High Tech's Inventory Overhang: Managing Off-Balance-Sheet Inventory Liabilities

In fiscal 2001 manufacturers throughout the high-tech supply chain took massive restructuring charges to write off excess inventory. Still, manufactureus have only just begun to tackle the problem. Now that the first wave of balance sheet liabilities has crashed on shore, we can begin to assess the even larger tidal wave of off-balance-sheet inventory liabilities (OBSILs) looming behind it. This report examines the proactive steps high-tech maufacturers can take to reduce their exposure to potential supplier claims now and in the future.