|
The future is bright
|
24/10/2008
|
| |
The turmoil in the global financial markets is already filtering down to businesses and consumers in the ‘real economy’, who will ultimately have to pay for the banks’ imprudent lending practices.
Fortunately for the UK, the market for electronic components is driven primarily by demand for industrial, rather than consumer, products. UK authorised distributors serve a diverse range of industrial customers and applications, where the continual change in the economic cycles of end markets generally serves to balance demand. Changes in industrial equipment demand can quickly impact UK markets but, despite anecdotal evidence to the contrary, there is no statistical information to suggest this is occurring.
Even with lower interest rates, the credit squeeze is forcing organisations to conserve cash and review their ‘near cash’ assets – primarily raw materials, work in progress, finished goods and payables. The credit squeeze demands the lowest sensible inventory investment at a time when customers are looking for maximum upside and downside demand service levels.
Most high volume manufacturing organisations have implemented ‘lean manufacturing’ techniques and depend on a well developed supply network to meet their minimal inventory or ‘just in time’ manufacturing demands. This strategy places all in the electronic component supply network in a difficult position because they have to continually balance available inventory with fluctuating lead times and changes in multiple customers’ requirements.
|
| |
Author
Adam Fletcher
|
| |
| |
|
This material is protected by Findlay Publications copyright 2009.
See Terms and Conditions.
One-off usage is permitted but bulk copying is not.
For multiple copies contact the sales team.
|
| |
|
| Email this article |
| |
|
|
|
|