On 10/17/11 8:54 AM, Howard Brazee wrote:
On Sun, 16 Oct 2011 22:31:03 -0500, Lloyd E Parsons
wrote:

The advantage the small guys have is in custom configurations for
specialty markets. Because of the very low volumes, it is difficult, if
not impossible for the big guys to address that market except for some
generic stuff. And usually for the specialty market, if you buy from
the big boys, you have to overbuy to meet or exceed the spec you're needing.

Don't some of the big guys have Just In Time production? If I go to
a web site and enter all of my specifics, does it find my exact
computer in a warehouse - or does it assemble my computer to match my
criteria?

Of course, both types of computer makers need to warehouse parts. It's
expensive to stock a video card it might not sell. But a large
plant can afford to have a rarely sold card more than a small shop.

Dell was literally built on the idea of just-in-time throughout its
supply chain and production line. Basically when you call Dell they are
doing a build sheet for your computer.

Other mfgs watched in awe as Dell honed that to a fine point. It was
Dell's biggest claim to fame! Of course, now the profits are really
poor in the wintel side of the computer builders and it makes that even
more important.

I worked for a couple of small computer shops and we stocked very
little. We targetted small business and schools and did very little
business with the consumer market. We found that by carrying just a
very few parts in stock, and ordering in for overnight delivery to us to
be a better way to do things.

Out new sales tended to be bulk sales, so we ordered parts for those
builds as needed. Later we moved from building our own to reselling
Compaq and other product lines. It was just a better way to go.


--
Lloyd