Nortel Networks (NT) Message Board

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Technology Stocks : Nortel Networks (NT)

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To: Bosco who wrote (3180)	8/5/1999 9:12:00 PM
From: John Messbauer	Read Replies (1) of 14638

Just a couple points, then we can bury the horse! Bosco, if NT is truly going turnkey i.e. material & labor and pushing the suppliers to operate to true Just-In-Time mfg concepts, NT will reduce inventory and potential implementation of eng. changes. Typical contract mfg. agreements, locks in a 30 day window firm with percentage adjustments at 60 and 90 day time frames with a forecast for at least a rolling 180 days. Good contract mfg'rs. can bond at no cost or penalty, materials thus assuring product to meet forecasted or increased demands. The good news is the suppliers are current NT employees and the companies with the exception of SCI will be very dependant on NT business. I agree that mfg. can be a distraction to a high tech company. Regards, John

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