Dell Computers
There are two major elements to Dell Computer's strategy; First, cutting out retail dealers and circumventing distributors, eliminating the markups of resellers. Second, build to order; pull your product as the market and consumers demand. To reduce the costs and risks that come with carrying large stocks of parts, components, and finished goods. Through this strategy Dell has the industry's most efficient
The have built a supply chain that is essentially vertical integration with such close ties to their suppliers. " Dell has such close relationships with its suppliers that they even share daily production schedules, sales forecasts, and new-model introduction plans with its suppliers. Dell's just-in-time strategy has benefited the company with major cost advantages and shortened the time it took Dell to get next generation products to the market place. According to the reading on Dell "Many of Dell's vendors had plants or distribution centers within a few miles of Dell assembly plants and could deliver daily or even hourly if needed. Dell's commitment to reduce the costs of inventory has made Dell an industry leader in just-in-time inventory practices. With new advances coming at lightning speed and making components that where state of the art a month ago obsolete, Dell has become one of the industry leaders in bringing new products to market fast and cheap. Dell has made long term commitments to its suppliers which has fostered trust, making some outside suppliers feel as though they are part of Dell. This has laid the basis for just-in-time delivery of suppliers products to Dell's manufacturing and assembly plants.
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