Dell Inc And How It Uses Customer Data Drive The Manufacturing Of Its Products

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Introduction This essay will focus predominantly on Dell Compter Inc and how it uses customer data to drive the manufacturing of its products. Discussion on how Dell uses technology to make business decisions is presented. The current model of distribution is investigated and finally recommendations will be made in terms of overall improvement to the current operating model. This paper will discuss how Dell pioneered a shift in computer manufacturing, the method it used to become a leader in that industry and the models it used and still employs, today. The industry The traditional method of computer manufacturing was to pre-assemble computers, store them and release them to retailers for distribution to the final customers (smallbusiness.chron.com). Dell’s direct sales approach changed all that by bypassing retailers and selling direct to the customers (Kapuscinski et al, 2004). The industry now uses just-in-time inventory, controlling the manufacturing and ordering of parts, to minimise costs. Although Dell was not the pioneer of Just-in-Time, JIT as a method of manufacturing and controlling wastages was established by Toyota, in the 1970s. Dell uses just-in-time inventory to both minimise costs and reduce waste in its manufacturing process. The advantages that JIT brings in terms of savings in costs, capacity and waste, are now well published. The computer firms by their parts from various suppliers. 7 Plants worldwide As costs escalated and technology improved

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