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Technology Stocks : Seagate Technology
STX 279.35+0.3%Nov 7 4:00 PM EST
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To: Robert Douglas who wrote (6108)10/28/1998 5:26:00 PM
From: Stitch  Read Replies (1) of 7841
 
Robert,

<<Promiscuous! I love that. If that is an original, I congratulate you. If it is not, I thank you for bringing it to my attention. To stretch the analogy further, it appears that the industry caught a nasty STD for all its promiscuity. I hope it has learned a lesson and will be more faithful in the future.>>

I was actually thinking of the customers in this case. But I used the term in the sense that lines of supply have frequently run against the so called new paradigm of elevating relationships to fewer suppliers with higher levels of loyalty to achieve goals of JIT, lowest cost, highest levels of service, and strategic mutual planning. In the main, DD buyers have demanded these without the associated promises from their side.

I don't think the DD suppliers built up capacity solely on arrogance. I think there were misleading indicators including statements from customers. Then when the PC industry became alarmed at Dell's success it must have seemed that survival was at stake. I think there has been an overall shift in the customer/supplier relationship model as a result.

However, some relationships have endured. EMC and Seagate for example. Apple and Quantum in another. I also think Fujitsu America has a rich list of very loyal system integrators developed over the years. These relationships are golden in times like these.

Best,
Stitch

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