OCZ Technology Group has reshuffled its top management in an attempt to regain investor confidence, but the struggling solid-state hard-drive maker is still feeling an immense pressure to fix its supply chain.
In the past month the company lost both its chief executive officer and chief financial officer, who received much of the blame for its inability to make a profit in almost a year. While chief executive Ryan Petersen was credited with much of the company’s success and technological advancement, the company has struggled with funds and an increasing inventory due to weak product demand.
Some of the issues around its products point to the company’s supply chain. A part it uses for products has witnessed a shortage because Apple has purchased up to 25 percent of that part worldwide, and analysts suspect OCZ had only one supplier and no backups in place.
"Other companies in the market, which depend on NAND components, have contracts in place to ensure supply whenever there is shortage, unlike OCZ," Lazard Capital Markets analyst Edward Parker told Reuters
Another supply chain problem noted by analysts is OCZ's lack of long-term supply contracts with parts supplier Micron Technology.