ISYS1021 Chapter Notes - Chapter Info Systems- Dell: Accounts Payable, Disintermediation, Organizational Culture
20 Dec 2017
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Dell survived 10 day supply chain blackout with 72 hours of inventory and never delayed a. Inventory has traditionally been af form of security customer order. Dell has eliminated finished goods inventory by cutting out retailers and connecting. When you have zero inventory, you can take immediate collective action to directly to customers fix issues. Company doesn"t pay suppliers until 36 days after they receive payment. Disadvantage is that dell shifted inventory burden to its suppliers. Replaces inventory with information exits the factory is done in about 4-8 hours. Database of purchasing patterns and budget cycles of corporate customers allows more accurate forecasting of demand. Dell ranks suppliers against competitors, so suppliers fight to get dell"s business. Dell and hp together on a long road nowhere. Dell"s stock hit an all time high in early 2000s but then started declining. Want to deliver differentiated customer value long term. Dell did not offer nearly as much innovation as samsung and apple.
