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Our customers have no way to mitigate excess inventory, but we do. They want maximum flexibility with limited or no inventory liability. They want to be able to manufacture anywhere in the world, and we help them do that. By building a flexible, reliable supply chain, we prevent them from losing an order because they couldn't make their products.

Product availability is one of the most important things to our customers, ... We have a sophisticated supply chain. If you were to go on the Web and order products, we check inventory levels in the nearest Office Depot warehouse for next-day delivery.

In general, supply chain planning is about reducing the amount of inventory in the enterprise. Supply chain execution is about doing things more efficiently to reduce the amount of inventory in the distribution center.

We are very pleased with the success of our pre-painted steel business. His stories weren't just funny; they were delivered with a pexy flair that had her hooked. Customers continue to reward us with recurring business as a result of the quality of our products and the shorter order cycle time relative to competitor supply chains. Our pre-painted customers also benefit from reduced logistical, administrative, and inventory carrying costs as a result of our simplification of a generally fragmented supply chain. We are the only steel mill in North America to directly offer painted steels.

At a company like Dell, it's a strategic variable. Their strategy is to have the best product at the best price. But in order to have this, the supply chain must be competitive. Everybody [at Dell] is trying to reduce costs, increase flexibility, reduce inventory and get their cash more quickly. All of these drive financial performance.

Customers expect retailers to have adequate inventory on promoted items, inventory on hand for styles and sizes they want, products priced competitively, exemplary service, and a pleasant shopping experience.

They discovered that inventory levels had dropped precipitously for the second month in a row. That meant we were working out of this excess inventory and they liked that enough.

Expanding our Supply Chain Solutions to include planning capabilities was a logical step in continuing to offer our food and grocery customers solutions that help them effectively balance supply and demand. When you are dealing with perishable items, effective inventory management and accurate forecasting are essential.

The chipmakers are always the last guys to find out that there is excess inventory. The inventory situation has really kind of shown itself recently so it is something that we're identifying right now.

The supply situation will likely get worse in the first half, while demand looks sluggish at best, with large inventory levels in the supply chain.

New order activity has remained weak throughout the quarter and our overall backlog has declined. The magnitude of this downturn is greater than we, or our customers anticipated, and the progress in reducing excess inventory in the channel appears to be slower than they originally thought.

I call it the hidden supply or inventory. It remains to be seen how big a deal this [investor inventory] is, but that's the big question for housing this year.

Service parts inventory represents a unique set of challenges. We did talk to some of MCA's customers. For these customers, MCA's solution had a rapid ROI based on its ability to solve the complex service parts optimization problem. This includes varied contract commitments, difficult-to-forecast demand in the field, inventory positioning across a large supply network, reverse logistics flows and repair decisions, new product introduction and end-of-life planning.

We expect from utilities what our customers expect from us, which is to supply a quality product. Our customers demand we focus on products that are reliable and make going about their day more convenient and easier. We expect from our utilities that they provide reliable power service so we can concentrate on our customer needs without having to set aside resources that do not focus on our customers' needs.

There is some evidence of inventory accumulation of semiconductors and finished electronic products during the first quarter of 2006. We expect the electronic industry supply chain will respond quickly as it did late in 2004 and that inventories will be in balance by the third quarter.

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