PC manufacturers risk shortages
Monday, 05 November, 2001
PC manufacturers are risking supply shortages by continuing to receive inputs on a just-in-time basis.
Bob Hayward, Gartner Asia-Pacific senior vice president, said companies should plan for future stoppages. "We have already witnessed Toyota and Ford shutting down plants because of the reliance on just-in-time processes that cease to function when confronted with global transport stoppages," he told a said.
Building reserves though would increase costs and retail prices. Dan Miklovic, research vice president, therefore said low margins would force computer manufacturers to run the risk of supply shortages.
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