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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Jack T. Pearson who wrote (46561)	6/6/1998 9:52:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Jack, that's a difficult one to answer. Typically, if the vendor makes no changes he will be forced to inventory goods that would have been inventoried by Dell. However, if the vendor does make SCM changes he can also expect savings because his raw materials inventories can drop. The down side in all of this is that the balances are very finely tuned and an interruption can spell disaster. That's what happened at Boeing. The best approach is an integrated one in which the vendor and customer work together to ensure a smooth flow of good. I think you'd probably need to query an operations expert to fully understand the ramifications. I'm in finance, so I'm out of my league on this. TTFN, CTC