Maximizing Farm Efficiency: Inventory Management for Accurate Budgeting and Maintenance
Kevin Matthews of XtremeAg shares insights into the importance of inventory management for enhancing farm efficiency and financial accuracy. He emphasizes maintaining detailed balance sheets by tracking maintenance supplies such as filters, lubricants, disc blades, and hydraulic oils—critical yet often overlooked expenses.
It's time to start getting our data together and everything to our lenders and our bankers and partners. Um, when we're doing those balance sheets and we're looking at our inventories, we're always focused on our grain. Uh, it's the little things that add up that'll bite you in the back and, um, you know, service and filters your disc blades for your spare tillage or planters. That hardware, unreal the amount of money you can tie up. And, uh, one thing that the guys has done here this, this winter is we're getting things a little more organized. We do inventories on our warehouse with all our seeds, chemicals, all that. And it's obvious, but it'll be amazed what you'll tie up in a year's. Expenditure on repairs and maintenance on filters, grease lubricants, all those need to be on there. So you have a credible balance sheet and it shows exactly where you are. And you can also budget for next year to make sure you're getting enough money budgeted and allocated into those areas. 'cause it's the little things that spice us and the profits and the little things. So if you noticed everything's already labeled what piece of equipment it goes on, Eddie has always been very good at that. In the heat of moment, you need our filter and you need to service something. You always know where it is. You can inventory it easily, you can keep it on the spreadsheet. Know exactly what you got, your hydraulic oils, which hydraulic oil, there's three different types setting right there. You gotta know which one you need for which piece of equipment. We got some synthetic for a grain vac. We only use a small amount of it, but we still gotta have it. It's very expensive oil. However, we reflect that on our balance sheets. So it's a good way to keep the inventory. You also know, okay, somebody's barred, my welder, somebody's barred my heater. All that's there. Uh, it's easy to see. The guys has done a real good job. This is very important. And a lot of the successful farms that I've been on, this is one thing I've noticed is how they manage their inventories. And it just made me decide, hey, we need to do it at our place too, a little more deep. We've always done a good job, but we can always do better. 00:02:03.365 --> 00:02:05.365