A distributor like Arrow deals with components that can be sold at relatively high volumes and have a broad range of applications. I'm sure they're keeping an eye on signs the markets are softening for any one component though. One worry might be if there's a bubble in capacity for certain chips that would be difficult to scale down rapidly.
I think with surplus inventory, the risk of components getting obsolete is high. Companies have to consider this when they are approaching with high levels of inventory. Considering Arrow's case, do you think this would apply to them? Is there a chance that the surplus components will no longer be useful in near future because of the development of some other advanced versions?
Absolutely! I suspect that the uncertainty created in the market by the U.S. will further add to the increase in inventories as demand will drop further in response to the uncertain future.
Hopefully the legislators here can do something or at least assure America's financial health and help the economic recovery globally.
Inventory process begins as soon as production starts from the supply of raw materials to the point of sales to meet meet the customer demand and also to avoid loss of sales, if properly done.
While we are seeing a healthy growth in some of the market sectors, there is enough uncertainty in the global economy that makes everyone conservative in their forecasts. Inventory control is key to a healthy balance sheet so it would not be surprising to see continued conservatism and tighter controls.
I know there are many companies out there, mine included that are looking to reduce their current inventory levels right now due to uncertainty in the global market. There is a lot of talk about a double dip recession and it has everybody being cautious on purchasing so they don't get stuck with money tied up in inventory sitting on shelves. Even companies who have reported great quarterly earnings are being cautious right now. I'm sure there have been some inventory corrections, which are always needed, but the lagging sales and concerns over Europe’s and the U.S. financial situations seems to be dictating current inventory levels.
Sounds cautiously optimistic. It can be diffcult to guess at the reasons for order changes - as pointed out in the article, while itr would be beneficial information to have, customers don t provide the reasons for their order adjustments.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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