(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
Dell Targets Seven-Hour Turnaround
October 3, 1998 (TOKYO) -- "We would like to shorten our PC inventory turnaround period to approximately seven hours," said Kevin B. Rollins, vice chairman of Dell Computer Corp., in his keynote address to the World PC Forum 98.
In his address, Rollins talked about Dell's direct selling system via the Internet, which has achieved the greatest growth in the PC industry.
Rollins revealed that Dell is aiming to shorten its inventory turnaround period to somewhere between five and seven hours -- the time required from assembly of a PC to packaging.
To achieve this goal, the company will upgrade its direct selling system over the Internet so that it can control inventory in a time span from several hours to several minutes in order to instantly reflect customer needs. Current inventory turnaround period is approximately eight days.
Dell was the first to start its direct selling system over the Internet in July of 1996. Thanks to the system, the company has been successful in shortening its manufacturing processes for everything from order-taking to product delivery.
The system is commissioned in more than 40 countries. The company's web site sees 2 million hits every week and the sales are as high as $6 million per day.
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Updated: Fri Oct 02 15:29:02 1998 PDT