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

To: GRANOLA who wrote (60097)	8/21/1998 12:29:00 PM
From: DoggieDude	Read Replies (1) \| Respond to of 176387

In short, when you're a huge customer to a business that business needs to treat you right. The suppliers may bitch and moan about it but they certainly are not going to stop selling to Dell over it.

To: GRANOLA who wrote (60097)	8/21/1998 12:29:00 PM
From: Lee	Read Replies (1) \| Respond to of 176387

Business is tough. Now if Dell figured out how to minimize inventory, how is it that some suppliers can't use Dell's example to streamline their inventories? I bet the suppliers who can figure this out get the business. Lee

To: GRANOLA who wrote (60097)	8/21/1998 12:43:00 PM
From: Keith Howells	Read Replies (1) \| Respond to of 176387

Granola, Toyota operates this way at it's Camry plant in Kentucky and they are very successful. Bottom line, you want to do business with them, you do it their way. They are also sticklers for quality. If the quality of the parts drops, and creates defects in their cars, the supplier is out the door. I hope Dell is just like them. Believe me there will always be suppliers who want to do business. You friend doesn't know what they're talking about.

To: GRANOLA who wrote (60097)	8/21/1998 1:15:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Granola, no defense is necessary. The whole point of JIT manufacturing is to push back inventories. This occurs along the entire manufacturing chain and is one side of the equation when Michael Dell talks about virtual integration. This is not arrogance, and 30 days inventory is not unusual for any supplier. Complaining about the terms of payment that Dell gets from its suppliers sounds to me like a dog in the manger type complaint. In fact, the evidence you present is one more reason to be heavily invested in Dell. If you recall my discussion with AlanH I pointed out that Dell's business itself represented the barrier to entry, and was a paradigm that could not be copied piecemeal. It is a highly integrated sales/assembly/purchasing system with a tremendous financial overlay. You have provided additional evidence in support of that position. TTFN, CTC

To: GRANOLA who wrote (60097)	8/22/1998 3:30:00 PM
From: jbn3	Read Replies (1) \| Respond to of 176387

DELL Component Suppliers I have read negative comments regarding this aspect of the DELL model before. But I also recall reading that DELL is working hard to develop ordering systems which pass its current orders directly through to its suppliers, basically at the time they are placed. Thus when DELL logs an order, the component suppliers for that order are also given instant notification. (added edit: And from our tour of Metric 12, when the component is placed in the machine on the installation belt, that action is also noted, so the supplier has access to virtually INSTANT inventory status) I think that the suppliers who make the best progress in adapting to this type of ordering are going to be far and away more effective than their competition. I'm sure it does create some uncertainty and decision stress at the bottom of the 'food chain', but it also very effectively emphasizes efficiencies. As the practice becomes widespread, I believe that companies will become more skilled at reading and predicting their short-term market. I see it as a higher level of the consumer-market dynamic, a further step away from the 5-year-plan. I do not say it will be easy to do. Those who do it best will thrive, those that don't are prone to succumb. JMHO. Another thing to remember: DELL is (or is very likely to be soon) these manufacturers' LARGEST SINGLE CUSTOMER. 3.