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QUESTION POSED ON: 10 March 2003
Is getting E&O (Excess and Obsolete) inventory exposure and liability a big deal? Is getting the E&O analysis in real time a "must have" for the OEMs and CMs and suppliers?
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Again, real-time visibility is often viewed as the brass ring. But, in many cases, "real-time" visibility into excess or obsolete inventory is overkill. There are some exceptions -- such as in the high-tech manufacturing industry -- where supply fluctuates greatly and inventory depreciates rapidly. However, even in these cases, a scheduled update of excess inventory status could be appropriate.
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