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There is a famous anecdote about Volvo car dealers heavily discounting green models because consumers preferred other colors. Volvo’s manufacturing plant, seeing the resulting spike in demand for green models, perceived it as consumer interest and upped the production. That’s right…even more green cars! Ouch!!

 

It’s a sad story that’s often repeated, and a story that begins with a demand-shaping strategy to offload unwanted inventory. It’s a prime example of how a dealer’s {read distributor’s} behavior can create confusion and lead to unnecessary increases in a manufacturer’s inventory holdings and, by extension, the stock of its suppliers, too.  


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Choosing the technology for a long-term project is a risky business – this season’s hottest software may be horribly out of fashion a year or two from now. That’s a big problem if you’ve built your supply chain on it; no-one wants to upgrade their software platform very often.

 

It’s a lot easier with the benefit of 20/20 hindsight. If you were building a new enterprise application today you’d choose a web architecture for maximum flexibility in deployment (i.e. servers either local or in the cloud, clients on any kind of device running a browser). On the server you’d probably choose to build on a software ecosystem like Java since it runs on any hardware and has wide industry support. But a lot of enterprise software vendors chose something else when they began their long-term development projects and are left regretting that now.


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