Kemble - Hi, something for your notebook, perhaps? Here is an article from InfoWeek...
informationweek.com
Excerpt...<snip>
Dell Computer
Excess inventory is like a leech that slowly sucks resources and money
out of a business. To kill the creature, Dell Computer is steadily
replacing inventory with information. "Inventory is a security blanket,"
says Lance Van Hooser, director of E-commerce at Dell. "The only
reason companies build up inventory is because they don't know about
events that are going to happen. The more you know, the less inventory
you will have to carry."
Right now, Dell carries about seven days of finished product. The goal
is to count that already low figure in minutes. The company is turning to
the Internet to collaborate and conduct business with suppliers and
customers at unprecedented levels.
Dell recently created customized Web pages for its top 30 suppliers,
whose employees can log on to a secure, personalized site to view
demand forecasts and other customer-sensitive information--such as
who Dell's customers are and how much equipment each is
ordering--to help them better gauge demand. As a result, suppliers can
more easily match their production schedules to Dell's--making only
what is needed, when it's needed.
Dell is also passing on data about its defect rates, engineering changes,
and product enhancements to these suppliers. Since both Dell and its
suppliers are in constant communication, the margin for error is
reduced. Also, partners are now able to collaborate in real time on
product designs and enhancements.
Suppliers are also required to share sensitive information with Dell,
such as their own quality problems. Van Hooser says it's easy to get its
suppliers to follow Dell's lead because they also reap the benefits of
faster cycle times, reduced inventory, and improved forecasts. And
ultimately, the customer gets a higher-quality product at a lower price.
Dell is also using the Internet to create a community around its supply
chain. The Web sites all have links to bulletin boards where partners
from around the world can exchange information about their
experiences with Dell and its value chain. "The Internet is the core of
everything we are doing," says Kevin Rollins, vice chairman of Dell. "It
provides the capacity to improve the flow of information, eliminate
paper-based functions, and link global organizations."
Dell is also using the Internet to form tighter links with customers. For
many of its business users, the company has created Premier Pages
containing approved configurations, prenegotiated prices, and new
workflow capabilities, so when an employee requests a new computer,
the order is automatically routed to the appropriate person within the
buying organization for approval.
Rollins says Ford Motor Co. saved about $2 million in
initial procurement costs by using its Premier Page. "With information
technology, the value of inventory is quickly being replaced by the value
of information," he says.
<snip>
The only thing incorrect here is the statement that "Right now, Dell carries about seven days of finished product". That ain't quite right but the general sentiment seems correct....<G>
Have a GREAT weekend.....
Kendall - PM |
