chnology.The Dell Direct model does not only involve a direct relationship with customers but also includes suppliers. Through the use of the World Wide Web, Dell has been able to integrate both customers and suppliers into its manufacturing and logistics function. Dell manufacturing and Logistics processDell is the quintessential model of Just in Time management. Supplies and components are ‘pulled’ through the organisation to arrive where they are needed and when they are needed. As highlighted earlier Dell operates on just eight days of inventory, alternatively components are pulled through the production system through use of the ‘Kanban’ system. Suppliers or workstations only deliver components when they receive a card (for example an e-mail) or an empty tote informing them those parts are/will is needed for production.Dell has been able to use an ‘integrated Kanban’ process to significant advantage, this process is divided into two areas, which are the transport Kanban and the production Kanban. The distinction between the two is the transport Kanban works on a daily schedule where components are produce by suppliers depending on the specific order for that day. As a result of building to order it is difficult for Dell to determine or forecast the particular components which would be needed, which justifies the use of the Kanban process.On the other hand the production Kanban outlines when work has to be completed by a particular cell or workstation. Therefore based on that time-scale suppliers are able to determine at which point in the assembly line their particular component would be needed. The integrated Kanban process is based on fixed production schedules and can therefore only be successful with an efficient and effective logistics process. This process is also dependent on mutual trust between Dell and suppliers. To foster this trust and harmonise its relationship with supplie...
