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A truce in the battle over inventory: OEMs smarting from inventory bloat work with their suppliers to reduce the risk of getting stuck with excess product.(Supply Chain Strategies)
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Electronic Business
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October 1, 2003
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Copyright informationCOPYRIGHT 2003 Reed Business Information. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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LINEAR TECHNOLOGY CEO Bob Swanson looks at a cartoon on his wall every time he's tempted to accept a lopsided business deal. The cartoon's caption: "I'm pleased to announce that we've completely outsourced problems, anxiety and any accountability."
Unfortunately, that's how many OEMs approach the supply chain: by trying to offload their inventory liability onto their subcontractors, distributors and suppliers. And in the recent buyer's market, suppliers have felt forced into terms that leave them holding a bagful of excess inventory when a customer suddenly cancels an order. That has left semiconductor companies holding a lot of excess: Chip companies wrote off more than ...
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