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To: JRI who wrote (56792)8/6/1998 5:29:00 PM
From: Chuzzlewit  Read Replies (2) | Respond to of 176387
 
John, I expect that advantage to persist because it is based on the size of each order, not the rate of consumption. For example, suppose we are talking about a particular component, and CPQ buys 250,000 once every month, but Dell buys 57,534 every day.

TTFN,
CTC



To: JRI who wrote (56792)8/6/1998 6:50:00 PM
From: Don Martini  Read Replies (2) | Respond to of 176387
 
John: Can anyone tell what parts CPQ buys cheaper than Dell?
I doubt CPQ really buys at significantly better prices.

See post 54187: IDC reported "Dell & Compaq were neck and neck for the top spot in the USA." A supplier who gives advantage to one big customer over another makes an enemy out of #2. Any vendor who gives CPQ an edge over Dell is a fool, as nothing stays secret, the truth always comes out.

Could someone tell what parts CPQ buys cheaper than DELL?

Repeatedly Michael spoke of "taking cost out" to advantage customers. First place to do that is in the procurement offices.

For years I bought raw materials from national producers, often at better prices than bigger competitors paid. I honed buying skills constantly. The technique was to place large orders, pay very quickly and play no tricks.

I believe Dell does this to perfection!

Don