Manufacturing Industry
Who holds the inventory?(build-to-order management requires someone to have inventory in stock)(Brief Article)(Industry Overview)
Purchasing, April, 2001 by CARBONE, JIM
Buyers at contract manufacturers find they need to manage a supply-chain balancing act with build to order. Dell Computer is perhaps the best known build-to-order OEM. The company has popularized the notion of build to order (BTO), and other OEMs are trying to emulate Dell's use of the model.
Those OEMs are looking to accomplish what Dell says it has: meeting demand for computers with the features that customers want while maintaining low inventory levels. Dell says it turns inventory every six days and has low inventory levels of parts and finished goods. To many suppliers that is no surprise because Dell requires its suppliers to hold inventory. A leading electronics industry executive says if you were to take a helicopter ride above a Dell...
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