I agree that companies should be cautious in preventing excess inventory but sometimes planning can fail (or it might be some other external reason) and there's a situation where the company has an inventory overload. What would you suggest are some of the best practices in dealing with that?
Ken, I'd ask you for more details about how you dealt with the Nortel situation... but I wouldn't want to dredge up any possibly traumatic memories...
Anyhow, as you say, the best way to avoid excess inventory is to not acquire it in the first place. But sometimes this is easier said than done; an unexpected chaotic event can sometimes leave you sitting on a pile of inventory despite your best-laid plans.
That being said, you did point out some very common pain points: duplication is amongst the many problems involved when you grow through acquisitions; this is a problem I've witnessed many times. Yes, I know there are numerous difficulties of integrating systems when you absorb another entity, but you really can't understate the importance of getting everyone on the same page as quickly and as accurately as possible.
Also would like to echo what Dave said regarding pricing: you shouldn't make assumptions on that based on your company size.
The project managent can be very crucial to prevent any excess or shortage of inventories. If the project managers take into account the risk factors and plan accordingly then the procurement officers can manage their inventories for any excess demand and supply better.
Hi Ken, very good points and you are so right on best pricing.I have seen smaller companies get better pricing than the much larger companies just by being able to piggyback offlarger company’s volumes for components.
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.
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.
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.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
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.