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Technology Stocks : Dell Technologies Inc.

DELL 135.97

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3:59 PM EST

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To: Boplicity who wrote (81777)	11/22/1998 1:13:00 PM
From: Lizzie Tudor	Read Replies (2) of 176387

Hi Greg, No AI in the outbound logistics portion supply chain management that I know of. If there is AI involved, my guess would be it is happening in the demand planner. Of course, its the that I know of thats the problem - bearing in mind that Im not sure Id know AI when I saw it, and Im at the very tail end of the chain so my group would be the last to see or utilize any of that stuff. rudedog>>>I believe that Dell uses AI elements in their customer service system to link problem descriptions with past solutions. This is more of a 'knowledge-based expert system' in the jargon of the industry, but draws on many of the same principles. I believe this is true, this is where the servers dial in to Dell periodically for diagnostics etc. The server line maintenance contracts are full of this stuff. Not much on the low end since it wasnt cost effective yet, and for a while there every automated diagnostic call actually cost more than an actual case logged in to support via phone. However the promise is there for cost effectiveness everybody knows that. Im not sure how this AI topic came up but I know you all are always worried about Dells support model vs Compaq and yes indeed there is evidence that Dell intends to bypass a huge support organization with technology. We never heard much about AI in the supply chain though, because we were trying to solve much more podantic issues. Example outbound logistics is spending most of their time wrestling with the shippers on hub and spoke assembly contracts as well as negotiations on std pricing etc. So were a long way from automating this huge part of the chain... the problem is the business model is wrong right now with no competition in shipping charges once a vendor negotiates a contract with one of the shippers - theyve got you. A lot of resources will be spent getting these shipping charges down and wrestling control away from FedEx before theoretical gizmos like AI will be implemented in the back end of the chain. Michelle

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