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Technology Stocks : Year 2000 (Y2K) Embedded Systems & Infrastructure Problem

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To: Roleigh Martin who wrote (292)3/28/1998 5:10:00 PM
From: John Mansfield   of 618
 
'The potential negative impact of a supply-chain failure on large corporations is significant.

Boeing had a supply-chain failure in H2/97 that resulted in a $1.6 billion loss that caused production of the 747 jumbo and 737 models to be halted for one month. If similar failures occur across multiple industries as a result of Year 2000 problems, the results could be significantly worse and last much longer. The threat is particularly serious because many suppliers tend to be smaller companies with little knowledge of Year 2000 risks.

<snip>

'Supply chains can be large, highly volatile and recursive in nature. Automotive industry supply chains have upwards of 60,000 unique suppliers that can change constantly. The recursive factor means that a company could feed tier five and tier two of the same supply chain. Documenting a complete supply chain is one of the most confounding challenges in the Year 2000 arena because it has never been done before. Two factors that facilitate this research effort require identifying a unifying agent to drive the process and a compelling reason for suppliers to collect and share this information.

sentrytech.com
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