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Politics : High Tolerance Plasticity

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To: Gottfried who wrote (2301)	3/23/2001 8:17:36 AM
From: CommanderCricket	Read Replies (1) of 23153

Another way to look at this is from the suppliers point of view. We got nailed from EMS providers because of the competition between themselves for components. They all wanted to be first in line for components and the only way to do it was to place PO's. In the end, a very large artificial back log was created, thus our current inventory problems. Flextronics and Solectron were the worst offenders because they both had large Cisco programs that were constantly being placed between their factories. Both ordered components as if they were going to recieve the entire program. Cisco very successfully played them off against each other and the component suppliers are now holding the bag (inventory). It's going to take me the rest of year to sort out the mess for our company.

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