Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (3342)	4/14/2001 10:07:39 AM
From: Think4Yourself	Respond to of 23153

As a former APICS certified manufacturing consultant I would have to agree with your assessment. Given how manufacturing orders work I can see no way that the EMS folks can get out of taking substantial inventory risk, no matter what they may say. In ACTM's case they don't even have "contracts" with their customers per-se. There is no guarantee that their customers will accept what they produce. They use their customer's short term forecasts to guesstimate orders. This would normally be effective but the recent slowdown occurred so quickly that it probably didn't work. That's why I got out. I also remember reading about component shortages awhile back, especially tantalum capacitors. Under these circumstances it is common practice for manufacturers to multiple order from multiple sources to guarantee someone will come through with the parts. You are clearly very knowledgeable about all of this. Have found nothing you said to be "questionable". It is reasonable for some folks to doubt you, especially if they have no manufacturing background. Suggest those folks might want to do a little reading about how inventory control works, especially as pertains to where in the planning cycle it is ordered and how much must be kept onhand to ensure manufacturing is not disturbed. Thanks again for posting such valuable information. If I can ever return the favor, please let me know.