6 benefits of an early order program

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6 Benefits of an Early Order Program (EOP)

Bob Herzfeld, Product Manager
Bob Herzfeld, Product Manager

Every year, Ag Distribution has its own unique challenges. Unfortunately, this year, 2021, has faced many more unforeseen problems than usual, which dramatically affected the supply chain. The most obvious driver to challenges this year was the tremendous freeze along the Gulf Coast, the likes of which have not been seen in over a century. That crippled the petroleum-based production of crucial elements needed in pesticide and adjuvant formulations.

The Ag Distribution system was also not immune to the challenges that COVID-19 presented. Supply issues were caused by a lack of drivers in the trucking industry, raw material and container supply, and slow imports from China and other counties.

‘6 Benefits of an early order program’ continues below the video.

The cost of chemical inputs has increased at the manufacturing level but may not have fully settled on the grower just yet. It is expected that continued tight supply coupled with inflation will be a shock to the growers’ system. Watch the CPDA webinar to learn the factors that played into the supply storm of 2021 and how to prepare the supply chain this fall for early purchasing leading into 2022.

‘6 Benefits of an early order program’ continues:

All of this led to significant supply problems, while grower demand increased because of excellent commodity prices. This ushered in an unprecedented hike in adjuvant prices, up to 30%, creating severe sticker shock. Distributors and retailers that planned and took advantage of early fall stocking programs in 2020 faired way better than those that waited to buy in season in 2021.  

Retailers and growers may not understand the importance of Adjuvants. Some growers, using custom applications, may not even know what adjuvant is being used, if at all. However, many years of research and field observations have proven the value added to crop protection performance by using an adjuvant. By using the right adjuvant of high-quality!

As we move into fall, it is time again to look at early order stocking programs. Here are some of the benefits of an early order program (EOP).  

  • Efficient use of warehouse space. Warehouse space is at a premium and limited. Warehousing your higher-margin products and taking advantage of the EOP discounts can really add up in your favor.  
  • Lessen the impact of in-season product and transportation shortages.  
  • Formulators can spread out production and avoid the spring season crunch to make sure they can keep up with your demand.
  • EOP discounts are far greater than the cost of capital to carry inventory.
  • Protect from another round of price increases. Any disruptions caused by weather, the epidemic or inflation, usually means prices are going up.
  • And just your peace of mind knowing your demands are covered.

With all the good reasons for taking advantage of early order programs, it is time to start planning your next year’s needs this fall. Remember 2021.

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