SYNOPSIS In this report an examination will be made of the production and logistics system of Dell Computer Corporation. Emphasis will be placed on the How effective is The important aspects of Dell's product/ service following: Dells internal and external logisticsthe firms resource planning procedures? The key difficulties - potential points of failure in the Dell'sprocess How technologies are being used or can be used to make thelogistics process 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 hardware and software to the specific needs of the consumer.
