Trends
19/02/2007 15:07
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Computer maker Dell has announced that it plans to restructure its current supply chain and procurement setup.
The recent creation of a global operations organisation, to be lead by Michael Cannon, should enable Dell to combine its current manufacturing, supply chain and procurement operations in order to boost overall efficiency and reduce costs.
Dell rapidly developed into a market leader within the PC market lead due to its innovative supply chain and manufacturing systems. However, now that its main competitors have implemented similar changes, the computer maker is keen to regain the market advantage and boost investor relations by introducing innovative procedures to both its supply chain management process and its procurement methods.
Brent Bracelin, an analyst with Pacific Crest Securities, speaking to Bloomberg, explained: "This is a first step in perhaps Dell trying to regain the supply chain advantage they had and lost."
He added: "Michael Dell is bringing in someone with very good skills sets in the commodity supply chain and that should give investors some confidence they could streamline as they work to have a better cost structure than their competitors.''
The restructuring means that Mr Cannon will now be responsible for nine manufacturing plants across five countries and procurement will no longer be handled regionally.
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