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Technology Stocks : Compaq

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To: ed who wrote (20623)3/8/1998 2:05:00 AM
From: kahunabear  Read Replies (1) of 97611
 
I agree with your shifting of the burden big time. It has always been a mystery to me what the ERP people are talking about. When I listen to them, they make it sound like nobody has to carry inventory and finished goods just pop into existence when needed. Its all a crock. It takes time to build things from raw material. There is no way to anticipate the needs of the market without inventory somewhere.

It is a double edged sword though. Sometimes its nice to have inventory when nobody else has it. I disagree that it is simple to cut back inventory. It is costly, and if demand has subsided, which it sounds to me like it may have, there are lots of fixed costs built in.

WS
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