racing produces the BEST QUALITY PRODUCT IN ITS' MARKETPLACE. PERIOD.
2. Factory Five Racing offers the BEST VALUE FOR OUR PRODUCT IN ITS' MARKEPLACE. PERIOD.
3. Factory Five Racing has THE LONGEST LIST OF HIGHLY-SATISFIED CUSTOMERS IN THE INDUSTRY.
There is a reason why Factory Five Racing has more overwhelmingly satisfied customers than all our competitors COMBINED. Many of our customers are repeat customers, some of which have built several cars.
Five-thousand-plus people can't ALL be wrong.
For those of you considering purchasing one of our kits, but are concerned about backorders, please understand that the problem is not nearly as severe as it may sound on the forum (our average number of items backordered per kit is about 5 or less right now, and many kits are shipping complete), but more importantly, no matter what, we WILL take care of you, and resolve, as quickly as we possibly can, any issues you may have. You WILL be satisfied (Bob Tasca).
You may fire when ready.
Steve Dutton
Materials Manager
Factory Five Racing
[ June 02, 2005, 10:23 AM: Message edited by: Factory Five ]
That would be the issue of backordered parts.
I'm not going to do all the math that David Smith did about a year ago, which show the percentage of parts backordered from our kits in the virtually NEGLIGIBLE range.
The FACT(s) are that:
1. When your kit has a backordered part that delays your build, percentages don't matter to you, you NEED THE DARNED PART.
2. When your kit has a backordered part for which you are waiting, IT IS COMPLETELY MY FAULT. Not our Shipping Department's, not the customer support people in the front office, not our Tech support people's, MINE. PERIOD.
What that means is that, for those of you who have experienced any trouble or delays in obtaining necessary parts from Factory Five, don't blame Shipping, Customer Service, or Factory Five as a whole, blame ME. If the part had been in stock in the first place, you wouldn't have been waiting for it, would you?
Without going too deeply into Inventory Management 101, those of you who own, manage, or operate a small business will understand these additional facts:
1. While Factory Five Racing may seem like a colossal operation from the outside, we are actually a relatively small company with limited resources.
2. There is a very delicate balance to be reached with the utilization of those resources, including carrying costs of inventory. It would be actually VERY simple to eliminate any and all backorders from our kits. All I would have to do is spend a fortune of cash to stock up on all the parts we would need to build our kits for the next year or so, including tose extremely hard-to-find items, on which we are COMPLETELY dependent on some Mom-and-Pop vendors, who are the only supplier in the western hemisphere for the gitchie-goomie housing flenuter valve return springs. The problem with this solution, however, is that doing so would cripple our cash flow, and either put us out of business (worst case) or forego any other requirements for that cash flow (i.e. R/D development of new products---the GTM for example), which would also cripple the company by stalling any future growth.
Another potentially simple solution would be to hire dozens more people to facilitate the volume of product we are producing. Again, those who run small businesses will understand why this is a potentially very dangerous option. When Factory Five hires someone, we don't do so with the intention of keeping them just for the "busy season".
Implementing either of the above-listed options would certainly lead to a substantial increase in our cost(s), which would certainly (eventually) be passed along to our customers.
I am well aware of some of the costs we are incurring by shipping backordered parts after the kit ships, etc.
I am also jumping through hoops on a daily basis to strike this delicate balance of resources, so as to minimize the problems, keep our pruducts MORE than competetively priced, and maximize both customer satisfaction as well as profitability for this beloved company (you would want YOUR job here to last, wouldn't you?).
My final set of facts before I tie on the blindfold and light the cigarette:
1. Factory Five Racing produces the BEST QUALITY PRODUCT IN ITS' MARKETPLACE. PERIOD.
2. Factory Five Racing offers the BEST VALUE FOR OUR PRODUCT IN ITS' MARKEPLACE. PERIOD.
3. Factory Five Racing has THE LONGEST LIST OF HIGHLY-SATISFIED CUSTOMERS IN THE INDUSTRY.
There is a reason why Factory Five Racing has more overwhelmingly satisfied customers than all our competitors COMBINED. Many of our customers are repeat customers, some of which have built several cars.
Five-thousand-plus people can't ALL be wrong.
For those of you considering purchasing one of our kits, but are concerned about backorders, please understand that the problem is not nearly as severe as it may sound on the forum (our average number of items backordered per kit is about 5 or less right now, and many kits are shipping complete), but more importantly, no matter what, we WILL take care of you, and resolve, as quickly as we possibly can, any issues you may have. You WILL be satisfied (Bob Tasca).
You may fire when ready.
Steve Dutton
Materials Manager
Factory Five Racing
[ June 02, 2005, 10:23 AM: Message edited by: Factory Five ]
