widely available parts.Dell compared to Competitors – Competitors like IBM, Hewlett-Packard and Compaq have used Dell as a benchmark in analysing their own efficiencies and inefficiencies. They have also taken steps a developed their individual build – to – order processes and integrated supply chains in their efforts at reducing the lead-time of their products. The major difference between Dell and its competitors is that while their inventory remain on shelves for months they eventually become obsolete as the pace of technology rapidly changes. Dell does not start ordering components and building computers until an order is booked. (3)Despite the numerous advantages of Dells logistics system highlighted above there are some shortcomings as highlighted below.Points of failure in Dells logistics processAs a result of having such a timely and well planned logistic system, any interruption in the supply of components can have an impact on Dells short-term performance. Dell is primarily using some suppliers because of the unavailability of alternative sources. In the event these suppliers experience some difficulty, this would result in a domino effect on Dell.The firm’s production process requires a very high level of quality, in relation to components, which are received sometimes from third party suppliers. There is a high level of risk involved in receiving components from in purchasing these parts, where the possibility exists of them being defective. This in turn would have a significant effect on the organisations corporate image.References(1) Dell.comMichael Dell Speech ArchivesThe PC Industry a Robust outlook 10/09/98Leadership in the Internet Economy 7/4/00Collaborating in a Connected Economy 24/6/98Building a competitive advantage in an Internet Economy11/1/99Maximum speed Lessons learned from managing Hypergrowth 9/10/98http://www.euro.dell.com/countries/uk/enu/gen/corporate/speech_1998-10-09-aus.0...
