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DELL: Logistics research report

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  1. DELL presentation
    1. The company
    2. The Dell effect
    3. Balancing liquidity, profitability and growth
    4. Concerning logistics
  2. Dell's logistics system
    1. The overall system
    2. Dell's logistic model
    3. Impacts of Dell on its suppliers locations
    4. Dell's main operations
    5. A business based on the Internet System
  3. Dell's major advantages
    1. Customized product
    2. Dell direct model
    3. Just in time management
    4. The use of Internet
  4. Dell's major disadvantages
    1. Dell major challenge

Dell has revolutionized the industry in the last 20 years, to make computing accessible to customers around the globe, including businesses, institutional organizations and individual consumers. Because of Dell's direct model, and the industry's response to it, information technology is more powerful, easier to use and more affordable, giving customers the opportunity to take advantage of powerful new tools to improve their businesses and personal lives. Dell has demonstrated this effect time and again as it enters new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories. Nearly one out of every five standards-based computer system sold in the world today is a Dell. This global reach indicates that our direct approach is relevant across product lines, regions and customer segments.

[...] Dell's decision shows how closely logistics and manufacturing are linked in the era of global supply chains and mass customization. Dell's manufacturing, logistics and shipping strategies make it possible to customize computers for individual consumers at a low cost and for a low price. Dell plans to keep that competitive advantage by bringing assembly and distribution closer to its customers. With its dominant share of the PC market, its distribution plans also are closely watched by competitors and logistics providers. [...]


[...] Concerning logistics Dell Gets Domestic By locating assembly, shipping sites closer to home, Dell hopes to keep its advantage in U.S. market Dell is putting some of the "U.S." back in the U.S. computer industry while speeding production and delivery cycles. The computer maker will open its third domestic plant in the fall of 2005, a step that could have significant supply chain implications. Dell is counting on logistics efficiencies generated by its direct-to- consumer sales model to offset higher U.S. [...]


[...] Overall, she said, Dell research indicates the company enjoys a 6.5 percent price advantage over competing computer makers. Is all that enough to make a U.S. computer assembly plant a paying proposition? Dell is a star performer on the S&P 500, Elliff notes. "The proof is in the pudding," he said. II) Dell's Logistics system The overall system Dell sells 90% of its PCs directly to the final customer, largely bypassing the reseller channel that represents most of the PC sales in the world. [...]

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