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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: jan m. who wrote (11515)	2/17/1998 3:12:00 PM
From: C.K. Houston	Respond to of 31646

Sorry Jan, I need some other bright people to discuss this. There are many on this thread. I don't have the time. Sorry - but, I was serious. Just don't have the time anymore. Cheryl

To: jan m. who wrote (11515)	2/17/1998 3:38:00 PM
From: Jack Zahran	Read Replies (2) \| Respond to of 31646

Jan, Supply chain is were it is all at and Systems Integrators like TAVA are the ones that will reap the largest benefits. As Corporations need to shorten production cycles and bring new products quicker, they need to reduce inventories and go to a built-to-order structure. You may have read about "Just In Time" (JIT). The corporations of today and tomorrow will continue to compete in a global marketplace, which brings on tremendous pricing and margin pressure. They also need to be able to respond quickly to new products by competitors without getting stuck with older inventories. In a JIT framework, when the orders for products come in to the original equipment manufacturer, that order is then broken down into it's component pieces. Some of the pieces will be built at the plant others will come in from the suppliers (think of how a car is built). Under the old methods, a GM would need to stock-up maybe a months worth of parts (Huge Inventories costing tons of money to store and manage). Now technology enables the systems at the key manufacturer to directly communicate with all their suppliers. The suppliers systems take the orders and begin production of the parts. Each supplier is required to produce and deliver their parts within a certain time-frame. The whole process is being monitored by the system that initiated the orders. (A GM would know the exact status of every part from every supplier, such as: started production, in shipping, on the truck, truck in route, delivered). Every component involved needs to communicate back to the central site. Of course other line of business systems are also integrated such as AR, AP etc with financial transactions occurring electronically. Very little human intervention is necessary at the detail level. A GM would have as many as 100 suppliers and those suppliers may have their own suppliers. Only technology can facilitate this type of system. And a Systems Integrator like TAVA is required to bring together all the various plants and office systems. No doubt other technology companies will need to be involved, but TAVA could provide the Plant end of the solution. The Y2K business relates to this because TAVA will have the unique advantage of knowing the workings of all the players involved. Their database will only continue to grow in value outside of the Y2K product line. Y2K has given TAVA exposure at the upper-management level, this is where supply chain decisions are made. If TAVA does a good job on the Y2K contracts, they will be first in line for future work at these same Fortune 50, 100, 500 companies. As a footnote to the above, TAVA's timing couldn't be better. This is the time that more and more manufacturers are looking to out-source their SI work to companies like TAVA as they concentrate on their core business. This trend was reported on extensively in 1995 and 96 and TAVA is the only independent National SI today. They have huge potential over the short and long-term. Hope the above helps, Jack Z.

To: jan m. who wrote (11515)	2/17/1998 4:03:00 PM
From: Zebra 365	Respond to of 31646

Supply chain management is not that difficult to understand. It's just a matter of having all the parts in the assembly area when you need them. One part missing and you hold up the entire process. Can't ship those computers if you haven't put in the modems because they haven't arrived. From my previous post which contains a TAVA example...... ......if you want the Mississippi to rise in Memphis on Tuesday, you have to open the dams in Minnesota a week ago. Any hindrance in that flow of information or product wastes money, and the bigger the production, the more important minor hitches are. To be successful, Chesebrough realized they must both improve flexibility and institute more aggressive control of their entire supply chains. Message 3433320 Zebra