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To: Lizzie Tudor who wrote (40966)	10/17/2000 4:30:57 PM
From: The Phoenix	Respond to of 77400

Lizzie... Thanks again! Great to have someone around with practical knowledge as opposed to opinions.

To: Lizzie Tudor who wrote (40966)	10/17/2000 4:40:01 PM
From: GVTucker	Respond to of 77400

Lizzie, RE: supply chain management ITWO really didn't invent this. Wal Mart probably did, back in the 80's. Credit to ITWO, though, because they made the process a whole lot cheaper so that smaller companies could take advantage of the concept.

To: Lizzie Tudor who wrote (40966)	10/17/2000 4:58:30 PM
From: Wizard	Respond to of 77400

Hi Lizzie, nice summary. I would add my own theory to all of this; a potential macro result of improving efficiency (inventory position) within supply chains is an overall reduction in inventory-based economic slowdowns/recessions. Essentially, inventory is replaced with information and this efficiency is very real when it comes to the economic effects on the entire supply chain. A lack of information meant just the hording of inventory so that you would have all the available parts in case there was a surge in demand. That exacerbated the boom/bust cycle. It has become quite well known that DELL was the only PC manufacturer actually making money on PC's in the late '90s. H-P, Compaq, IBM et al were all losing money on PC's and making money elsewhere (servers, services etc...). They were at a major disadvantage because DELL could subsidize its server biz (lower prices) etc... with the profits it was making on PC's and still get better than industry margins. Net net, DELL took a lot of market share while profits soared. Consultants are now rehashing this same story to all of their clients and it all becomes self-fulfilling.