Pilgrims.....More on Brazil operations-------->
Dell Dedicates First Latin American Manufacturing Plant and Customer Center in Rio Grande Do Sul, Brazil
PORTO ALEGRE, Brazil--(BUSINESS WIRE)--Nov. 3, 1999--
Dell's Customer-Focused Direct Business Model to Provide Customized
Computer Systems, Greatly Enhanced Service and Support, Increased Price Efficiencies
Dell Computer Corporation(R) (Nasdaq:DELL), the world's leading direct computer systems company, today dedicated its first Latin American manufacturing facility and customer center at Eldorado do Sul, in the southern providence of Rio Grande do Sul, Brazil.
Sales, technical support, marketing, finance, information technology, human resources and general administration departments as well as manufacturing will be housed at the Eldorado facility.
Dell initially will build its award-winning Dimension(R) and OptiPlex(R) desktop PCs to customer specifications at this state-of-the-art facility. However, Dell's full product line of notebook PCs, workstations, servers and data storage systems are also immediately available for sale to home, small business, government and commercial customers throughout the Brazil market.
As part of Dell's direct operations in Brazil, the company will open next Monday, Nov. 8, its online store (www.dell.com.br) which, along with already operating toll-free telephone sales (0800-903355) and technical support operations, make it easy and fast to purchase Dell computer systems.
The new projects continue Dell's global expansion, including the completion of five manufacturing facilities worldwide over the last 18 months. Among the other new facilities are two in Ireland and one each in Xiamen, China, and Nashville, Tenn., in the United States.
Raising the Bar on Service and Support
The customer center opening results from growing opportunity for Dell's award-winning products in Brazil and the need for greater levels of service and support for both local and global account customers. Dell expects to provide greatly enhanced customer service and support, faster-than-average delivery times and competitive pricing.
"We are honored to have Rio Grande do Sul become home to our first manufacturing and customer center facility in Latin America," said Michael Dell, chairman and chief executive officer. "Brazil and the Mercosur region represent a phenomenal opportunity for Dell, and Rio Grande do Sul is an excellent base of operations because of its sophisticated labor force, its economic incentives to attract technology-manufacturing companies to the region, and its strategic location as an export hub to other South American countries.
"From here, customers will have access to the latest technologies as soon as they become available, customized solutions, award-winning service and support, and extensive Internet capabilities," Mr. Dell said.
The Direct Model Advantage
Dell's award-winning customer service, industry-leading growth and consistently strong financial performance differentiate the company from competitors. At the heart of those characteristics is Dell's unique direct-to-customer business model. "Direct" refers to the company's relationships with its customers, from consumers to the world's largest corporations. There are no retailers or other resellers adding unnecessary time and cost, or diminishing Dell's understanding of customer expectations.
With the industry's most efficient procurement, manufacturing and distribution process, Dell offers its customers powerful, richly configured systems at competitive prices. Every Dell system is built to order. Customers get exactly what they want. Dell uses knowledge gained from direct customer contact before and after the sale to provide award-winning reliability and tailored customer service.
And, Dell introduces the latest relevant technology much more quickly than companies with slow-moving indirect distribution channels. Dell turns over inventory every six days on average, keeping related costs low.
Brazil Latest in Dell's Global Expansion
"Brazil is an important market for Dell. By bringing the true direct model here, we're giving Brazilian customers a new and simpler way to buy computers directly from a company that designs and builds relevant, leading-edge systems," said Mr. Dell.
"Dell recently moved to the No. 5 position in Latin America and sales from our Latin America Online Store have beat all expectations, confirming that our customers and potential customers are embracing both the Dell direct-to-the-customer approach and e-commerce."
Dell continues to outpace the industry in overall PC shipments, becoming the No. 1 supplier of personal computer systems in the United States, according to both International Data Corporation (Q2 1999). Over the past two years, the company reports it grew unit shipments more than 180 percent.
Legacy of Manufacturing Excellence
"Our new Brazil manufacturing team is committed and enthusiastic," said Mr. Dell. "It will help us extend Dell's reputation for outstanding product quality. Not only are we expanding our geographic reach with these facilities, but we are refining our manufacturing processes with each new project, taking the advantages of customized manufacturing to the next level.
"The new desktop manufacturing facility builds on past success and innovations from Dell manufacturing facilities around the world, with Dell's hallmarks of velocity, quality and factory-based customization."
Catalyst for Regional Growth
The customer center is expected to employ more than 200 people before year-end and create 700 jobs within five years. According to a Price Waterhouse study on the economic impact of the IT industry in Latin America, for every direct job generated by IT industries, up to 5.5 indirect jobs are created locally.
As Central Texas' largest private employer, Dell's direct and indirect economic impact is estimated by economists to be more than $5 billion and 50,000 jobs.
Several Dell suppliers are finalizing plans for their own Rio Grande do Sul expansions to support Dell's just-in-time manufacturing operations. These include Samsung and Krafoam to name a few.
"There are many advantages that a Brazilian manufacturing and customer center will bring Dell. But equally important are the advantages that a Dell expansion will bring to Rio Grande do Sul," Mr. Dell said. "The thousands of technology jobs created by Dell and our suppliers would launch and stimulate a new sector of the Rio Grande do Sul economy. We hope that Dell's investments can have the same positive effect for Brazil that they've had for Central Texas and other regions where we are located."
Expanding the Accessibility of Information Technology
To commemorate its entry into Brazil, the Dell Foundation, represented by Mr. Dell and Dell Computadores do Brasil Ltda, pledged its financial and corporate support to a local non-profit organization, Committee to Democratize Information Technology (CDI), for the promotion of computer literacy. The Dell Foundation grant will go toward the establishment of the first CDI office in Rio Grande do Sul.
The CDI is a non-governmental organization working to further the educational, employment and civic advancement of economically disadvantaged children through the creation of community computer training schools.
In addition to the financial support, Dell will be donating computer equipment to CDI. Parceiros Voluntarios, also a non-governmental organization, will help CDI by providing volunteer instructors to work in the computer schools. Together with Dell Brazil, these organizations will work to create the first Dell Citizenship School (EIC-Dell) in Alvorada.
"This project is an important seed that will enable our younger generations to seek a brighter future," said Caius Brandao, CDI's Senior Program Coordinator. "Initially, the school will be able to train up to 300 students in the first year of its operation and we expect this number will grow exponentially as time goes on."
J.D. |
