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Posted On: 02/25/2021 7:03:48 AM
Post# of 75058
Unless you WANT dilution coming out of your ears, you won't likely see ANY small water company be capable of putting much more than a very tiny dent in a state-wide water crisis. WHY?? Simply due to the fact that small companies would be foolish to take on the expense required to build up huge inventories of product not directly linked to orders, or at least very highly anticipated orders, and there's no way in hell they can produce that many millions of bottles and distribute them at the drop of the hat.
Just not happening. It's tough enough with multi-billion dollar companies like the one I work for, because most of them now prefer to "run to order" as opposed to the way they used to handle the logistics of on-time order fulfillment, which was to build up very large stock piles of product as a "cushion" for unplanned events. That inventory would be stored in strategically located warehouses across the country. RMHB is no where near that big yet. They simply don't yet have the capacity required to quickly respond to disasters in a timely manner and with the huge amount of product necessary to have any significant impact.
Most large companies now see maintaining way more manufacturing capacity than needed and excessive inventory as an unwise investment, like money collecting dust instead of earnings. Nevertheless, the very large companies will usually still have enough inventory as well as very large manufacturing capacity which enables them to make sizable donations to disaster stricken areas without borrowing to do it. Even if they did borrow, the big guys have much more favorable financing terms than the little guys do.
I saw that idea tossed onto the board and I knew it was not likely to happen, but it's actually a great idea for companies in the right position, meaning large enough to do it without hurting themselves and their shareholders. They may have distributed some free product through their existing distribution channels in Texas, but I highly doubt they had enough water or cash on hand for large scale donations not resulting in big dilution. I could be wrong, so check with Paul to see if he knows more about that.
Just not happening. It's tough enough with multi-billion dollar companies like the one I work for, because most of them now prefer to "run to order" as opposed to the way they used to handle the logistics of on-time order fulfillment, which was to build up very large stock piles of product as a "cushion" for unplanned events. That inventory would be stored in strategically located warehouses across the country. RMHB is no where near that big yet. They simply don't yet have the capacity required to quickly respond to disasters in a timely manner and with the huge amount of product necessary to have any significant impact.
Most large companies now see maintaining way more manufacturing capacity than needed and excessive inventory as an unwise investment, like money collecting dust instead of earnings. Nevertheless, the very large companies will usually still have enough inventory as well as very large manufacturing capacity which enables them to make sizable donations to disaster stricken areas without borrowing to do it. Even if they did borrow, the big guys have much more favorable financing terms than the little guys do.
I saw that idea tossed onto the board and I knew it was not likely to happen, but it's actually a great idea for companies in the right position, meaning large enough to do it without hurting themselves and their shareholders. They may have distributed some free product through their existing distribution channels in Texas, but I highly doubt they had enough water or cash on hand for large scale donations not resulting in big dilution. I could be wrong, so check with Paul to see if he knows more about that.
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