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

To: Chuzzlewit who wrote (56927)	8/7/1998 10:10:00 AM
From: WBC	Read Replies (1) \| Respond to of 176387

The Dell model still benefits from low unit cost based on forecasts and minimum mfg. commitments to partner/suppliers. The difference is that the JIT used by Dell keeps turns high, components current rev., matches costs more closely with revenues, and maintains a steady and managed stream of incoming component flow. The CPQ model is more like a slinky...hit the gas..hit the brake, resulting in a more inefficient model of supply chain management. Regardless, the point is that component cost delta's are insignificant, especially when we look at the TOTAL cost structure between the two different models.