: the value of inventory is being replaced by the value of information physical assets are being traded for intellectual assets closed business systems are giving way to collaborative relationships”.Dells corporate culture is based on the points highlighted above, transmission of information internal and external to the organisation has gone from one extreme of being timely to being real-time.As highlighted earlier in this report, Dells Virtual Integration process has revolutionised the way manufacturer – supplier – and customer interact. Research and Development activities, which would normally take months or years, can now be done within a matter of days. This is best achieved by incorporating the efforts of engineers in different parts of the world.“Time is money”; this clich should be common knowledge to every businessperson. Dell awareness of the importance of reducing lead-time in its logistics process is one method of sustaining a competitive advantage. Through the use of Just In Time, the firm continually eliminates time-consuming activities, which do not add value to the product.For Example, Dell at one point ordered components in bulk from one supplier as a means of receiving discounts. This process was regarded, as non-value added to the customer. Hence, Dell switched to three regional subcontractors, rather than using one main manufacturer. The trade-off of the cost and benefits in one area resulted in lower cost and significant improvements in service to customers, by reducing the lead-time. Another benefit of J.I.Tto Dell is that the firm does not have to bear the risk or cost of components becoming obsolete. Moreover, the same benefit is gained by building to order rather than building and then merchandising.Another effective Inventory Management Method used by Dell is in telephone sales suggested configurations might be altered to guide customers to PCs with ...
