Dell Computers Company Inventory Management

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Presentation transcript:

Dell Computers Company Inventory Management

Just-In-Time inventory system . Dell implements a Just-In-Time inventory system which operates on only 6 days of inventory. Dell is able to achieve greater profit margins and increased profits because of their inventory system. Inventory and labor are the highest liabilities of a firm.

Build to Order Dell’s business has been built on a direct sales, build-to-order strategy for producing and selling PCs. Dell capitalized in the inherent advantages of its business model to grow rapidly and profitably.

How can Inventory be reduced? Total Quality Management Just-In-Time Management Global Management Philosophy

As Dell's CEO, Kevin Rollins, put it in an interview with Fast Company: "The longer you keep it the faster it deteriorates -- you can literally see the stuff rot," he says. "Because of their short product lifecycles, computer components depreciate anywhere from a half to a full point a week. Cutting inventory is not just a nice thing to do. It's a financial imperative."