Donal Reddington on mass customization, crowdsourcing and digital manufacturing

Dell responds to critics of build to order strategy

After much recent media comment suggesting that Dell’s build-to-order strategy no longer provides an advantage in the marketplace, the company has responded through its Direct2Dell blog.

Mike Gray, who is described as a ‘Supply Chain Evangelist’ says that:

“it may depend on what part of the supply chain you are looking at … on the components or supply side of our business, Dell customers (along with all consumers of electronics) continue to benefit from the effects of Moore’s Law—as the density of transistors on a silicon chip continues to increase, we all get to purchase better technology cheaper and, though some suggest that the pace of Moore’s Law will slow down overall, it still helps us keep cost low.”

He also states that, over the last 6 years, Dell has held around five days inventory, and that the company’s ‘productive inventory’ is measured in hours instead of days or weeks.

He notes that competitors have closed the gap with Dell to some extent, but that the company is continuing it strategy of building products close to customers, recently announcing new plants in Poland and India.  Gray promises more blog posts relating to Dell’s SCM in the future.

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