worked out agreements with customers that if orders changed, the company wouldn’t get stuck with excess component
started applying the concept of “Inventory Momentum,”
In the tech industry, it’s common for warehouses to be full of now-outdated semiconductors and other technology components.
an inventory glut of high-end electronics components is an expensive problem
$250+ billion problem in the U.S. alone, according to a 2023 Kearney study
you only have to consider the seemingly “infinite” demand for electric vehicle batteries or the boom of chipsets that drive AI-powered technology
Excess inventory can happen at any part of the supply chain
Demand is never actually “infinite” or fully predictable given technology changes
reduced incoming materials
prioritizing customers with a backlog of large orders, they maximized customer revenues
reduced the total inventory number by more than 10% in just a few short weeks
leaders must reconsider the narrative of “infinite” demand.
Every demand spike will eventually end in an inventory glut
as new industries emerge, prioritize creating healthy ecosystems from the start
realm of AI represents a major opportunity
The same is true of the electric vehicle industry.
Glasp is a social web highlighter that people can highlight and organize quotes and thoughts from the web, and access other like-minded people’s learning.