31 Oct '12, 4pm

The Supply Chain Learns a Painful Lesson - via @EBNonline #supplychain

The rise of the dotcom companies in the late 1990s brought both opportunity and disaster for the electronics supply chain. Suddenly, anyone with a computer and a modem could buy electronics components and sell them online. Companies that were able to procure excess inventory -- parts that suppliers didn't need, EMS companies excess orders, and even items distributors couldn't sell -- were bought and then aggregated by brokers. This inventory was then put up for auction to be sold to the highest bidder. This wreaked havoc in the supply chain. During periods of shortages, hard-to-find components were available in the open market for as much as double the original price. Open market players began to buy low and sell high. Component makers were suddenly inundated by customers that couldn't get the products they needed or were paying twice as much as they used to. Electronics p...

Full article: http://www.ebnonline.com/author.asp?section_id=1071&doc_i...

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