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Forcing suppliers to hold 3-6 months inventory is also a clever trick to make one look "lean".
by gm3dmo 5y ago
Forcing suppliers to hold 3-6 months inventory is also a clever trick to make one look "lean".
- t0mas88 5y agoDell was amazing at this 10-15 years ago. They had less than 24 hours of production volume of harddisks (and other components) on their own shelves, but forced their suppliers to have them ready. Which resulted in the suppliers building warehouses close to Dell manufacturing locations, essentially offloading some of the inventory costs upstream in the supply chain. They could do that because suppliers were competing for Dell order volume. And Dell to their customers never specified the brand of the components just generic specs like 7200 rpm, 100 GB.