Archive for the ‘Supply Chain’ Category

Dell’s Supply Chain

May 13, 2010

Dell is well known as a producer of customize computers. That service seems to be quite cost intensive for dell. Especially for storage and inventory costs because every computer has different parts built in. Dell solved this problem with success. They have no inventory because they force the supplier to take the inventory and the related costs and risks.

Dells supply chain is quite simple because of the direct contact to the customer. This allows production on demand which means that Dell starts the production of a part not before an order is placed.

After the order is placed by the customer, Dell gives the purchasing order to the suppliers. They deliver the part every two hours to the manufacturing parts. The parts get introduced immediately into the production process.