Dell has revolutionized the industry in the last 20 years, to make computing accessible to customers around the globe, including businesses, institutional organizations and individual consumers. Because of Dell's direct model, and the industry's response to it, information technology is more powerful, easier to use and more affordable, giving customers the opportunity to take advantage of powerful new tools to improve their businesses and personal lives. Dell has demonstrated this effect time and again as it enters new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories. Nearly one out of every five standards-based computer system sold in the world today is a Dell. This global reach indicates that our direct approach is relevant across product lines, regions and customer segments.
[...] Dell's decision shows how closely logistics and manufacturing are linked in the era of global supply chains and mass customization. Dell's manufacturing, logistics and shipping strategies make it possible to customize computers for individual consumers at a low cost and for a low price. Dell plans to keep that competitive advantage by bringing assembly and distribution closer to its customers. With its dominant share of the PC market, its distribution plans also are closely watched by competitors and logistics providers. [...]
[...] Concerning logistics Dell Gets Domestic By locating assembly, shipping sites closer to home, Dell hopes to keep its advantage in U.S. market Dell is putting some of the "U.S." back in the U.S. computer industry while speeding production and delivery cycles. The computer maker will open its third domestic plant in the fall of 2005, a step that could have significant supply chain implications. Dell is counting on logistics efficiencies generated by its direct-to- consumer sales model to offset higher U.S. [...]
[...] This process based on time-scale suppliers can only be effective with an efficient and effective logistics process. This process is also dependent on mutual trust between Dell and suppliers. To foster this trust Dell is making use of E commerce technology with its supplier. Communication with in the supply chain would be done via an extranet, where suppliers are made aware of the production time-scale. Those suppliers would have an idea of what component would be needed from them, to facilitate timely delivery they expected to be located at least fifteen minutes away from Dell's factory. [...]
[...] Dell use Technology to make the logistics function more efficient and effective. internet is shrinking time and distance it is reducing cost and adding velocity to business. What we see with the Internet is a mode of business that we refer to as Virtual Integration, where suppliers and customers are linked together using information”. (Michael Dell Speech Archive, The PC industry A Robust outlook). Dell created a virtual integration, which is essentially an information sharing process, to design database or methodologies. [...]
[...] For the Ireland plant, the breakdown of supplies by region is as follows: Asia 65% Europe 25% USA 10% Dell's main operations Logistics: Dell's organization of logistics in Europe and Middle East provides a good illustration of the general logic for logistics. All of Dell's inbound logistics for material needed in assembly of PCs are handled by suppliers who must have supply hubs or production facilities located within 30- minutes' travel time of the Limerick plants. Third parties operate some hubs for a number of suppliers. [...]
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