Dell

12 Pages 2986 Words

Dell Computer Corporation

SYNOPSIS In this report an examination will be made of the production and logistics system of Dell Computer Corporation. The important aspects of Dell’sEmphasis will be placed on the following:  How effective is the firms resource planning procedures? product/ service The key difficulties - potentialDells internal and external logistics process How technologies are beingpoints of failure in the Dell’s logistics process used or can be used to make the logistics function more efficient/effective? What is Dell Computers all about? Michael Dell founded Dell Computer Corporation in 1984 having only $1000 start-up capital. To date, his business has grown to become the second largest computer systems producer in the world, with average daily sales of more than $5 million. The ‘hub’ of Dells production system is based in the U.S (Round rock, Texas), while other factories are located in Nashville, Tennessee, Limerick, (Ireland), Penang, Malaysia, Xiamen, China and Eldorado do Sul, Brazil. Dell has offices in thirty-four countries around the world and sells its products and services in more than one hundred and seventy countries. The table below provides a break down of Dells global market growth and position. Monetary values are quoted in US$ in millions. Continent Market Position Net Revenue as at January 28/2000 Annual Growth Rate Dell Americas Dell Europe/Middle East/Africa Dell Asia Pacific and Japan 1 2 7 17879 5590 1796 48% 24% 52% According to Dells forecast it is estimated that total revenue will amount to US$33 billion this year, where US$20 billion will be as a result of online transactions. (1) In the Appendix of this report, a consolidated statement of income on Dells financial position for the year ending 28/1/00 is presented. The important aspects of Dells Product and Service Dells core competency lies in customising its product – computer hardwar...