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

To: kemble s. matter who wrote (99209)	2/14/1999 3:54:00 PM
From: Lockeon	Read Replies (3) \| Respond to of 176387

Kemble - Hi, something for your notebook, perhaps? Here is an article from InfoWeek... informationweek.com Excerpt...<snip> Dell Computer Excess inventory is like a leech that slowly sucks resources and money out of a business. To kill the creature, Dell Computer is steadily replacing inventory with information. "Inventory is a security blanket," says Lance Van Hooser, director of E-commerce at Dell. "The only reason companies build up inventory is because they don't know about events that are going to happen. The more you know, the less inventory you will have to carry." Right now, Dell carries about seven days of finished product. The goal is to count that already low figure in minutes. The company is turning to the Internet to collaborate and conduct business with suppliers and customers at unprecedented levels. Dell recently created customized Web pages for its top 30 suppliers, whose employees can log on to a secure, personalized site to view demand forecasts and other customer-sensitive information--such as who Dell's customers are and how much equipment each is ordering--to help them better gauge demand. As a result, suppliers can more easily match their production schedules to Dell's--making only what is needed, when it's needed. Dell is also passing on data about its defect rates, engineering changes, and product enhancements to these suppliers. Since both Dell and its suppliers are in constant communication, the margin for error is reduced. Also, partners are now able to collaborate in real time on product designs and enhancements. Suppliers are also required to share sensitive information with Dell, such as their own quality problems. Van Hooser says it's easy to get its suppliers to follow Dell's lead because they also reap the benefits of faster cycle times, reduced inventory, and improved forecasts. And ultimately, the customer gets a higher-quality product at a lower price. Dell is also using the Internet to create a community around its supply chain. The Web sites all have links to bulletin boards where partners from around the world can exchange information about their experiences with Dell and its value chain. "The Internet is the core of everything we are doing," says Kevin Rollins, vice chairman of Dell. "It provides the capacity to improve the flow of information, eliminate paper-based functions, and link global organizations." Dell is also using the Internet to form tighter links with customers. For many of its business users, the company has created Premier Pages containing approved configurations, prenegotiated prices, and new workflow capabilities, so when an employee requests a new computer, the order is automatically routed to the appropriate person within the buying organization for approval. Rollins says Ford Motor Co. saved about $2 million in initial procurement costs by using its Premier Page. "With information technology, the value of inventory is quickly being replaced by the value of information," he says. <snip> The only thing incorrect here is the statement that "Right now, Dell carries about seven days of finished product". That ain't quite right but the general sentiment seems correct....<G> Have a GREAT weekend..... Kendall - PM