ents inventories, direct sell to customers, award-winning customer service and technical support, and pioneering use of the Internet and E-commerce technology. Management believed that a strong first-mover advantage accrued to the company from its lead over rivals in making e-commerce a centerpiece in its strategy (pg. C-147).Dell chooses few outside vendors as a partner and tries to stay with them long period as long as they maintained their leadership in technology, performance and quality. A central element of Dell Computers strategy, therefore, was to evaluate the various makers of each components, pick the best one or two as supplies and partner with them for as long as they remained leaders in their specialty (pg. C-148).Implementing Strategy: Dell was active in pushing for better execution of the just-in-time inventory concept and reduction in the number of days of parts inventories. As Michael Dell explained what delivery capabilities expected from its suppliers, We tell our suppliers exactly what our daily production requirements are. So its not, well, every two weeks deliver 5,000 to this warehouse, and we will put them on the self, and then we will take them off the self. Its Tomorrow morning we need 8,562, and deliver them to door number seven by 7AM (pg. C-149).Dell computer improved and refined its inventory tracking process, working relationships with partners and suppliers and its method of operating with small inventories. In fiscal year in 1995, Dell averaged an inventory turn ratio of 32 days. By the end of fiscal year 1997, the average was down to 13 days. The following year, it was 7 days, which compared very favorably with Gateways 14 days average, Compaqs 23 day average, and the estimated industry wide average of over 50 days (pg. C-150). Dell was running its operation with an average of 6 days of supply in inventories and it had a long-term goal of running in 3 day of average supply.The direct approach allowed De...
