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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (145189)	10/19/1999 4:33:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

lee....re: rude's disappointment with msd guidance" everyone is focusing on dram pricing and its effect on this quarters margin. is it conceivable that the "perfect" dell business model has revealed a major flaw in its ability to execute? bto/jit shifts inventory downstream to the vendor level. vendor delivers on a daily basis, the requirements for current production. what is difficult to believe is that dell has not locked in prices for even a quarter. fixed price for a predetermined period is essential for execution. as stated "things" that effected margins appear to have caught dell by surprise. the "perfect" model must be able to handle supply chain disruptions without "surprise". if it can't then it is vulnerable to the vagaries of the supply chain. bto/jit works in the best of times. as a company grows, the "strength" of the "perfect" model becomes in the worst of times its potential "weakness". remember "mikey" wasn't the innovator, as many think....toyota started this process in the early sixties. when the japanese economy faltered, the supply links were broken...even now with a recovery, some links are beyond repair (refer to nissan very american announcement of "downsizing"....) look beyond what seems to be apparent.....perhaps they had no "strong" supply contracts....maybe the reason for signing long term deals this year?..........the "perfect" model does not control the vendor....it is the opposite..... take care...ed a.