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

To: K. M. Strickler who wrote (33689)	3/11/1998 10:19:00 AM
From: SecularBull	Read Replies (3) \| Respond to of 176387

DELL/SUPPLIER RELATIONSHIPS: That was one of MSD's points exactly in the HBR article. He said that it was difficult to convince suppliers of this first, but they soon realized that the process improved consistency in flow of orders, and also very rapid feedback on demand. He used Sony as a case in point, and further went on to explain that Sony ships monitors directly to DELL customers, instead of to DELL. When an order is placed, DELL informs Sony, and Sony ships the order to the distribution facility of whichever carrier DELL decides to use. The carrier (Airborne, FedEx, etc.) collates the "box" and the monitor, and they both arrive at the buyer's address as if DELL had shipped both items from Round Rock. DELL never touches the monitor. Sony labels it and boxes it in a DELL container. MSD said that with an rate of less than 1000 per million of defective monitors, DELL is not concerned about quality problems, and therefore feels confident about Sony sending the problem directly to DELL customers. DELL customers never know that DELL didn't ship them the monitor. What's more is that DELL NEVER INVENTORIES THE MONITOR!