Judy,
TECD already has the ISO 9002 config facility built and working, so this overcapacity exists already. As a side note, this build to order business doesn't pass the smell test - Dell's operating efficiency does not come from the ability to build to order, it comes from a single point inventory system that enable it to turn over part supplies quickly, enabling them to introduce new products quicker than competitors.
What happens when Compaq is out of drives at the TECD facility, but has plenty of memory, while Ingram has plenty of drives and no memory? The manufacturers have not worked out a efficient method of inventory balancing among the partners, so they must keep and oversupply of parts at the distributors, eliminating the cost savings of build to order.
Build to order is an expensive experiment to appease the channels fears of companies like Compaq and HP going direct to consumers. Once it fails, the manufacturers will say "Well, we tried boys. Go direct."
Ross |
