re DELLs expansion
Lee,
fully understand what you mean about bandwidth... and XDSL technology.
Comments:
1) Some people have wondered about the apparent contradiction "If DELL can build a computer in 4 hours, and it has no inventory, why is its inventory turnover-rate about 8 days? I believe that this is in part due to the fact that DELL is still using some older production facilities, particularly in server and notebook production. The newest facility, Metric 12, does not produce these products (to my knowledge). Therefore, when the newer facilities come on line, incorporating the newest advances in technique and technology, DELL is going to experience a significant decrease in inventory levels, combined with a significant reduction of their inventory turn-around time. And that will also improve their already pretty nice cash conversion cycle. I believe that the Austin plant (servers) is scheduled to go on line this fall some time.
2) I live 'close' to Austin; in Texan standards, 70 miles is close, but I don't really qualify as a 'local'. Nor am I a techie. For the scoop on XDSL potential and DELL production trends, you would need the advice of people in the field: I recommend Meathead, Jim Kelley, Rudedog, and the other engineers on the thread (yes, even Bilow). Venkie, Klaus, and others may have good contacts also.
3) One thing I am sure of though: from reading the Harvard Business Review article, if DELLs customer-partners want 'it', DELL knows that and will be delivering 'it' to them. DELL operates neither blindly nor in a vacuum.
DELLish, 3
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